The Jersey Shore by Karl Hess

Your Tax Refund as a Start Towards Home Ownership

Home Down Payment

Wondering how to use your tax refund? Maybe a vacation or a new car? Perhaps a better idea is that you could use your reimbursement to build your savings towards your home down payment! Even if you're NOT getting a refund, you can STILL buy a home in certain parts of Ocean County with ZERO money down!

Search for Homes in Ocean County

According to data released by the Internal Revenue Service (IRS), Americans can expect an estimated average refund of $2,840 this year when filing their taxes. This is down slightly from the average refund of $2,895, last year.

Tax refunds are often thought of as ‘extra money’ that can be used toward larger goals; for anyone looking to buy a home in 2018, this can be a great jump start toward a down payment!

The map below shows the average tax refund Americans received last year by state. (The refunds received for the 2017 tax year should continue to reflect these numbers as the new tax code will go into effect for 2018 tax filings.)

Average Tax Refund

Many first-time buyers believe that a 20% down payment is required to qualify for a mortgage. Programs from the Federal Housing Authority, Freddie Mac, and Fannie Maeall allow for down payments as low as 3%, with Veterans Affairs Loans allowing many veterans to purchase a home with 0% down. 

Ocean County First Time Home Buyer Programs

If you started your down payment savings with your tax refund check this year, how close would you be to a 3% down payment?

The map below shows what percentage of a 3% down payment is covered by the average tax refund by taking into account the median price of homes sold by state.

3% Down

The darker the blue, the closer your tax refund gets you to homeownership!For those in Alabama looking to purchase their first homes, their tax refund could potentially get them 69% closer to that dream!

Not getting a refund? You can STILL buy a home in parts of Ocean County with ZERO money down with the USDA home loan program!

A USDA home loan is a zero down payment mortgage for eligible rural and suburban homebuyers (i.e. from Lacey Twp to Barnegat to Manahawkin). USDA loans are issued through the USDA loan program, also known as the USDA Rural Development Guaranteed Housing Loan Program, by the United States Department of Agriculture

Advantages of the USDA Home Loan Guaranteed Program:

  • 100% financing
  • No down payment requirement
  • No Mortgage Insurance
  • No Cash Reserves Required
  • Loan up to 101% of appraised value
  • Seller Contributions Limited to 6%

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 can be to make the best decision for you and your family! This tax season, your refund could be your key to homeownership!

Karl Hess & Keller Williams Shore Properties provides expert real estate services to residential buyers and sellers in Barnegat. Contact us today for more information on Ocean County Real Estate and for professional assistance navigating this complex home market.

As always, thank you for your time and feel free to get in touch if you have any questions. Karl Hess, Keller Williams Shore Properties - #1 Real Estate Office in Ocean County

 

 

 609-553-7926

Find Your Dream Home on The Jersey Shore in Ocean County!

www.TheJerseyShoreHomeFinder.com

 

 Licensed in New Jersey.  Keller Williams Shore Properties 

1400 Hooper Ave. Toms River NJ 08753 Phone: 732-797-9001

 

 

 

Comment balloon 2 commentsKarl Hess • March 01 2018 12:08AM
Your Tax Refund as a Start Towards Home Ownership
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