@savings4tomorrow wrote:
We are planning on buying ealy next year. We have some savings,but not enough and dont want to have to scrap every penny together for DP/closing clost, etc. We both also have 401k money that we can use if need be, though I prefer not to touch that. It would be nice to use our income tax return as a DP. Is that allowed? Or do I have to let it sit in my account for a couple months. We are most likely going FHA.
Thanks in advance.
You can use your tax refund for your down payment. You just have to show where it came from - papertrail is everything.
Don't cash your check and then deposit the cash into your account - that is where the issues come up. If the refund is electronic or a check then you will have no issues showing the source of the funds.
