What is a first time homebuyer?
Fernando Diaz on 12/09/2016
There are many loan programs and grants that cater to first time home buyers. While a person who has never owned a home certainly qualifies as a first time home buyer, those who have owned a home before can also qualify for such programs and grants under certain circumstances. According, to the Federal Housing Authorities (FHA) a person who hasn't owned a home in the past three years may qualify for a first time home buyer loan. The person must have owned and sold their home at least three years prior to qualify for the FHA loan and other federal and local assistant programs.
There are other types of people who are considered first time home buyers. This include single parents who are now divorced from their spouse or those who are displaced homemaker. A displaced homemaker in general is, a man or woman who (1) is unemployed and has not worked as an employee for a substantial number of years, but has worked in his or her home providing unpaid services for family members, (2) has been dependent on the income of another family member but is no longer being supported by that income, (3) has been receiving public welfare assistance for having dependent children, (4) is underemployed and finding it difficult to upgrade employment. (Businessdictionary.com).
Those who have owned a mobile home not permanently attached to a foundation are also considered first time home buyers. If a person does not qualify on their own, but their spouse does, that couple may qualify for first time home buyer loan programs and grants. Also, if one spouse is a home owner and the other spouse has never owned a home, then according, to the FHA, they both are considered first time home buyers. Before you start your journey of home ownership, you should become familiar with all the federal, state, and local assistance programs available. These programs are here to help your journey to homeownership, so talk to a pre-purchase homeownership counselor to find out which assistant program can best serve you.