Buying a home is an exciting time, whether it’s your first time buying a home or whether you’re a repeat buyer or not. However, if you previously owned a home, you may wonder if you could become your first home buyer again. In some cases, yes, you can.
This Redfin article examines the qualifications you need to meet and when you can be considered a first-time home buyer again. Buy a home in Atlanta, GA, buy a condo in Portland, or see if you qualify as your first home buyer.
Key takeout
Usually, if you haven’t owned a home in three years, you’re once again your first home buyer. Some special circumstances may qualify you as a first-time buyer. Benefits include help with down payments and closing costs, as well as lower interest rates.
When will you be considered your first home buyer again?
Usually, if you have not owned a major residence for at least three years, you are once again considered your first home buyer. To illustrate below, there are several additional reasons why you can qualify again as a first-time home buyer. Some first-time HomeBuyer programs have different definitions of “first-time HomeBuyer”, so check with a specific program before proceeding.
Qualifications to be considered a first-time home buyer
There are other reasons why you can qualify twice as a first-time home buyer. Let’s take a look at them:
You have not owned a major residence for three years. This means that if you owned a home, you sold it and rented it for three years. You can be considered a first-time home buyer. If you are buying with others, only one person must meet the criteria for using most first-time home buying programs. You are your own parent purchase. If you have never bought your own house and are divorced single parents, you can qualify again. Even if you bought a house with your previous spouse, you may still meet the criteria. You are a displaced person/family caregiver: If you are a displaced person who has not earned wages from employment or does not own a home with your ex-spouse, you are probably considered your first home buyer. I previously owned a mobile home. If you owned a mobile home or property that is not attached to your foundation, you are probably entitled to it. Your previous home was not out of compliance. If your home has a building code violation or safety issue that could not be brought to repair or compliance because it is less than the value of the home, you are probably entitled to.
Benefits of becoming a first-time home buyer again
Being a first-time home buyer has two benefits. Let’s take a look at them:
Access to your first-time home buyer program: One of the biggest benefits is the availability of first-time home buyer programs such as down payments, closure costs assistance, grants, credits and loans. All programs have different qualifications, so talk to your agent and lender to explore each program or explore options. Low Down Payment Mortgage Options: First-time buyers have several loans that offer low down payments. For example, Freddie Mac’s Home Possibility and Fannie Mae’s Home Lady offer a down payment of as low as 3%. Potentially Low Mortgage Fees: Lenders may slightly lower mortgage rates to first-time borrowers to help them buy their first home.
First-time home buyer FAQ
If I had previously owned a home, could I be my first home buyer again?
Yes, as long as you have not owned a major residence in the last three years or have owned a home while you were married previously.
Do both home buyers need to be first-time home buyers to qualify?
No, in most cases, you will be considered your first home buyer, as long as one home buyer meets the qualifying criteria. However, some programs require both home buyers to become first-timers.
Can I requalify for my first homebuyer loan?
Yes, in most cases, if you qualify as a “first-time home buyer” you can get your first home buyer loan. All lenders and loans are different, so please read the eligibility criteria thoroughly.
Is there an income limit for the program?
Yes, many first-time home buyer programs have income limits. This means that you are not eligible for more than the specified annual amount.
