Bryan, TX

Wouldn't that be really nice?

You could file for the $8,000 first time home buyers' tax credit or $6,500 move-up/repeat home buyers' credit and then when you receive the money, go find a house and buy it and use the money you just received for the down payment. Sounds like a great deal.

However, if that was the case then it would probably be called the "Pre down payment advance, on the chance you'll buy for at least $80,000 and qualify, credit"

I can imagine the fraud department at the IRS having a lot of fun with that one!

But just because you can't get the credit in advance and then close on a home after you receive the check in hand, doesn't mean that your can't use the expectation of qualifying for the credit as collateral for a loan, which you can then use for the down payment.

There's a few ways to go about this.

1. You can use borrowed money from a family member or friend as the down payment and then after you close on a house and receive the rebate check you can then repay the loan. This of course is not without perils for the family member as they would need to make sure that you first qualify for the rebate and secondly that you will actually repay the loan once you receive the money. For each parties protection I would advise the use of both an attorney and a tax accountant. This is not a route I would encourage as many families and friendships have fallen apart over ‘good intention money borrowing'.

2. You can reduce the amount of income tax withholding up too $8,000 / $6,500 that is deducted from your paycheck each pay period and by accumulating this increased amount of take-home pay you can save the necessary funds for the down payment. By contacting your employer you would be adjusting the amount of income tax withholding on your W-4 or you could reduce the amount paid in your quarterly estimated tax payment. Again there are perils with this option. If you reduce the amount of income tax withholding paid during the year and the purchase does not occur at all or on time, then you would be liable for all of the payments due plus possibly interest and penalties. Alternatively you may not truly qualify for the credit and then you would still owe back income tax withholding plus penalty and interest. I would strongly advise consulting with your tax accountant before taking this route.

3. The safest option, if available in your state, is the Housing Finance Agency First Time Home Buyer Tax Credit Loan Program. Essentially the Housing Finance Agency (HFA) in your state will loan you up to the credit limits, provided you qualify for the credit, so that you can use this money as a down payment and/or closing costs. Most of these loans are short term, approximately 90 days and charge little or no interest.

Texas Department of Housing and Community Affairs (TDHCA) has such a program. This money can be used towards the down payment and/or closing costs for the purchase of a home and once you file and receive the rebate then you can use it to repay the loan. If however you don't repay the loan within the time prescribed then the penalties can be fairly high with monthly payments spread out over 2 years at 10% interest. More information regarding the Texas Statewide Second Lien Repayable Down Payment Assistance Loan Programs

Several other states also have similar programs available.

These states include

Colorado Colorado Housing and Finance Authority

Delaware Delaware State Housing Authority

Idaho Idaho Housing and Finance Association

Illinois Illinois Housing Development Authority

Kentucky Kentucky Housing Corporation

Maine Maine Housing

Massachusetts Mass Housing

Missouri Missouri Housing Development Commission

Nebraska Nebraska Investment Finance Authority

New Jersey New Jersey Housing and Mortgage Finance Agency

New Mexico New Mexico Mortgage Finance Authority

Ohio Ohio Housing Finance Agency

Oklahoma Oklahoma Housing Finance Agency

Pennsylvania Pennsylvania Housing Finance Agency

South Dakota South Dakota Housing Finance Agency

Tennessee Tennessee Housing Development Agency

Virginia Virginia Housing Development Authority

It is expected that this list will be expanded as more states create similar programs.

So In short the answer to the questions is yes, you can use the home buyers tax credit for a down payment or closing costs however it needs to be used indirectly.

For more questions answered regarding the first time / repeat home buyers tax credit read What is the home buyers tax credit catch? And Do I have to repay the home buyers tax credit?

Happy Fall!

A couple of weeks ago I had the pleasure of attending Be Green in Bryan's Greening Your Home 101 workshop, upstairs at the Bryan Public Library. Taught by Mary Strauss, the City of Bryan's Sustainability Program Coordinator, the workshop provided ten realistic, helpful suggestions that will help our environment and save you money.

I'm about to throw a lot of links at you. Most go to information located on BeGreenInBryan.com, which is a site worth visiting. On that site, if you click on the symbols on the left side of the page for a wealth of information on each subject.

Ten things YOU can do in the home to help our environment and save money.

1. Cut junk mail. Americans pay $320-$370 million per year to dispose of junk mail. Save 1.5 trees/person/year by visiting http://optoutprescreen.com or http://mailstopper.tonic.com.

2. Stop accepting or using plastic grocery bags. We throw away 100 billion polyurethane bags annually. Despite appearances, these bags are so cheap that they offer nothing to break down, and actually end up in landfills. If you have extras, the Brazos Valley Farmer's Market is happy to take and reuse them.

3. Reduce, Reuse & Recycle - On average, American consumers purchase 500 million beverage bottles and cans every day. Only one in three get recycled. Bryan's drop-off recycling center is located in the Wal-mart parking lot. You don't even need to get out of your car!

4. Rid your home of pesticides - Over 80% of human contact with pesticides occurs indoors. 90% of those tested had traces of 5-16 pesticides in their bodies. Check out http://beyondpesticieds.org.

5. Green the Garden - Use compost instead of synthetic fertilizers. The Bryan Compost Facility sells compost for $21/ton and mulch is FREE! Concentrate on native plants and perennials. You can find a selection at the Brazos Valley Farmer's Market.

6. Turn off lights and unplug appliances when possible. Reduce phantom power or energy vampires - Up to 40% of the power used by home electronics is consumed while the products are turned off. Standby power consists of 10% of our total power consumption.

7. Replace standard light bulbs with CFL's and LED's - CFL's use 50%-80% less energy and last up to ten times longer. Some LED's have a 60,000 hour useful life.

8. Look for EnergyStar Appliances - These appliances use 2-10 less power than their conventional conterparts. Check out http://energystar.gov.

9. Reduce Water Consumption - Look for leaks, and make sure all faucets have aerators for indoor conservation. Consider low-flow toilets. Catch rainwater for outdoor use.

10. Replace household cleaners - Over 90% of reported poisonings occur at home, with the leading reported cause being household cleaners. Many chemicals found in household cleaners are known carcinogens. Natural alternatives are in most stores. Why? They are more economical, biodegradable and more healthy for you!

    

Now, some of these suggestions are easier said then done, but the point is to work on what you can, when you can, and keep moving in a more sustainable direction.

To help us along the way, Mary had the back of the room set up as an organic household cleaner factory, complete with ingredients, fragrances and delivery systems. We got to see and feel how to make these very inexpensive cleaners, and knew what to look for when shopping.

I give the City of Bryan credit for having Mary on board. She is an expert in her field, and charged with several different tasks, all benefiting both the environment and our pocketbooks.

This workshop was the third in a series of five for 2009. I missed the first two, Rainwater Harvesting 101 and Worm Composting 101. There are two more:

• Home & Energy Efficiency 101 on Nov. 5
• Green Living 101 on Dec. 1

You can view the flyer and register here.

Sustainability makes sense. We can do small things that make a difference. I'll visit more about this later.

Blue skies,

Sam White
SamWhiteRealty.com
979.446.0031

Bryan's Green Team

Great location for stidents and working professionals, 2 bedrooms and one bath, totally updated with tile, granite counters, new light fixtures, kitchen, etc. Kitchen appliances convey with accepted offer. Furniture is negotiable. This property is ready for move-in. To directly access this property, use this shortcut: http://www.fizber.com/texas-buy-condo-townhome-co-op-home-11649100.html

Sample Media Release

Texas Recycles Day (TRD), takes place every year on November 15, and aims to raise public awareness of the economic and environmental benefits of recycling. The Theme for "Texas Recycles Day" is "It all comes back to you", with an emphasis on Reduce, Reuse, Recycle, Rebuy.

The State of Texas Alliance for Recycling and Keep America Beautiful are helping to motivate Texans to make recycling part of their everyday lives. Recycling not only decreases the amount of garbage thrown away each year, but it also conserves natural resources, saves energy, and reduces the amount of landfill space used each year. Though reduce, recycle, rebuy, "It all comes back to you."

Texas Recycles Day and America Recycles Day events range from providing educational materials to hosting a collection for recyclables and making sure they get reused or sent to the appropriate recycling center. Any individual, civic group, youth organization, or company can participate.

Help us teach Texans to make recycling part of their everyday lives! For more information on the TRD program, visit www.texasrecyclesday.org.

Have you just bought a new home or are you considering selling your current home? Does your yard or garden need a little TLC only you just can't afford to spend too much? Well courtesy of the City of Bryan, Texas you won't have to dig too deep into your pockets!

Did you know that woodchips are free?

How many times have you bought 50lb sacks of woodchips for your flower beds or around trees? How much have you paid for all those sacks? Did you know that you can get woodchips from the City of Bryan for free?

You can pull up to the City of Bryan's compost facility and get as much woodchips as you need and as they can provide for free.

Did you know that you can purchase compost at a fraction of the cost found elsewhere at the same facility?

1-25 tons at $28.00 per ton and 26+ tons for $20.00 per ton.

The bio-solids are tested quarterly to make sure that they meet all Texas Commission of Environmental Quality (TCEQ) standards, they are also processed to meet the State of Texas Process to Further Reduce Pathogens (PFRP) guidelines. The finished product is also tested quarterly in order to meet guidelines.

So take a look at your yard or garden and see if it needs to have compost or wood chips added and if so then head over to The City of Bryan's Compost facility and do a little recycling of these natural products and safe a little money in the process.

So where is all this good stuff located?

The Bryan Compost Facility is located at 2988 Pleasant Hill Rd, Bryan, TX 77807

They are open Monday - Friday from 8:00 am - 5:00 pm and on Saturdays from 7:30 am - 3:30 pm.

http://www.bryantx.gov/resources/Recyling_Compost_FAQ.pdf