Tax Credit for First Time Home Buyers... credit will be allowed to be used as down payment considered by FHA

More possible good news for first time home buyers. Shaun Donovan, secretary of the U.S. Department of Housing and Urban Development, on Tuesday said that the Federal Housing Administration is considering its lenders to allow home buyers to use the up to $8,000 tax credit as a down payment.

“We all want to enable FHA consumers to access the home buyer tax credit funds when they close on their home loans so that the cash can be used as a down payment.” Donovan says. He says FHA’s approved lenders will be permitted to “monetize” the tax credit through short-term bridge loans. This will allow eligible home buyers to access the funds immediately at the closing table.

This move will alow many who are able to qualify for a mortgage but don't have the 3.5% down payment to purchase a home.