Builders look to turn buyers’ tax credit to cash

Home builders are considering trying to monetize the first-time home buyers’ $7,500 tax credit that’s part of the new housing legislation signed by President Bush. The credit can only be claimed after the buyer files taxes, but builders are looking for a way to get the cash into the hands of buyers before they purchase a home. The method builders plan to use remains unclear. One possibility would be for the builder to offer the money from the tax return upfront, putting them in the risky position of awaiting the buyer’s credit claim for repayment.