Who can say for sure…

Within the last week we’ve had several stories about the possible monetization of the new $8,000 Tax Credit for first-time buyers. There were also press releases by HUD and other agencies reporting that a program was being worked out to allow first-time buyers to use that tax credit for their down payment. Then there began to be rumors and rumblings about that program being reconsidered and that HUD had pulled back their press release, while they “studied” the risks and potential problems with such a program.

Many in the mortgage community got the equivalent of “Please Stand By” messages from their headquarters, as things in Washington bounced back and forth between a Go/No-Go decision. At this point, at the end of the week, we still don’t know if the program will actually fly and if it does, how it will look when it actually gets out.

The early reports were that some form of a bridge loan was under consideration; however, potential tax issues and risk concerns may have scuttled that approach. Other suggestions for doing some form of early tax filing and rebate were also considered or at least bandied about. It is not clear right now what the thinking is on how best to handle what everyone seems to believe is a good idea, in concept, and turn it into a workable reality.

So, for now, all that we really know is that we have the Tax Credit to work with and hopefully that will be enough to get some buyers off the fence. In a national forum that I post too, I asked earlier this week whether the tax credit is having the impact of drawing more buyers out in various markets. The replies were very mixed, with some saying it has had a great impact and many saying it has had no discernible effect in their markets.

Interestingly enough there was also a common thread running through the relies to my questions to the affect that many buyers still don’t know about the Tax Credit. That’s amazing in this age of instant widespread communications. I guess my earlier rant about our society being tuned-out to most traditional news sources applies to this issue too. So for those int eh audience who haven’t heard about it, here’s a link to a site that can explain the first-time buyer Tax Credit. It also has information about programs that are still available for 100% mortgages.

Dude, No Way! Way, Dude!