With Rocket Mortgages’ RocketONE+ mortgage, you only need to make a down payment of 1%. Claiming $3,379 from the IRS represents a 1% down payment for a property priced at $337,900.
In many regions across the U.S., $338,000 can buy you a substantial home.
Rocket Mortgage
-
Annual Percentage Rate (APR)
Get personalized rates by applying online.
-
Types of loans
Conventional, FHA, VA, jumbo, HomeReady, and Home Possible loans.
-
Terms
Conventional loans with fixed terms of 10, 15, or 30 years, along with 30-year VA and FHA loans, and customizable mortgages with fixed-rate options from 8 to 29 years.
-
Credit required
-
Minimum down payment
0% for VA loans, 1% for RocketONE+, 3% for conventional, 3.5% for FHA, and 10% to 15% for jumbo loans.
-
If you already possess a mortgage through Rocket Mortgage or are planning to initiate one, explore the Rocket Visa Signature Card for potential rewards.
Pros
- One of the largest mortgage lenders in the U.S.
- Offers a mortgage with just 1% down.
- High customer satisfaction ratings from J.D. Power.
- Faster-than-average closing times.
- Potential rebate of up to $10,000 when buying with Rocket Homes.
Cons
- No USDA loans, construction loans, or HELOCs available.
- A hard credit check is necessary for a personalized rate.
- Higher origination fees compared to competitors.
- No physical branch locations.
Another option is to use that refund toward an FHA mortgage. FHA loans, which are insured by the Federal Housing Administration, only require a 3.5% down payment for applicants with a credit score of 580 or higher.
If your tax refund amounts to $3,300, that covers 3.5% on a $94,285 home. While this amount may not be sufficient in many regions, additional state reimbursements or down payment assistance can enhance your purchasing power.
As reported by Redfin, the median home prices in Alabama, Arkansas, Ohio, and Indiana are approximately $250,000.
Prepare for tax season with these options
The offers presented here are from affiliate partners and are selected based on engagement, product relevance, compensation, and consistent availability.
Xpert Assist is offered with any plan at a flat fee.
Guaranteed 100% accuracy and maximum refund.
Chase Bank offers an excellent choice for FHA mortgages, featuring 4,500 branches nationwide and the Chase DreaMaker loan that requires only a 3% down payment. Thus, your $3,300 could fund the purchase of a $110,000 home — or significantly contribute to a $7,500 down payment for a $250,000 property.
Chase Bank
-
Annual Percentage Rate (APR)
Apply online for tailored rates; options available for fixed and adjustable-rate mortgages.
-
Types of loans
Conventional loans, FHA loans, VA loans, jumbo loans, and low-down-payment DreaMaker℠ and Standard Agency mortgages.
-
Terms
-
Credit needed
-
Minimum down payment
3% for DreaMaker℠ or Standard Agency loan.
Pros
- Chase DreaMaker℠ loan requires only 3% down payment.
- Existing customers qualify for rate reductions.
- Above-average customer satisfaction ratings.
- Closing time guarantee.
- Homebuyer grants available up to $7,500.
Cons
- No USDA loans or HELOCs offered.
- No guarantee on refinancing closure dates.
- Chase homebuyer grants limited to specific areas.
While your tax refund may not instantly secure your dream home—given that the median price of a single-family home reached $419,200 in Q4 2024, as per the Federal Reserve Bank of St. Louis—a refund of $3,379 represents just about 0.80% of that amount. Conventional mortgage requirements generally range between 3% to 5% for down payments.
Nonetheless, it’s a solid foundation for your home purchase. Moreover, in many regions, home prices are considerably lower, allowing you to potentially secure a property using just your tax return.
Bear in mind that a down payment is only one aspect of the costs associated with buying a home. You will also need funds for lender fees, closing costs, moving services, mortgage insurance, and beyond.
By implementing effective saving strategies, you can close the gap and turn your homeownership aspirations into a reality.
Mortgage FAQs
How much do you need for a down payment?
Generally, down payments range from 3% to 5% of the home price. USDA and VA loans typically don’t require any down payment, and some lenders may offer mortgages with less than 3% down for qualified borrowers based on income or location.
Can you purchase a home without a down payment?
Yes, VA and USDA loans do not require a down payment. Additionally, some lenders, like Guild, may provide a second mortgage (repayable or forgivable) to cover the down payment, requiring no money upfront.
What is the down payment amount for a $200,000 home?
The required down payment varies based on your finances and lender conditions. However, to put down at least 3% on a $200,000 home, you would need $6,000 in cash.
Subscribe to the CNBC Select Newsletter!
Financial well-being is crucial — maximize your resources. Receive expert advice, strategies, and insights to enhance your financial literacy delivered directly to your inbox. Sign up here.
Why trust CNBC Select?
CNBC Select is dedicated to furnishing our audience with high-quality service journalism and all-encompassing consumer guidance to enable informed financial decisions. Every mortgage-related article is crafted through rigorous research by our expert team of writers and editors with extensive knowledge of mortgage products. While we do earn commissions from affiliate partners for several offers and links, we independently create our content without any external inputs or influence from our commercial team, upholding our journalistic integrity and standards.
Stay updated with CNBC Select’s extensive coverage on credit cards, banking and financial matters, and connect with us on TikTok, Facebook, Instagram and Twitter to remain informed.
Editorial Note: The views, analyses, reviews, or recommendations presented in this article represent the opinions of the Select editorial team and have not been reviewed, approved, or endorsed by any external entity.
