How to Put Your Tax Refund Toward Buying a Home

Tax season might not usually spark excitement, but if you’re getting a refund, it could be exactly what you need to jumpstart your homeownership goals. Whether you’re buying your first home, planning to move, or just thinking ahead, your refund might go further than you expect.

Here are a few smart ways to put it to work.

Use it to jumpstart your down payment

Saving for a down payment is one of the biggest hurdles for buyers, especially first-time buyers. If you’re still building your savings, using your refund can give you a head start. Even a few thousand dollars could help you hit your target faster.

And you may not need to do it all on your own. Programs like Movement Boost offer down payment assistance to eligible buyers*. Your refund could help supplement that assistance or cover additional upfront costs.

Put it toward your closing costs

Closing costs are often overlooked when people think about homebuying expenses. Between the appraisal, title work, insurance, and other fees, they can add up quickly.

Your refund might be just enough to cover those expenses, which could mean less stress on your day-to-day finances when it’s time to close. Want a quick breakdown of what’s included? Check out What Are Closing Costs and Who Pays Them?

Bonus: Movement Boost helps cover a portion of closing costs too!

Pay down debt to strengthen your application

Lenders look at your debt-to-income ratio, or DTI, when you apply for a mortgage. If you lower that ratio, it could increase your chances of qualifying. Learn about how different types of debts affect your mortgage.

Using your tax refund to pay down credit card balances or personal loans could help you qualify for more or improve your loan terms. Plus, lowering your credit utilization could impact your credit score. Learn more in 6 Tips to Keep Your Credit Score Looking Good.

Prep for your next move

Already a homeowner and thinking about selling? Your refund could help with minor updates that make a big impact—fresh paint, landscaping, or small repairs that improve your listing photos and showings.

Not planning to sell just yet? You can still use your refund to prep for a future move. Think storage, a pre-listing inspection, or even setting aside funds for moving costs. If buying again is on your radar this blog can help you decide if 2025 is the right time.

Boost your emergency fund

Some buyers forget that lenders want to see a little cash left over after closing. It shows that you’re financially ready to take on homeownership.

Adding your refund to your emergency fund could help you meet that requirement and feel more secure when unexpected expenses pop up. It’s a simple way to strengthen your personal situation.

Ready to take the next step?

Whether you’re preparing to buy your first home or thinking about your next one, your refund can help you get there. Even a little progress is progress. If you’re not sure where to start, your loan officer can walk you through mortgage program options that fit your situation best.

Note: Should not be construed as financial/legal advice. Consult with a financial advisor.

*In the form of repayable second lien with a 10 year amortization term and a rate at 2% above the first lien rate. Additional restrictions apply.