Can I Use My Tax Refund to Qualify for a Loan?

By
Mortgage and Lending with The Mortgage Experts at America's Mortgage, a Division of Cherry Creek Mortgage Co. NMLS #241555

Tax time is approaching and many buyers are asking if they can count their tax refund when qualifying for a mortgage.  The answer is yes.  Tax refunds are a legitimate source of funds for a down payment, closing costs, or reserves (money a lender may require a borrower to have left over after the closing).  

The only restriction is that the refund needs to be received and deposited in the borrower's bank account prior to the closing.  It does not have to be received before the borrower can apply for the loan.

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Topic:
Lending / Financial
Location:
Colorado
Tags:
tax refund
mortgage tips

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Rainmaker
249,620
Scott Guay
Berkshire Hathaway Home Services PenFed Realty - Ocean Pines, MD
Associate Broker. Ocean City and Ocean Pines MD

That is good news we need to pass along to our buyers that they may not know.

Jan 22, 2009 01:01 AM #1
Ambassador
1,549,803
Karen Fiddler, Broker/Owner
Karen Parsons-Fiddler, Broker 949-510-2395 - Mission Viejo, CA
Orange County & Lake Arrowhead, CA (949)510-2395

This is not to be confused with the tax "refund" of $7500 for qualifying first time home buyers. I get that too.

Jan 22, 2009 01:08 AM #2
Rainer
146,688
Caren Wallace
Premier Property Group LLC - Tualatin, OR
Portland Caren Real Estate

Tax season has always been a boon to our buyers who receive refunds! First time buyers need to know this and take advantage of the great buys out there now and the fantastically low interest rates that are being offered now! THE TIME IS RIGHT TO BUY A HOME!!!!!

Jan 22, 2009 01:15 AM #3
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Rainmaker
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Chris Thomas

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