Spring tends to be one of the most popular times for house hunting, and buyers looking for a home in this season can get a nice financial boost as well. Many people will receive a hefty refund once their tax return has been processed.

People use this influx of cash for everything from paying down loans to bulking up a vacation fund. If you're in the market for a new home, a refund can also be especially useful for putting together money for a down payment.

The amount of money you need for a down payment varies depending on what percentage of the purchase price is required. Michele Lerner, writing for the National Association of Realtors, says loans insured by the Federal Housing Administration need only 3.5 percent of the purchase price. Anthony Bird, writing for Riverbank Finance in Grand Rapids, Michigan, says some conventional loans go as low as 5 percent.

If you can put down more at the outset, it will be more helpful in the long run. Higher down payments will result in less interest paid over the life of the loan. You can also avoid private mortgage insurance costs if you are able to put down at least 20 percent of the purchase price.

A tax refund is unlikely to pony up enough for the entire down payment. Lerner says the average federal tax refund for 2013 returns was $3,013. This amount would be enough for an FHA-backed loan on an $86,085 home, but more expensive homes will require a correspondingly higher down payment.

You might also be getting a refund amounting to hundreds of dollars rather than the thousands. Lerner says this is actually better in the long run, since the money you receive as a refund has lost a full year during which it could have yielded dividends in an interest-bearing account. For smaller refunds, however, you might have to put the funds away over a period of a few years to accumulate enough funds for a down payment.

The ability to meet the costs of homeownership is an extremely important consideration when using a tax refund toward a down payment. Polyana da Costa, writing for Bankrate, says you'll want to carefully consider your income. The refund can play a substantial role in your down payment, but it shouldn't be chiefly responsible for your decision to buy a home. If you aren't able to create a reliable rainy day fund for repairs and other unexpected expenses, you might not be able to meet the costs of home ownership.

Lerner recommends having an emergency fund capable of covering at least a few months of living expenses. This fund will come in handy if you lose your job or find yourself facing unexpected bills, such as car repairs.

If you have this account in place, Lerner says the refund can help home buyers in a number of other ways as well. This money can help you cover closing costs, new furniture, and more.

You might also consider putting a refund toward credit card bills or other loan payments. By improving your credit score, you're more likely to be pre-approved for a home loan.