MADISON, Wis. -- The National Association of Realtors reported that home sales in the Midwest are up compared to last year, and a change to the $8,000 tax credit could boost sales even more.

U.S. Housing and Urban Development announced that first-time homebuyers using a lender approved by the Federal Housing Administration can now get an advance on the $8,000 tax credit created by the federal stimulus package and apply it toward their down payment or to closing costs to get a lower interest rate.

HUD said the change to the tax credit will stimulate new home sales and help stabilize the housing market.

"For those people who have not owned a home for three years, they have basically an $8,000 tax stimulus credit on their tax return," said Mary Schultz, a Century 21 realtor.

Schultz said the tax credit is attracting first-time homebuyers who are looking for a good all-around deal.

"The good neighborhoods, the good schools, the bargains, certainly, but they're looking at the location, location, location. They're really paying attention to the resale value more so than ever before," Schultz said.

Roger Wolkoff's home in the Heatherglen neighborhood on Madison's West Side has been on the market for six months now with only two showings so far.

"It's been frustrating, just like it's been for everybody else," Wolkoff said. "I think it'd be great for a first-time homebuyer to take advantage of that. Having bought a couple houses myself, I think it's a great incentive. So I'm hoping someone will take advantage of it on mine."

Schultz said staging one's home helps the sale. She said sellers should remove clutter to make the home look more spacious. Schultz also said that having neutral colors appeals to most people.

People can find more information on the tax credit at this Web site.