Are you looking to buy a home in 2020?
How about putting your tax refund toward a down payment? Homeownership may be one step closer than you think if you spend your dollars wisely this year.
According to data released by the Internal Revenue Service (IRS), Americans can expect an estimated average refund of $2,962 when filing their taxes this year.
The map above shows the average tax refund Americans received last year by state. According to programs offered by the Federal Housing Authority, Freddie Mac, and Fannie Mae, many first-time home buyers can purchase a home with as little as 3% down.
If you’re a first-time home buyer, your tax refund may cover more of the down payment than you thought possible.
If you factor in the median home sale price by state, the map below shows the percentage of a 3% down payment that’s covered by the average tax refund:The darker the shade of blue, the closer your tax refund gets you to homeownership in one of these programs. Maybe this is the year to plan ahead and put your tax refund toward a down payment on a home.
Saving for a down payment can seem like a daunting task, but the more you know about what’s required, the better prepared you’ll be to make the best decision for you and your family. This tax season, your refund could be your key to home ownership.