A first-time home buyer is typically defined as someone who has never owned a home before or has not owned a home within the past few years (usually three years or more). First-time home buyers often qualify for special programs and incentives designed to make homeownership more accessible, such as lower down payment requirements, reduced interest rates, or grants. These programs vary by country and region, so it’s a good idea to research what’s available in your area if you’re considering buying your first home.

The benefits of the conventional first time homebuyer programs is they are eligible for a 3% down payment.

You have a few options that you may or may not be aware of.

The first one is the standard. If they have not had any ownership in a “residential” property during the 3 year period preceding the closing date of the new home then they are a first time homebuyer. This means no ownership in any investment property, second home or primary residence.

Above is good although the next one many may not realize they have an option.

If you are a displaced homemaker or a single parent you can be classified as a first time home buyer. This means for example if they got divorced and they were joint owners with their spouse on their marital residence and are now purchasing a new home after no longer being married. Then they can be classified as a first time homebuyer.

If they were married and got divorced or displaced or one spouse passed away and they owned the marital home by themselves and their spouse was not on the previous loan and the other spouse had no ownership then they are not eligible to be classified as a first time homebuyer. This is due to their circumstances have changed although they were able to purchase and own a home on their own credentials.

This also applies if they jointly or solely owned a second home or investment property. This would make them ineligible as a first time homebuyer.

in 99% of scenarios if they cannot have owned a home of any kind in the previous three years or became single parent or divorced or widow and they are departing from a jointly owned residence then they can be a first time home buyer.

Most end up in this situation and are looking for options for low down payment financing.

We have the answers.

Owning your first home can be a significant milestone and a rewarding experience. Here are some key aspects to consider:

1. Financial Preparation: Make sure you’re financially ready to buy a home. This includes having enough savings for a down payment, closing costs, and ongoing expenses like property taxes and maintenance.
2. Mortgage Process: Get pre-approved for a mortgage to understand how much you can afford and to strengthen your offer when you find a home you like.
3. Home Search: Look for homes that fit your budget and preferences. Consider factors like location, size, amenities, and potential for future value appreciation.
4. Negotiation and Purchase: Once you find a home you want, negotiate with the seller on price and terms. Your real estate agent can assist you through this process.
5. Closing: After your offer is accepted, you’ll go through closing, where you’ll sign paperwork, pay closing costs, and finalize the purchase.
6. Homeownership Responsibilities: As a homeowner, you’ll be responsible for maintaining your property, paying property taxes, and possibly homeowners association (HOA) fees.
7. Building Equity: Over time, as you pay down your mortgage and the value of your home appreciates, you’ll build equity, which can be beneficial for future financial goals.
8. Enjoying Your Home: Finally, enjoy the benefits of homeownership, such as personalizing your space, stability, and potential investment returns.

It’s a good idea to work closely with a real estate agent and financial advisor to navigate the process smoothly and ensure you’re making informed decisions.