Purchasing a home is always an exciting milestone, whether you’re entering the real estate market for the first time or looking to buy another property. If you’ve previously owned a home, you might be wondering if you can qualify as a first-time homebuyer again. The good news is that in many cases, you can.
In this informative article by Redfin, we’ll delve into the qualifications you need to meet in order to be considered a first-time homebuyer again. Whether you’re searching for a home in vibrant Atlanta, GA, or eyeing a cozy condo in charming Portland, OR, read on to discover if you meet the criteria to be a first-time homebuyer twice.
Key Points to Remember
- Typically, you can be classified as a first-time homebuyer again if you haven’t owned a home for at least 3 years.
- Certain special circumstances may also make you eligible as a first-time buyer.
- Benefits include assistance with down payments, closing costs, and potentially lower interest rates.
Qualifications for Reinstatement as a First-Time Homebuyer
There are various scenarios in which you may qualify as a first-time homebuyer again. Let’s explore some of them:
- If you haven’t owned a primary residence for 3 years: This means that if you previously owned a home, sold it, and rented for 3 years or more, you could be deemed a first-time homebuyer once more. If you’re purchasing with another individual, only one of you needs to meet the requirements to utilize most first-time homebuyer programs.
- If you’re a single parent buying independently: If you’ve never bought a home on your own and are a divorced single parent, you may qualify for first-time homebuyer status again. Even if you previously bought a home with your ex-spouse, you likely still meet the criteria.
- If you’re a displaced homemaker or family caregiver: If you’re a displaced homemaker who did not earn wages from employment and only owned a home with a former spouse, you are likely considered a first-time homebuyer.
- If you previously owned a mobile home: Having owned a mobile home or property not attached to a foundation typically qualifies you.
- If your previous home was non-compliant: If your former home had building code violations or safety issues that were unfixable or too costly to rectify, you are likely eligible.
Advantages of Requalifying as a First-Time Homebuyer
There are several benefits to being classified as a first-time homebuyer once again. Let’s explore some of them:
- Access to first-time homebuyer programs: One of the main perks is being able to utilize first-time homebuyer programs offering assistance with down payments, closing costs, grants, credits, or loans. Each program has its own set of qualifications, so be sure to research each one or consult with your real estate agent and lender for more options.
- Availability of low down payment mortgages: There are multiple loan options tailored for first-time buyers that feature lower down payment requirements. For example, Freddie Mac’s Home Possible and Fannie Mae’s Home Ready offer down payment options as minimal as 3%.
- Potential for reduced mortgage rates: Some lenders may provide slightly lower mortgage rates to first-time borrowers to facilitate their first home purchase.
Frequently Asked Questions about First-Time Homebuyers
Can I regain first-time homebuyer status if I previously owned a home?
Yes, as long as you haven’t possessed a primary residence within the past 3 years or owned a home while previously married.
Do both buyers need to be first-time homebuyers for eligibility?
In most cases, if one buyer meets the criteria, you are considered a first-time homebuyer. However, some programs mandate that both buyers must be first-timers.
Can I qualify for another first-time homebuyer loan?
Yes, generally speaking, if you fulfill the requirements for a “first-time homebuyer,” you can secure another first-time homebuyer loan. Each lender and loan has unique criteria, so ensure you thoroughly review the eligibility guidelines.
Are there income restrictions for these programs?
Yes, many first-time homebuyer programs impose income limits. This means that if your annual income surpasses the specified amount, you may not qualify.