Realtor Michael Mahoney in Boston with eXp Realty
Michael Mahoney
617-615-9435617-615-9435

Can I use My Tax Refund to Purchase a Home?

Tax Refunds to Buy a House?

Can You Use Your Tax Refund to Buy a House?

“I’D LIKE TO PUT MY TAX REFUND TOWARDS MY DOWN PAYMENT, BUT I KNOW THAT THE FUNDS FOR MY DOWN PAYMENT NEED TO BE IN MY ACCOUNT WELL BEFORE MY LOAN CLOSES. WILL THIS BE A PROBLEM?”

Typically, loan specialists require that your initial installment be “sourced and seasoned.” What does that mean? Having sourced simply means that you can give a paper trail of where the cash originated from. You must be prepared to show that assets and reserve have been in your possession for a specific time allotment, typically between 60-90 days, contingent upon your loan companies underwriting policies.

However, funds from tax refunds are treated differently. Your tax refund is considered to be seasoned as soon as the deposit is made into your bank.

As for being sourced, although you will be required to provide a copy of the check and proof of the deposit, you won’t need to show two or three months’ worth of bank statements as proof. Keep in mind that this will only apply to the portion of your down payment that comes directly from your refund. If you have other funds that you’re using to contribute to your down payment, those funds must be sources and seasoned per your lender’s policies.

For more information about your down payment, contact a good mortgage professional.

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Reviews

5suzannechapman1208

I selected Mike after having a very unsuccessful experience with a previous broker. He had excellent ideas in helping to sell my house and continued to advertise it with a fresh perspective. His experience helped in a number of ways and I only wish we had... (more)

5goodlife99

This is the second property I have sold in Weymouth MA with Mike as my broker. He research the area and give you all the information you need to decide what to list your property for, so it sells timely. He also helps review and negotiate all offers and is... (more)

5SullyLemmons

We had been trying to sell our condo for well over a year and decided to give Mike a shot at it as he came well recommended. It was not easy for him but he persisted and had success. Even though it wasn't a big sale or profit for him, he acted as though it... (more)

Review Michael Mahoney on Zillow.com

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