Tax Refund Used as a Down Payment to Buy a Home
During tax season, refunds help so many become homeowners!
If I Use a No Money Down Home Loan to Buy, Can I Spend My Tax Refund?
3. Pay off debts to help qualify (talk to us before paying off a debt or collection!)
4. Keep the refund in the bank as reserves. More reserves equals better chance of approval
5. Pay down credit card balances to raise credit scores
6. Have money for furniture, curtains, or an emergency fund as a homeowner
Can I Apply Now for a Mortgage Even Though I Do Not Have my Refund Yet?
No down payment loans such as USDA or VA are great options. Believe it or not, these loan payments may even be lower per month than loans which require a down payment. So we will review these potential options as well for you.
In summary, let’s make sure you know all of your options before spending your tax refund. You many not even have to spend it at all!
Mortgage Products Available for First Time Buyers Offering Low to No Down Payment
2. VA – Usually no down payment required. Depends on entitlement amount, purchase price, and county limit
3. FHA – 3.5% down payment