So I’ve posted links to press releases from HUD chief Shaun Donovan claiming plans to “monetize” the $8000 Credit in the form of some kind of nebulous “bridge loan” program. Then I posted an article showing how this plan was Dead on Arrival. Now I’ve been hearing that this credit will be accessible immediately upon close, but NOT for a down payment, only for closing costs. Again, I’m not very enthusiastic about any of these plans the more I think about them. In that first time buyer price range, financing the closing costs is very common and practically expected. In my humble opinion buyers would be much better served by financing the closing costs and prepaids, and then receive that $8000 tax credit later to save, or use for property fix ups.

I will be tracking this story as it creeps out. Honestly, my feeling is that by the time anything becomes legitimately available, it will be so close to December 1st (the final day the credit is available) as to be meaningless. Sorry to be such a downer.