Who qualifies as a first-time home buyer may surprise you! It’s possible that you might think you don’t qualify, but the truth is that there are plenty of options out there for you to make homeownership your reality. If you’re ready to take the plunge and start your search, here are some things to keep in mind when figuring out who qualifies as a first-time home buyer!
The general requirements
The best first-time home buyer programs are those that have a low down payment, require no mortgage insurance and offer the opportunity to use gift funds for the down payment. To qualify for these programs, you typically need to be a U.S. citizen or permanent resident who has been living in the U.S. for at least six months and have a good credit score. The best first-time homebuyer benefits come from programs that waive appraisal fees, provide an extra month of mortgage interest tax deduction, allow unmarried people without kids to buy a house together with one income proving $40,000 per year (and two individuals with joint incomes totalling $77,400), provide access to loan options with lower rates and more favourable terms than FHA loans.
First-time buyers might also find it easy to qualify if they’re buying on their own (no co-purchasers). Some mortgages require that each borrower make at least 10% of the purchase price as a down payment (or $50k) - this can make it difficult for many first-time buyers.
The exceptions to the rule
There are exceptions to the rule. Generally speaking, you don’t qualify as a first-time home buyer if you purchased a home in the last three years. However, there are some exceptions:
You can still be considered a first-time homebuyer if you’ve never owned any property before It’s possible to buy two homes in one year and still be classified as a first-time buyer You can also qualify as a first-time buyer even if you have ownership interest of up to 10% in your current residence (i.e., co-owner). Check with your mortgage lender or real estate professional to find out how much equity is needed in order to qualify for a new mortgage on your first home.
The benefits of being a first-time home buyer
One of the benefits of being a first-time home buyer is that you can take advantage of government programs like the best first-time buyer programs. There are plenty of resources online to help you determine if you qualify as a first-time buyer, and what programs are available to help with your down payment. For example, if you have been looking for a mortgage lender, they may have some experience helping qualified applicants who are also first-time buyers. If you're considering applying for a mortgage or refinancing an existing loan, it's important to understand your situation and qualifications ahead of time. The process may be long and tedious but it's worth it in the end when you finally get that house all for yourself!
How to get started
It can be hard to know where to start when you're looking for a mortgage, but if you're a first-time home buyer, it's even more difficult. If you're wondering who qualifies as a first-time home buyer and whether or not it's easy to qualify, then check out our FAQ post to see what the best first-time buyer programs are in your area. And don't forget to read up on the mortgage requirements before applying for a loan, because some may say that you have to have at least a 20% down payment before they'll give you any help at all! That doesn't sound so bad, right? Read up on how to get started by checking with your lender of choice and seeing which first-time buyers benefits they offer.