Ms. Lank: I am a first-time home buyer with very little money for a down payment. I am extremely interested in the column where you stated that the $8,000 tax credit can be used as a down payment. No one I have spoken to knows anything about it. Can you direct me to someone local or a website where I can get the most up-to-date information on how to do this? -- D.

Answer: The regulations on that have changed several times. At the moment, for example, the Federal Housing Administration allows anticipation of the tax credit, in the shape of a short-term "bridge" loan. While it can't be used toward the FHA's required down payment, it can go toward other closing costs.

Ask lenders if they're handling that plan. If you don't want to contact lenders yourself, talk with mortgage brokers. Those are people who specialize in bringing borrowers and lenders together, and they will know which banks are working with the program.

You can find good information here.

MOBILE HOME TAX CREDIT

Dear Edith: Two questions. Does the tax credit apply to "manufactured homes," like mobile homes/trailers? It's on a concrete foundation, so it's semi-permanent.

My parents have never owned a home -- always rented. Dad was in the military so he would also qualify for the VA loan. I believe I read that it has to be an FHA loan to qualify for the credit. True, or can he still use the VA benefit? -- A. E.

Answer: The first-time home buyer tax credit is available for the purchase of a manufactured home, townhouse, condominium, even a houseboat if it is to be used as a main home. And your father can use the tax credit with a VA mortgage. The type of mortgage makes no difference. It could even be an all-cash purchase.

LOSING EARNEST MONEY

Dear Ms. Lank: We have signed a contract to purchase a home. We hired an inspector to look at the home. His report says that the roof is in need of a replacement. In the contract, the seller agrees to pay up to $1,000 for repairs. The approximate cost of the roof repair will be $3,000. If I withdraw from the contract, is my earnest money returned? Or do I have to lose this and chalk it up to one of those things? -- R.

Answer: If your contract contains a provision saying it is "subject to" or "contingent upon" a satisfactory report by a home inspector, then the deal would not be binding unless you said the report was satisfactory. If you wanted out, your money should be returned. If you still wanted the house, you could try further negotiation at that point. Continued...