Shaun Donovan, secretary of the U.S. Department of Housing and Urban Development, announced today that the Federal Housing Administration is going to allow home buyers to use the $8,000 tax credit as a down payment through its approved lenders. Previously, the credit would come to first time home buyers after they filed their tax returns…next year in 2010.

“We all want to enable FHA consumers to access the home buyer tax credit funds when they close on their home loans so that the cash can be used as a down payment,” Donovan says.

According to Donovan, FHA’s approved lenders will be permitted to “monetize” the tax credit through short-term bridge loans. This will allow eligible home buyers to access the funds immediately at the closing table.

This will help many home buyers who were still unable to take advantage of this year’s $8000 tax credit. Down payment assistance is what most home buyers need the most, so this will be a welcomed change to the credit for many.