On Tuesday I wrote about an exciting new program that HUD & FHA were rolling out to let the $8000 Tax Credit for First Time Homebuyers be used as a downpayment.

That has now been retracted, and the letter removed from the HUD site.

Yet Yesterday, HUD Secretary Donovan said that many states already were monetizing the tax credit, creating a so-called “Bridge Loan” where the money is loaned up front from the credit due down the line. This is, in essence, what the downpayment “credit” would come from. Here are more details from the National Association of Realtors conference where Donovan spoke.

Jeff Belonger, an FHA specialist ,wrote about it this morning, explaining the legal problems with the plan as proposed.

So not totally gone, but may not be available everywhere. OK, Maryland, are we going to be in? Can we get it done like Washington State has?