What is Considered a First Time Home Buyer for Mortgage Purposes?

Published by julia | Filed under Buyer / Seller Tips, Cool Listings, Market Trends, Pinellas County Homes, Real Estate

You’ve probably heard a lot about special mortgage programs for first time home buyers. These programs provide some really good deals for people who fall into this category, such as lower down payments, looser credit requirements, and lower interest rates in some cases. You can also often qualify for down payment assistance grants if you are a first time home buyer. You may think that just because you have owned a house before that you are out of luck on any of these special programs, but you are wrong. Being a first time home buyer does not necessarily mean you have to have never owned a home before.

Naturally, the basic definition of a first time home buyer is one who has never owned a home before. If you fall into this category, then things are very straight forward for you. You will easily qualify for all kinds of programs to help you get into a house and become a home owner for the very first time. It is a great feeling to own a home, and the government and many private organizations are ready to help you make it happen.

However, there is another, lesser known definition of a first time home buyer, and that is someone who has not owned a home or had an ownership interest in a home for at least three years. Yes, that is right. If you have not owned a home or had your name on a mortgage of a home someone else lived in, then you are once again considered a first time home buyer and are again conferred with all the rights and privileges thereof when it comes to being able to take advantage of all of the special loan programs for this class of people.

If you fall into either of the two categories of first time home ownership, you should jump on board the home buying bandwagon now, while there are still some great deals available. With the economy the way it is, there has never been a better time to buy a home. If you are a first time home buyer, you are in a perfect position to do it.