Tax season is upon us.  For many Americans, this is a happy time as they are expecting to receive a sizable income from their tax refund. Some folks choose to use this refund to pay off debts, build up savings, go on a vacation, or simply buy themselves a new toy.  You may be shocked to learn that many first time homebuyers do not know they can use their tax refund to help purchase a home.  Depending on the size and price of the home, this can make up most if not the all of the down payment costs.

When buying a home, new borrowers are highly encouraged to utilize their tax refund versus applying for a down payment assistance program. Down payment programs may seem attractive but come with many rules and restrictions that could harm a homeowner down the road.  Below is a list of common restrictions or disadvantages if you choose to enroll in a down payment program:

  • Can work as a second mortgage on your property
  • Forces you to live in the home for a specified time or else you will have to pay back the down payment in full
  • Can keep you from refinancing your home in the future.
  • Funds can dry up depending on the budget and number of applicants

Make sure to work with a quality REALTOR® and a seasoned Loan Advisor to determine if you are financially prepared to purchase a home.

Source link

This Content is Generated from RSS Feeds, if your content is featured and you would like to be removed, please Contact Us

Tech Shop Offers

Music and Hifi Offers

Money and Loans

Get the very best deal on Loans, Credit Cards, Bank Accounts and Mortgages.

Motor Insurance Quote

Get a Quick Motor Insurance Quote and Compare from over 65 Providers.

Home Insurance and More

Compare Home Insurance from over 65 Insurance Providers to guarantee you the best deal.

Life Insurance and More

Get a Quick Life Insurance Quote and Compare Deals from UK's well known Insurance Providers.

Travel Insurance Quotes