It’s tax refund season again and one of the questions I often hear this time of year is “Can I use my tax refund as part of my down payment?”
The answer is YES!
Before I get into this though, let’s discuss how much you actually need. If you are buying with USDA or VA Financing, you don’t need any down payment at all!
For Conventional Financing, you need 3% down and for FHA Financing, you typically need 3.5% down. Don’t worry about that yet. When I talk to you about your application, I will let you know which program is best for your situation.
For closing costs, I recommend that you get a seller’s credit written into the contract. With a seller’s credit, you have the seller pay for your closing costs. Usually, you add this amount to your offer so the seller gets the same amount they would have gotten anyway. Your Realtor will help you with this.
Here are some of the acceptable sources for down payment funds:
Things that are not acceptable as a source for down payment funds:
If you are ready to get started please reach out at 937-572-3713.
Debt-to-income first, credit history second, incomplete files third. And the withdrawn applications that denials alone miss. This study was prepared November 1, 2026, from 2025
VA Circular 26-23-19, dated October 2, 2023, explains who is exempt from the VA funding fee, why that status must be confirmed before closing, and how refunds work when a fee was paid in error.
Yes, in many cases you can get a VA loan with a new job, and in many cases you can qualify with a job offer
Take the 30 second mortgage quiz to see if you qualify
