It’s Tax Season Use Your Refund & Jump Start Down Payment Savings!

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Real Estate Agent with Real Estate Technology Partners 2004010624

Its Tax Season.Use your refund for your down payment

It’s Tax Season… Use Your Refund to Jump Start Your Down Payment Savings!

According to data released by the Internal Revenue Service (IRS), Americans can expect an estimated average refund of $2,840 this year when filing their taxes. This is down slightly from the average refund of $2,895, last year.

Tax refunds are often thought of as ‘extra money’ that can be used toward larger goals; for anyone looking to buy a home in 2018, this can be a great jump start toward a down payment!

The map below shows the average tax refund Americans received last year by state. (The refunds received for the 2017 tax year should continue to reflect these numbers as the new tax code will go into effect for 2018 tax filings.)

Average tax refund by state

 

 As you can see, our average tax refund here in Ohio, is $2,465. And our median home sales price here in Columbus is $205,779. Most of our loans that require a 3% down payment would be $6,173. A first time home buyer would be almost half way to their down paymant needs by using their tax refund. Makes total sense to me. 

 Many first-time buyers believe that a 20% down payment is required to qualify for a mortgage. Programs from the Federal Housing Authority, Freddie Mac, and Fannie Mae all allow for down payments as low as 3%, with Veterans Affairs Loans allowing many veterans to purchase a home with 0% down.

Amount of down payment covered by tax refund

 

The darker the blue, the closer your tax refund gets you to homeownership! For those in Alabama looking to purchase their first homes, their tax refund could potentially get them 69% closer to that dream! Here in Ohio and particularly Columbus, it is 64%. 

Bottom Line

Saving for a down payment can seem like a daunting task. But the more you know about what’s required, the more prepared you can be to make the best decision for you and your family! This tax season, your refund could be your key to homeownership!

 

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