As we make relations with lenders, and expand those we have had over the years in Denver, we find that there are new and innovative loan programs available for buyers of all types. Some are obvious like the VA zero down. Others you have to hunt for like a 1% down conventional product. And they go up from there. Yet all the new ones might be helped by a good income tax refund...maybe, after you read this we should talk.
One of the silver linings to filing your income tax return is finding out that you are going to receive a refund. If you happen to be one of these fortunate taxpayers, your next decision is what to do with it. With the average tax refund around $3,000, it could be the difference that makes a home a reality sooner rather than later.
Many would-be buyers think it takes 10% or more down payment to purchase a home, but actually, it can be much less. There are VA and USDA mortgages that have no down payment for qualified buyers. FHA has a 3.5% down payment program and FNMA has 3% down payment mortgages for qualified creditors.
Closing costs for originating new mortgages can easily range from two to three percent of the purchase price but most lenders will allow the seller to pay part or all of them based on the agreement in the sales contract.
While the average tax refund might not cover the down payment on the median price home, it certainly helps. Your refund could make it as simple as 1-2-3 to get into a home.
- Get the hard, cold facts for the homes and mortgages in your area and price range.
- Get pre-approved with a trusted mortgage professional.
- Start looking at homes.