What Is First-Time Homebuyer?
First-Time Homebuyer: For most mortgage programs, someone who hasn't owned a home in the past three years.
For mortgage purposes, a first-time homebuyer usually means someone who hasn't owned a principal residence in the past three years. You can have owned a home before and still qualify.
Benefits
- 3% down conventional loans for first-time buyers, including Fannie Mae's HomeReady and Freddie Mac's Home Possible (which also have income limits)
- Down payment assistance programs, many limited to first-time buyers
- State mortgage credit certificates in some areas, which provide a federal tax credit on part of your mortgage interest
- Reduced transfer taxes in some states
Homebuyer education
Some programs require a homebuyer education course, often online, when all borrowers are first-time buyers.
Good to know
FHA, VA and USDA loans don't require you to be a first-time buyer.