$8000. tax Credit as down payment in New York

U.S. Department of Housing and Urban Development Secretary Shaun Donovan says the Federal Housing Administration will permit its lenders to allow homeowners to use the $8,000 tax credit as a down payment.

These remarks came in an address to thousands of REALTORS who gathered at The Real Estate Summit: Advancing the U.S. Economy, a special daylong session at the REALTORS Midyear Legislative Meetings & Trade Expo.

"We all want to enable FHA consumers to access the homebuyer tax credit funds when they close on their home loans so that the cash can be used as a down payment," Donovan said. According to Donovan, FHA's approved lenders will be permitted to "monetize" the tax credit through short-term bridge loans, allowing eligible homebuyers to access the funds immediately at the closing table.

Donovan also said he thinks the housing market is seeing early signs of stabilization and that the Obama administration plans to further stabilize the housing market.

"As the leading advocate for housing issues and homeownership, NAR continues to take a leadership role in promoting ideas for improving our economy by stabilizing the housing and real estate markets," said NAR President Charles McMillan. "Today we have the best of the best to begin a dialogue, develop solutions and initiate action toward real estate and economic recovery."