A house buyer is considered to be a first-time buyer if they haven’t owned the home they’ve been living in for the previous three years before making their purchase.
43% of the market for newly constructed homes is first-time purchasers. First-time home purchasers are eligible for special tax credits and financial incentives offered by the government that are not available to buyers of subsequent homes.
When purchasing a home for the first time, purchasers may take advantage of special financing programs that are not accessible to repeat buyers. Whether you’re purchasing a house with Smartfi Loans for the first time or buying a home after an absence of more than three years, it’s a good idea to know your alternatives and how to optimize the amount of home you can afford.
Who exactly qualifies as a “First-Time Home Buyer” according to government guidelines?
Any individual who has not owned the principal dwelling in which they now live during the last three years is considered by the government to be a first-time home buyer. The three-year timeframe that is used to determine eligibility for first-time home buyers is backward-looking and is based on the date that the transaction will be finalized. The date on which the mortgage application is submitted has no bearing on eligibility.
Tenants, young purchasers, single parents, uprooted housewives, and persons who have never paid rent are all eligible to purchase a property for the first time.
- My husband and I have decided to purchase a new house. My husband is not a person who has never owned a house before.
Both you and your spouse qualify as first-time buyers if none of you has purchased a main residence in the past three years and if neither of you has owned a property in the prior six years.
- I am a parent raising a child or children alone after a divorce. During the time that my ex-spouse and I were married, I co-owned a house with him. It’s the only house I’ve ever owned in my whole life.
Since you are a single parent and have never bought a house on your own before, you qualify as a first-time buyer for this transaction.
- During the time that my ex-spouse and I were married, I co-owned a house with him. It’s the only house I’ve ever owned in my whole life. I’m getting ready to rejoin the working world.
Because you no longer have a place to call “home,” according to the government’s definition, you are considered to be a “first-time house buyer” for the purposes of this acquisition.
- In the past, I had a house that I owned and in which I had resided for more than three years. At this point, I want to use it as an investment property (https://financial-dictionary.thefreedictionary.com/invetionary.com)). Since I moved out of my last apartment more than three years ago, I’ve been renting somewhere.
In this situation, the sort of mortgage you have will determine whether or not you are considered a first-time home buyer.
For the purposes of an FHA loan, “first-time home buyer” means that you have not owned a main property during the preceding 36 months.
- Earlier in my life, I lived in a mobile house.
Inasmuch as your previous mobile home wasn’t firmly set on a foundation, you qualify as a first-time buyer.
Get pre-approved for a mortgage loan right away if you are a first-time home buyer.
What Does It Mean to Be the First Generation in Your Family to Purchase a Home?
A first-time homebuyer is considered to be of the “first generation” if their parents did not previously own a property and do not now own one. The LIFT Act provides lower mortgage rates for qualified home purchasers, but only those who are first-time buyers.
First-generation homebuyers included:
- Buyers entering the housing market for the first time who has ever been in foster care
- First-time purchasers whose parents were forced to sell their house due to a foreclosure or short sale
- Purchasers entering the housing market for the first time whose parents previously owned a property but do not do so now
- All members of the first generation to purchase a house did so for the first time. First-time purchasers are not always members of the first generation of their families to purchase a property.
Get your application for a mortgage designed for first-time home buyers pre-approved.
Communities and individual households both benefit financially from homeownership. The government provides assistance to tenants who are interested in purchasing a home.
Scholarships in the form of money and mortgage relief programs
Homebuyers entering the market for the first time have the option of requesting a forgiving mortgage from their local government in lieu of a down payment or applying for cash incentives from local governments. Grants in the form of cash may go up to $25,000. There is a cap of five percent on the amount of the mortgage that may be forgiven.
