Update on $8000 Tax credit Monetization-Suspended

Here is the Original statement from Mr. Donovan, Secretary of HUD.

HUD Secretary Donovan appeared at a NAR function last week and this is an exact excerpt of his remarks:

"We all want to enable FHA consumers to access the tax credit funds when they close on their home loans so that the cash can be used as a down payment. So FHA will permit trusted FHA-approved lenders and HUD-approved nonprofits, as well as state and local governmental entities to "monetize" the tax credit through short-term bridge loans. We think the policy is a real win for everyone, ensuring that borrowers can tap into the numerous organizations that are already part of the FHA network to receive this additional benefit. FHA will be publishing the details shortly."

Well unfortunately it looks like Mr. Donovan jumped the gun. As of right now HUD has suspended this program. Whether or not it comes back is anyone's guess.

Too bad, it would have been great for first time home buyers strapped for cash.