The $8,000 tax credit for first time home buyers is partly responsible for the increasing affordability of homes and the corresponding rise in home sales. The real estate scene is expected to get better after Secretary Shaun Donovan of the HUD confirmed that the $8,000 tax credit can now be monetized by first time home buyers through recognized lenders and government agencies.

This was a response to the clamor from consumers for the monetization of the $8,000 federal tax credit instead of being credited to the buyers later on in terms of a check from the IRS. This will allow home buyers to get an additional $8,000 which they can use as down payment when purchasing their homes.

Donovan told the participants of the National Association of Realtors conference that “bridge loan” program are being supported by the HUD to help first time home buyers get additional cash for their home purchase. Under the concept the anticipated $8,000 tax credit can already be advanced to an FHA-approved nonprofit organization, state or local housing agency or FHA-approved private lender.

At least ten state housing finance agencies has started with their own credit monetization programs even before the monetization was approved. These agencies are located in Washington, New Mexico, Pennsylvania, Ohio, Idaho, Tennessee, New Jersey, Delaware, Colorado and Missouri.