Are you a first time homebuyer or a returning homebuyer? You might think you know—but you could be mistaken.
At first glance, the answer to the question, “What is a first time homebuyer?” seems like it should be obvious. A first time homebuyer is any borrower who is purchasing their first home ever, right?
Actually, the government has a very different definition. Indeed, we can turn to what the US Department of Housing and Urban Development has to say here in the HUD HOC Reference Guide in the section titled, “First-Time Homebuyers.”
Here are the criteria that HUD lists for what constitutes a “first time homebuyer”:
- An individual who has had no ownership in a principal residence during the 3-year period ending on the date of purchase of the property. This includes a spouse (if either meets the above test, they are considered first-time homebuyers).
- A single parent who has only owned with a former spouse while married.
- An individual who is a displaced homemaker and has only owned with a spouse.
- An individual who has only owned a principal residence not permanently affixed to a permanent foundation in accordance with applicable regulations.
- An individual who has only owned a property that was not in compliance with state, local or model building codes and which cannot be brought into compliance for less than the cost of constructing a permanent structure
So, if you have not owned a home over the past three years, you are technically defined as a first time homebuyer. That means that this classification includes far more homebuyers than it would if it were defined in a more literal way.
As you can see, there are a few other situations where a returning homebuyer might qualify as a “first time homebuyer” as well.
Trying to make sense of these descriptions on your own may be a challenge, and you might not be sure whether they apply to you. But Premier Lending Corp can help explain them to you, and tell you whether or not you fit within the criteria.
Why Does It Matter if You Are a First Time Homebuyer?
You might be wondering why it is important whether or not you qualify as a first time home buyer by the official definition.
The reason is that there are various programs that you may qualify for if you are a first time home buyer which would otherwise be unavailable to you.
A simple example is the HomeOne program from Freddie Mac. This is a program for first time homebuyers to qualify to purchase a home with a down payment of 3%.
If you are classified as a first time homebuyer, we can tell you about programs that might help make homeownership more affordable and accessible to you.
What if you do not fit within the definition? There are still many opportunities for you to potentially buy a home with a low down payment and with affordable rates and terms. We can point you toward lending products that an help.
Find Out If You Are a First Time Homebuyer
If you are ready to get answers to your questions and find out whether you qualify as a first time homebuyer, PLC can bring you the clarity you are looking for.
To get started, please call us today at 954-840-8811 to schedule your consultation. Whether you are buying your first home or not, and regardless of your classification according to HUD rules, we can help you move forward with your home purchase with a competitive mortgage in Florida.