Using Tax Return as Down Payment?

[anca21bi]

Is it bad to use my tax return as down payment for a home even if I didn't actually "save" in my bank account? I have no savings else where except in my 403B TSA.

[WannaHouse]

Well, technically you saved it, it's just that the government got the interest holding onto it for ya!

I don't see anything bad about it. You are not taking out a secret loan (lying) and it is YOUR money. Go for it!

[fused]

---

anca21bi wrote:
Is it bad to use my tax return as down payment for a home even if I didn't actually "save" in my bank account? I have no savings else where except in my 403B TSA.

---

I'll wait for others (the experts) to chime in, but I wouldn't buy house without some reserves on hand, that is money that isn't tied up.

[WannaHouse]

---

@fused wrote:

---

@anca21bi wrote:
Is it bad to use my tax return as down payment for a home even if I didn't actually "save" in my bank account? I have no savings else where except in my 403B TSA.

---

I'll wait for others (the experts) to chime in, but I wouldn't buy house without some reserves on hand, that is money that isn't tied up.

---

I should have thought before I posted. It would be alot better to have a nice chunk saved before you buy. 

[ShanetheMortgageMan]

Is it bad as in, it won't qualify?  No, your tax refund is fine to use as a down payment, or as qualifying reserves, etc.

Is it bad as in, is it a bad choice to use all cash on hand as the down payment so the only thing you have left is a 403b TSA and a few bucks in checking?  Well, how would that make you feel?  Would you feel comfortable, uncomfortable?  I'd put my money on uncomfortable, or at least that is how I would feel, so if I was you, I would not.  My personal recommendation is have at least 4-6 months of emergency funds in case something unexpected happens.  That's not 4-6 times the new housing payment, that is 4-6 times whatever the minimum expenses you will need to pay in order to keep surviving (food, utilities, debt, etc.).