The Washington State Legislature has approved a loan program that would turn the $8,000 federal first time home-purchase tax credit, which is received in the form of a refund, into immediate, hard cash, available for your down payment and closing costs.

This budget amendment sets up a “Tax Credit Advance Loan Program” to give first time home buyers who qualify for the federal tax credit the money as a loan at closing, meaning you could use the money for your down payment, then pay it back when you get your tax refund.

State Treasurer James McIntire wrote the budget amendment, received  support from the Washington Realtors and the State Housing Finance Commission. The State Housing Finance Commission will be the department that will administer the program.

The Tax Credit Advance Loan Program will be run similar to a “bridge-loan” type program with some of the details still in the works you will want to check back as updates become available.