Think you can’t qualify as a first-time homebuyer because you’ve owned a home before? You may be surprised. Some programs consider you a first-time buyer if you haven’t owned a principal residence within the past three years, and certain programs have additional exceptions. Depending on your circumstances and where you live, that status could open the door to down payment assistance, closing cost help, low-down-payment financing, or other resources worth exploring.
One commonly used definition of a first-time homebuyer includes someone who has not owned a principal residence during the previous three years. Depending on the particular program, there may also be provisions for certain single parents, displaced homemakers, or people whose previous residence did not meet particular requirements.
The important point is that having owned a home sometime in the past does not necessarily prevent you from qualifying as a first-time homebuyer today. Definitions and eligibility requirements vary by program, so your individual circumstances need to be evaluated against the specific program you’re considering.
- You haven’t owned a principal residence during the previous three years.
- You may qualify under an exception or special provision offered by a particular first-time-homebuyer program.
- Your previous ownership situation may be treated differently under the rules of the program for which you’re applying.
If you qualify under a particular program’s definition, you may have access to benefits such as:
- Low-down-payment options that may reduce the amount of cash needed to purchase a home.
- Down payment assistance through qualifying state, local, nonprofit, or other programs.
- Closing cost assistance that may help with some of the expenses associated with purchasing a home.
- Special conventional financing options for which first-time-homebuyer status may be one of the eligibility requirements.
- Homebuyer education and counseling designed to help buyers understand financing and the purchase process.
- State and local programs that may provide additional assistance to eligible buyers.
It’s also worth knowing that popular mortgage programs such as FHA and USDA loans aren’t reserved exclusively for first-time buyers. Eligibility for those programs is based on their own requirements. That’s another reason it’s helpful to look at the entire range of financing and assistance possibilities rather than assuming there’s one standard “first-time buyer loan.”
Programs, benefits, income limits, property requirements, and availability can vary considerably by location and lender. If it’s been a few years since you’ve owned a home—or you’re simply not sure whether you might qualify—don’t rule yourself out. I can help you explore the possibilities and connect you with knowledgeable mortgage professionals who can determine which financing and assistance programs may be available for your situation.