Mortgage modification hurts your credit

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NEW YORK (CNN) -- QUESTION 1: I wanted to know if you could tell me how much longer the tax credit for first-time homebuyers will be available? I am a US citizen living abroad and plan to purchase a condominium in Texas-would this tax credit apply to me for that? --Anonymous

The first-time homebuyer tax credit was recently extended. To qualify, buyers have to sign purchase agreements before May 1 and close before July 1.

As long as you haven't owned a home within the past three years and as long as you plan on living in the home as a primary residence, you should still be able to get the credit. For more eligibility requirements, go to federalhousingtaxcredit.com.

QUESTION 2: I am a student in NYC and am wondering about the $2500 tax credit for parents of students. I researched a bit online and came up dry. Could you please let me know how I can take advantage of this tax credit? -- Blake

You're talking about the Hope scholarship tax credit.

This credit can be applied to college tuition, fees and course materials. For most people, this is going to be one of the best benefits says Mark Kantrowitz of Finaid.org.

With a tax credit, you can deduct your tax bill dollar for dollar. So, as it works with the Hope Scholarship, $2,500 will be subtracted from your tax bill. There are income phase-outs ($80,000 for single filers and $160,000 for couples). This tax credit will end at the end of next year, unless it's extended by Congress. For more information, go to finaid.org.

QUESTION 3: I am trying to confirm whether or not participation in the highly touted Mortgage Modification Program will negatively affect my credit report. A friend indicated that she asked her bank this question and they said that it could. -- Loan

Your friend is right. Your credit score might suffer depending on how your mortgage lender decides to report it to the credit bureaus says John Ulzheimer of Credit.com.

Many lenders are reporting loan modifications as "partial payment plans," which is considered negative by the FICO score. This is supposed to change soon, when lenders will start reporting them as a "loan modification under a government program," which is not considered negative by FICO. So if you want to modify your mortgage loan then it might be a good idea to find out from your lender if this will negatively impact your FICO scores.

-- CNN's Jen Haley contributed to this article.