{"id":2550,"date":"2022-04-18T08:00:20","date_gmt":"2022-04-18T13:00:20","guid":{"rendered":"https:\/\/blog.veteransloans.com\/?p=2550"},"modified":"2025-12-19T09:02:14","modified_gmt":"2025-12-19T15:02:14","slug":"5-ways-to-use-your-tax-return-to-buy-a-home","status":"publish","type":"post","link":"https:\/\/www.veteransloans.com\/resources\/5-ways-to-use-your-tax-return-to-buy-a-home\/","title":{"rendered":"5 Ways to Use Your Tax Return to Buy a Home"},"content":{"rendered":"[et_pb_section fb_built=&#8221;1&#8243; _builder_version=&#8221;4.16&#8243; _module_preset=&#8221;default&#8221; background_color=&#8221;#00ad5d&#8221; custom_margin=&#8221;0px|0px|0px|0px|false|false&#8221; custom_padding=&#8221;0px|0px|0px|0px|false|false&#8221; global_colors_info=&#8221;{}&#8221;][et_pb_row _builder_version=&#8221;4.16&#8243; _module_preset=&#8221;default&#8221; background_color=&#8221;#FFFFFF&#8221; global_colors_info=&#8221;{}&#8221;][et_pb_column type=&#8221;4_4&#8243; _builder_version=&#8221;4.16&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221;][et_pb_post_title _builder_version=&#8221;4.16&#8243; _module_preset=&#8221;default&#8221; title_font=&#8221;|700||on|||||&#8221; title_text_align=&#8221;center&#8221; title_font_size=&#8221;29px&#8221; meta_font=&#8221;|||on|||||&#8221; meta_text_align=&#8221;center&#8221; background_color=&#8221;#FFFFFF&#8221; text_orientation=&#8221;center&#8221; min_height=&#8221;250px&#8221; height=&#8221;100%&#8221; custom_padding=&#8221;100px|15px|100px|15px|false|false&#8221; global_colors_info=&#8221;{}&#8221;][\/et_pb_post_title][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=&#8221;1&#8243; _builder_version=&#8221;4.16&#8243; global_colors_info=&#8221;{}&#8221;][et_pb_row _builder_version=&#8221;4.16&#8243; background_size=&#8221;initial&#8221; background_position=&#8221;top_left&#8221; background_repeat=&#8221;repeat&#8221; global_colors_info=&#8221;{}&#8221;][et_pb_column type=&#8221;4_4&#8243; _builder_version=&#8221;4.16&#8243; custom_padding=&#8221;|||&#8221; global_colors_info=&#8221;{}&#8221; custom_padding__hover=&#8221;|||&#8221;][et_pb_text _builder_version=&#8221;4.27.4&#8243; background_size=&#8221;initial&#8221; background_position=&#8221;top_left&#8221; background_repeat=&#8221;repeat&#8221; hover_enabled=&#8221;0&#8243; global_colors_info=&#8221;{}&#8221; sticky_enabled=&#8221;0&#8243;]\n<p>As tax season comes to a close and you anticipate receiving your tax return, you might already be making plans for how you want to use that extra cash!<\/p>\n<p>It\u2019s no surprise that the end of tax season typically kicks off the busiest home-purchasing season of the year because there are so many ways you can use your tax return to fund your home purchase. If you are preparing to buy a home this spring, here are a few ways you can use your tax return to help fund your home purchase!<\/p>\n<h2>Earnest Money Deposit<\/h2>\n<p>An earnest money deposit is one great way to use your tax refund! When making an offer on a home, it\u2019s important to provide an earnest money deposit. This demonstrates to the seller that you are serious about buying their home. An earnest money deposit is typically 0.5% to 1% of the entire purchase price of the home, though this can vary with each local region.<\/p>\n<h2>Down Payment<\/h2>\n<p>Put your tax return toward <a href=\"https:\/\/www.veteransloans.com\/resources\/down-payment-options\/\">a down paymen<\/a>t on a house! A down payment can cost 0% to 20% or more of the loan amount, depending on the type of loan you are purchasing your home with. If you are purchasing your home with a VA loan or a USDA loan, a down payment is not necessary but can still be beneficial in lowering your debt-to-income ratio and mortgage payments.<\/p>\n<p>If you are purchasing your home with an FHA loan, you will need to make a down payment of at least 3.5%, and if you are purchasing your home with a Conventional loan, you will need to make a down payment of at least 3%. This means if you are purchasing a home for $275,000, you will want to have at least $8,250 for a down payment.<\/p>\n<h2>Emergency Fund<\/h2>\n<p>Give yourself a head start by putting your tax return toward an emergency fund! A big expense of homeownership includes the repairs and necessary upgrades you will need to make on your house. It\u2019s important to start building your emergency fund even before you own a home!<\/p>\n<p>Typically, you will want to have 3% to 5% of the value of your home available for emergency upgrades. Saving for this emergency fund before purchasing a home will give you peace of mind and confidence when the time comes to purchase your home.<\/p>\n<h2>Closing Costs<\/h2>\n<p>You can also put your tax return toward closing costs on a home purchase. The down payment isn\u2019t the only upfront cost necessary to purchase a home! Closing costs typically amount to 1% to 3% of the value of your home loan. Closing costs are split by the buyer and seller, but there are almost always certain closing costs you as the buyer will be expected to pay.<\/p>\n<h2>How Will You Use Your Tax Return?<\/h2>\n<p>However you choose to use your tax return this year, we hope you meet all of your financial and personal goals! If you are ready to get pre-approved for a home loan, our loan specialists can determine your eligibility and get you pre-approved in a matter of minutes! <a href=\"https:\/\/www.veteransloans.com\/va-loan-prequalification\">VeteransLoans.com<\/a> offers conventional, FHA, and VA products. Call <a href=\"tel:8882321428\">1 (888) 232-1428<\/a> to speak with a loan specialist today!<\/p>\n[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section]\n","protected":false},"excerpt":{"rendered":"<p>As tax season comes to a close and you anticipate receiving your tax return, you might already be making plans for how you want to use that extra cash! It\u2019s no surprise that the end of tax season typically kicks off the busiest home-purchasing season of the year because there are so many ways you [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":2551,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"<p>As tax season comes to a close and you anticipate receiving your tax return, you might already be making plans for how you want to use that extra cash!<\/p><p>It\u2019s no surprise that the end of tax season typically kicks off the busiest home-purchasing season of the year because there are so many ways you can use your tax return to fund your home purchase. If you are preparing to buy a home this spring, here are a few ways you can use your tax return to help fund your home purchase!<\/p><h2>Earnest Money Deposit<\/h2><p>An earnest money deposit is one great way to use your tax refund! When making an offer on a home, it\u2019s important to provide an earnest money deposit. This demonstrates to the seller that you are serious about buying their home. An earnest money deposit is typically 0.5% to 1% of the entire purchase price of the home, though this can vary with each local region.<\/p><h2>Down Payment<\/h2><p>Put your tax return toward <a href=\"http:\/\/173.255.228.252\/resources\/down-payment-options\/\">a down paymen<\/a>t on a house! A down payment can cost 0% to 20% or more of the loan amount, depending on the type of loan you are purchasing your home with. This means if you are purchasing a home for $275,000, you will want to have at least $8,250 for a down payment. If you are purchasing your home with a VA loan or a USDA loan, a down payment is not necessary but can still be beneficial in lowering your debt-to-income ratio and mortgage payments.<\/p><h2>Emergency Fund<\/h2><p>Give yourself a head start by putting your tax return toward an emergency fund! A big expense of homeownership includes the repairs and necessary upgrades you will need to make on your house. It\u2019s important to start building your emergency fund even before you own a home!<\/p><p>Typically, you will want to have 3% to 5% of the value of your home available for emergency upgrades. Saving for this emergency fund before purchasing a home will give you peace of mind and confidence when the time comes to purchase your home.<\/p><h2>Closing Costs<\/h2><p>You can also put your tax return toward closing costs on a home purchase. The down payment isn\u2019t the only upfront cost necessary to purchase a home! Closing costs typically amount to 1% to 3% of the value of your home loan. Closing costs are split by the buyer and seller, but there are almost always certain closing costs you as the buyer will be expected to pay.<\/p><h2>How Will You Use Your Tax Return?<\/h2><p>However you choose to use your tax return this year, we hope you meet all of your financial and personal goals! If you are ready to get pre-approved for a home loan, our loan specialists can determine your eligibility and get you pre-approved in a matter of minutes! <a href=\"https:\/\/veteransloans.com\/prequalify\">VeteransLoans.com<\/a> offers conventional, FHA, and VA products. Call <a href=\"tel:8882321428\">1 (888) 232-1428<\/a> to speak with a loan specialist today!<\/p>","_et_gb_content_width":"","footnotes":""},"categories":[31,10,139],"tags":[],"class_list":["post-2550","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-education","category-financial","category-first-time-homebuyers"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>5 Ways to Use Your Tax Return to Buy a Home - VeteransLoans.com Articles<\/title>\n<meta name=\"description\" content=\"Learn more about 5 Ways to Use Your Tax Return to Buy a Home. 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