Your Tax Refund and Stimulus Savings May Help You Achieve Homeownership This Year

<article class="post-2086 post type-post status-publish format-standard has-post-thumbnail hentry" id="post-2086"><span class="entry-date">April 5, 2021</span><div class="entry-header center-block text-center"><h1 class="entry-title">Your Tax Refund and Stimulus Savings May Help You Achieve Homeownership This Year</h1><div class="shareBlock"><div class="shareTitle">Share</div><div class="shareIcons"><a aria-label="Twitter Share Link" class="twitter solid display-inline-block" data-tracking="Post,Social Post Link Clicked,Twitter" href="http://twitter.com/share?text=Your+Tax+Refund+and+Stimulus+Savings+May+Help+You+Achieve+Homeownership+This+Year&amp;url=https%3A%2F%2Fgilliggroup.com%2Fblog%2Fyour-tax-refund-and-stimulus-savings-may-help-you-achieve-homeownership-this-year%2F" target="_blank"><span class="force-hidden">Twitter</span></a>
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<p><img alt="Your Tax Refund and Stimulus Savings May Help You Achieve Homeownership This Year | Simplifying The Market" class="webfeedsFeaturedVisual wp-post-image" decoding="async" link_thumbnail="" loading="lazy" sizes="auto, (max-width: 549px) 100vw, 549px" src="https://files.simplifyingthemarket.com/wp-content/uploads/2021/04/01141546/20210405-KCM-Share-549×300.jpg" srcset="https://files.simplifyingthemarket.com/wp-content/uploads/2021/04/01141546/20210405-KCM-Share-549×300.jpg 549w, https://files.simplifyingthemarket.com/wp-content/uploads/2021/04/01141546/20210405-KCM-Share.jpg 750w" style="display: block; margin-bottom: 5px; clear:both;max-width: 100%;" width="358"/></p>
<p>If you’re planning to buy a home this year, saving for a down payment is one of the most important steps in the process. One of the best ways to jumpstart your savings is by starting with the help of your tax refund.<span id="more-44131"></span></p>
<p>Using data from the <em>Internal Revenue Service </em>(IRS), it’s estimated that Americans can expect an average refund of <a href="https://smartasset.com/taxes/tax-return-calculator?year=2021#us/taxReturn">$2,925</a> when filing their taxes this year. The map below <a href="https://smartasset.com/taxes/tax-return-calculator?year=2021#us/taxReturn">shows</a> the average anticipated tax refund by state:<a href="https://files.simplifyingthemarket.com/wp-content/uploads/2021/04/01141551/20210405-MEM-Eng-1.png"><img alt="Your Tax Refund and Stimulus Savings May Help You Achieve Homeownership This Year | Simplifying The Market" class="aligncenter wp-image-44134" decoding="async" height="488" loading="lazy" sizes="auto, (max-width: 650px) 100vw, 650px" src="https://files.simplifyingthemarket.com/wp-content/uploads/2021/04/01141551/20210405-MEM-Eng-1.png" srcset="https://files.simplifyingthemarket.com/wp-content/uploads/2021/04/01141551/20210405-MEM-Eng-1.png 1000w, https://files.simplifyingthemarket.com/wp-content/uploads/2021/04/01141551/20210405-MEM-Eng-1-400×300.png 400w" width="650"/></a>Thanks to programs from the <em>Federal Housing Authority, Freddie Mac, </em>and<em> Fannie Mae, </em>many first-time buyers can purchase a home with as little as 3% down. In addition, <em>Veterans Affairs Loans</em> allow many <a href="https://www.simplifyingthemarket.com/2020/11/06/making-a-home-for-the-brave-possible-infographic/?a=712984-fa409495d5d70154d03a25e81e9540e2">veterans</a> to put 0% down. You may have heard the common myth that you need to put 20% down when you buy a home, but thankfully for most homebuyers, a <a href="https://www.simplifyingthemarket.com/2021/02/03/do-i-really-need-a-20-down-payment-to-buy-a-home/?a=712984-fa409495d5d70154d03a25e81e9540e2">20% down payment</a> isn’t actually required. It’s important to work with your real estate professional and your lender to understand all of your options.</p>
<h4><strong>How can your tax refund help?</strong></h4>
<p>If you’re a first-time buyer, your tax refund may cover more of a down payment than you realize.</p>
<p>If you take into account the median home sale price by state, the map below shows the percentage of a 3% down payment that’s covered by the average anticipated tax refund:<a href="https://files.simplifyingthemarket.com/wp-content/uploads/2021/04/01141548/20210405-MEM-Eng-2.png"><img alt="Your Tax Refund and Stimulus Savings May Help You Achieve Homeownership This Year | Simplifying The Market" class="aligncenter wp-image-44133" decoding="async" height="488" loading="lazy" sizes="auto, (max-width: 650px) 100vw, 650px" src="https://files.simplifyingthemarket.com/wp-content/uploads/2021/04/01141548/20210405-MEM-Eng-2.png" srcset="https://files.simplifyingthemarket.com/wp-content/uploads/2021/04/01141548/20210405-MEM-Eng-2.png 1000w, https://files.simplifyingthemarket.com/wp-content/uploads/2021/04/01141548/20210405-MEM-Eng-2-400×300.png 400w" width="650"/></a>The darker the blue, the closer your tax refund gets you to homeownership when you qualify for one of the low down payment programs. Maybe this is the year to plan ahead and put your tax refund toward the down payment on a home.</p>
<h4><strong>Not enough money from your tax return?  </strong></h4>
<p>A recent <a href="https://www.nber.org/system/files/working_papers/w27693/w27693.pdf">paper</a> from the <em>National Bureau of Economic Research</em> found that, of the households that received a stimulus check last year, <em>“One third report that they primarily saved the stimulus money.”</em> If you had the opportunity to save your <a href="https://www.consumerfinance.gov/about-us/blog/guide-covid-19-economic-stimulus-checks/#qualify">Economic Impact Payments</a>, you may consider putting that money toward your down payment or <a href="https://www.simplifyingthemarket.com/2019/12/09/have-you-budgeted-for-closing-costs/?a=712984-fa409495d5d70154d03a25e81e9540e2">closing costs</a> as well. Your trusted real estate professional can also advise you on the down payment assistance programs available in your area.</p>
<h3><strong>Bottom Line</strong></h3>
<p>Saving for a down payment can seem like a daunting task, but it doesn’t have to be. This year, your tax refund and your stimulus savings could add up big when it comes to reaching your homeownership goals.</p>
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