Last week Shaun Donovan the HUD Secretary spoke at a National Association of Realtors Conference stating how the FHA will allow first time homebuyers to use the $8,000 first-time homebuyer tax credit as a down payment toward a home.

The way this was supposed to work is that the buyer would get a bridge loan that would give them the $8,000 up front, they would buy a home, and then when they get the tax credit they would pay off the loan.

There were many unanswered questions on who would be allowed to give these loans and the process; however the reports of it were to be found everywhere. 

We find out now that apparently the HUD Secretary misspoke or maybe just announced the program too early.

In fact we now find that the information has been removed from the HUD website and the mortgagee letter has been pulled, though HUD has made no official comment, one of the lenders I use is treating this as rescinded. HUD states they will let the lenders know if and when there is a change.