If you’re worried about having enough money to buy a house, you may be able to get your hands on more money than you think. The average tax refund received in 2024 was $2,948. Here are four ways such a windfall could help you land your dream home by next summer.
Use it for a downpayment. One of the biggest barriers to homeownership is saving enough money for a downpayment. But it doesn’t have to be that way. For one thing, you may be able to qualify for free money by taking a Homebuyer Education Course. If you don’t qualify for enough in free money to take care of your entire downpayment, your tax refund may be able to take care of the rest.
Use it for closing costs. Many fees come with the homebuying process, such as home inspection, title insurance, and underwriting expenses. You might be able to pay for some of them with free money. In fact, HomeFree-USA helped one homebuyer find $39,000 in free money for downpayment and closing costs. Your tax refund can go toward the remaining fees.
Use it to reduce your debt load. You might be able to get all your downpayment and closing costs taken care of via homebuyers’ programs. Another way your tax refund can help fuel your homeownership dream is if you use it to pay off debts. Doing so would likely increase your credit score, which could get you more favorable terms on a mortgage loan.
Use it to pad your savings. Say you don’t need your tax refund for your downpayment or closing costs, and you’re not in any debt. Then maybe you can use the refund to boost your savings account. Once you buy your home, you’ll likely want to splurge at some point on furniture or other home décor. You might decide to use that money then.
Tax time doesn’t have to be a dreaded event. This year, let your tax refund be a springboard to homeownership. Schedule a call with an expert to make 2025 the year you become a homeowner.
