Once you joined the ranks of homeowners, are you permanently locked out of all first time buyer benefits? Or is it possible for you to regain access to the benefits of being a home-buying “virgin”? According to HUD it is. Here’s how this agency, which administers FHA loans and whose definition of first-timers is cited in the new housing bill making its way through Congress, defines “first-time” homebuyer.
- Those who have not owned a primary residence during the three year period immediately preceding the close of escrow on the new home. Presumably this doesn’t exclude you if you only owned rental property or other commercial real estate.
- Single parents who owned their homes with their ex-spouse.
- Displaced homemakers who owned their homes with their ex-spouse.
- People who owned homes not considered real property, such as mobile homes not affixed to permanent foundations.
- Property owners whose current residence can’t comply with building codes for less than the cost of rebuilding.
So there are many ways for previous homeowners to recapture their first-timer status and take advantage of whatever special assistance becomes available as a by-product of mortgage reform. Now, what form that bill and potential assistance will take remains to be seen. Stay tuned and have a happy 4th!
(13 votes, average: 4.77 out of 5)
Loading ...
Wow, this is a great explanation of what a first time buyer is. Thanks for clarifying this for me, it’s good to know I would still be considered a first timer since the last home I owned was almost eight years ago.
It’s also good to know that if you get divorced and need a new home, you can qualify as a first time home buyer. Great post!
It’s interesting that you can own rental properties, but as long as you didn’t use any of them as your primary residence, you’re still considered a first-time homebuyer.
Divorced people get to be first-timers if they are single parents or displaced homemakers (spouses who didn’t work outside the home when married). Those who aren’t, but owned a home jointly with an ex within three years don’t get to be first-timers until 3 years have lapsed.