Tax Refund? How Your Tax Refund Can Move You Toward Homeownership This Year

Dated: March 10 2020

Views: 107

How Your Tax Refund Can Move You Toward Homeownership This Year | MyKCM

If you’re looking to buy a home in 2020, have you thought about putting your tax refund toward a down payment? Homeownership may be one step closer than you think if you spend your dollars wisely this year.

Based on data released by the Internal Revenue Service (IRS), Americans can expect an estimated average refund of $2,962 when filing their taxes this year.

The map below shows the average tax refund Americans received last year by state:How Your Tax Refund Can Move You Toward Homeownership This Year | MyKCMAccording to programs from the Federal Housing Authority, Freddie Mac, and Fannie Mae, many first-time buyers can purchase a home with as little as 3% down. Truth be told, a 20% down payment is not always required to buy a home, even though that’s a common misconception about homebuying. Veterans Affairs Loans allow many veterans to purchase a home with 0% down.

How can my tax refund help?

If you’re a first-time buyer, your tax refund may cover more of a down payment than you ever thought possible.

If you take into account the median home sale price by state, the map below shows the percentage of a 3% down payment that’s covered by the average tax refund:How Your Tax Refund Can Move You Toward Homeownership This Year | MyKCMThe darker the blue, the closer your tax refund gets you to homeownership in one of these programs. Maybe this is the year to plan ahead and put your tax refund toward a down payment on a home.

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’ll be to make the best decision for you and your family. This tax season, your refund could be your key to homeownership.

Blog author image

Sheri Edwards

I am a Texas Native that is happy to be back in God's country after 8 years out of state. I have three boys, an amazing husband, and two crazy golden doodles. My passion is making a difference in th....

Latest Blog Posts

Two Impacts of Home Equity

Equity continues to rise, helping American homeowners secure a much more stable financial future. According to the most recent data from CoreLogic, the average homeowner gained $9,800 

Read More

Are You Prepared For a Bidding War [INFOGRAPHIC]

Some HighlightsWith so few houses available on the market today, being ready for a bidding war is essential for prospective homebuyers.From pre-approval to making your best offer, here are three

Read More

Do You Need to Know More about Forbearance and Mortgage Relief Options???

Do You Need to Know More about Forbearance and Mortgage Relief Options?Earlier this year when the nation pressed pause on the economy and unemployment rates jumped up significantly, many homeowners

Read More

5 Secrets Buyers and Sellers Must Know About Virtual Home Tours!

For years now, virtual home tours have helped real estate buyers far and wide find the perfect home. From long-distance military personnel being relocated to investors expanding their portfolio to

Read More