Using Your Tax Refund As A Down Payment

Using Your Tax Refund as a Down Payment

It’s getting to be that time of year again when we all have to start thinking about our taxes. It seems like most people dread filing for taxes and figuring out if they owe money. However, homeownership may be one step closer than you think if you spend your tax refund wisely this year.

How Can My Tax Refund Help?

Truthfully, taxpayers get the raw end of the deal when it comes to tax refunds. After all, the government is giving you back your money without any interest payment. Therefore, many tax experts say people should actually be shooting for no tax refund at all. That way, you can invest all of your money and receive interest payments. However, if you know you’re not great at saving money, your refund is a great way to create some forced savings. So when you get it back, you don’t want to waste that “bonus.”

A great use for your tax refund is putting it towards a down payment. This year, in California, the average taxpayer is expected to get $2,805 back. While that may not feel like a lot, it can be a great start towards a down payment. Especially if you plan on using a low or no down payment mortgage program.

If you’d like to learn more about down payment assistance in California, please reach out. We have helped a number of clients buy homes with very little money down. For more information, give us a call at 562.896.2456.

Should You Always Use Your Tax Refund as a Down Payment?

Even if homeownership is one of your future goals, that doesn’t always mean you should use your tax refund towards a down payment. First, make sure you have enough money to pay down your debts and immediate bills. You should also have a few months of an emergency fund saved up. After that, consider setting aside your refund money to start saving for your down payment or set it aside for closing costs.

Keep in mind though, that it’s not just money you need to think about. Below is a video that can help you get financially ready to buy a home.

Next Steps to Homeownership

Saving for a down payment can seem like a daunting task. However, the more you know about what’s required, the more prepared you’ll be to make the best decision for you and your family. This tax season, your tax refund could be your key to homeownership if you just need a financial boost. Or, it can be the start of savings to apply towards homeownership. Either way, you will be one step closer to your goals.

If you’re curious about where you stand in comparison to your homeownership goals, give us a call! We can refer you to a lender who can check on your credit score, your savings, and see how much you qualify for. If you’re not quite ready to buy a home, they can help put you on track and set goals to reach homeownership. We can be reached at 562.896.2456 or you can fill out the form below. We look forward to assisting you!

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About the Author

Shannon Jones has been selling real estate since 1998 and specializes in listing and marketing homes. She has consistently been one of the top Realtors in the Long Beach area. Prior to her award-winning career in real estate with the Shannon jones Team, Shannon has had successful careers in journalism and public relations. She holds a bachelors degree from UC Irvine and a masters degree from UC Berkeley. Shannon holds E-Pro, CDPE (Certified Distressed Property Expert), and PSC (Pre-Foreclosure Specialist) certifications. Shannon is very personable and maintains a very strong moral compass, always putting the best interest of home buyers/sellers above monetary goals. A California native, Shannon enjoys gardening, travel, reading, cooking and poker when she’s not selling homes MY DESIGNATIONS Lic# 01247705 | CDPE (Certified Distressed Property Expert) | E-Pro | PSC (Pre-Foreclosure Specialist) MY SERVICE AREAS Anaheim Bellflower Buena Park Carson Cerritos Cypress Downey Fountain Valley Garden Grove Huntington Beach La Palma Lakewood Long Beach Los Alamitos Los Angeles County Norwalk Orange County Rossmoor San Pedro Seal Beach Signal Hill South Bay Westminster

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