Home tax repair

The Housing and Urban Development (HUD) agency is looking to alter the use of the $8,000 first-time homebuyer tax credit that was enacted in the fiscal stimulus package so it reaches people faster.

{mosads}Currently, the tax credit is available to first-time homebuyers and applies when they file their taxes. Critics have argued that the tax credit is taking too long to reach potential buyers because it is not monetized early enough to provide a strong incentive and stimulus to the housing market.

HUD Secretary Shaun Donovan is looking into having it take effect earlier — during a home closing, for instance, or when a homebuyer makes a down payment, said Melanie Roussell, HUD spokeswoman.

The change would apply just to Federal Housing Administration loans, Roussell said.

“I think the secretary is very serious about making it happen,” Roussell said, adding that Donovan “hopes to announce something in the coming days.”