Use federal tax credit for buying mobile home, other costs

Q: I am a first-time homebuyer 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 a Web site where I can get the most up-to-date information on how to do this? -- D.

A: The regulations on that have changed several times. At the moment, for example, the Federal Housing Administration allows anticipation of the tax credit by offering 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 at irs.gov/newsroom or federalhousingtaxcredit.com.

Mobile home tax credit

Q: I have two questions. My first question is about the tax credit. Does it apply to manufactured homes, like mobile homes/trailers? It's on a concrete foundation, so it's semipermanent.

My second question is about my parents who have never owned a home. Dad was in the military so he would qualify for a Veteran's Administration loan. I believe I read that it has to be an FHA loan to qualify for the credit. Is this true or can he still use the VA benefit? -- A. E.

A: The first-time homebuyer 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.

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.

Fill in pool?

Q: I have a home with a 30-year-old in-ground vinyl pool. Will it be easier to sell the home by filling in the pool, or should I leave the pool? It is in good working condition. -- E-mail

A: If you're in the city and the pool takes up the whole backyard of an inexpensive property, it might be hard to find a buyer.

If you're in an suburb where almost everyone has a pool, buyers might be expecting it.

Those are the easy answers. It's probably not as simple as that.

Your best bet is to call several local real estate agents (look at for-sale signs in your neighborhood) and ask for some advice.

Real estate agents can advise you if other homes for sale in your neighborhood have a pool and what the median price is of a home in your neighborhood with a pool. The real estate agent can also advise if keeping the pool is a good idea.

Edith Lank will respond personally to any questions sent to her at 240 Hemingway Drive, Rochester, NY 14620 (please include a stamped return envelope), or readers may e-mail her at ehlank@aol.com.