If you've dreamed of buying a home but the down payment is a financial obstacle, now is a good time to take a second look. It's 2018 tax refund time and the average refund this year is approximately $3,000. That could be enough money to help you fulfill your homeownership dream.
Our REALTORS® understand that a down payment can be one of your biggest obstacles to buying a home in North Carolina. It's difficult to meet day-to-day living expenses and save money too. Your income tax refund can give you a reprieve from all that scrimping and saving. Here are a few tips to make it work for you.
Hands off the money!
If you intend to use your tax refund to qualify for a home loan, take the auto-deposit option. From the moment the money hits your account, forget that it's there.
When you're using your tax refund to qualify for a mortgage, your loan officer will want to confirm the dollar amount and that it's actually available. If you withdraw it for whatever reason, the mortgage company won't be able to verify your financial information.
Non-traditional Financing Options
Your tax refund might not cover the down payment required for a traditional mortgage. But it's enough to give you access to several non-traditional financing options. Ask your lender about these home mortgage programs with low to no down payment requirements and reduced credit and income qualifications.
Down Payment Grants
If your tax refund isn't high enough for an adequate down payment, you may qualify for a down payment grant. Search for down payment assistance programs in your city or state.
If you qualify for a no money down loan
If you receive a down payment grant or qualify for a no down payment loan, you should still think carefully before cashing out your tax refund. It can serve several useful purposes.
If you want to know more about meeting the challenges of buying a home, we can help. Contact Margaret Rudd & Associates, Inc. if you're buying or selling a home in the North Carolina communities we serve.