First-Time Homebuyer
The U.S. Department of Housing and Urban Development (HUD) establishes specific criteria to define first-time homebuyers. This classification allows lenders to identify these consumers accurately and helps HUD track the number of first-time buyers annually.
The criteria for classifying first-time homebuyers include:
- No Recent Ownership: Individuals who have not owned a principal residence within the three years leading up to the purchase date. This rule applies to both the individual and their spouse; if either meets this test, they are considered first-time homebuyers.
- Single Parents: Single parents who have only owned property with a former spouse while married qualify as first-time homebuyers.
- Displaced Homemakers: Individuals who are displaced homemakers and have only owned property jointly with a spouse.
- Non-Permanent Residences: Individuals who have owned a principal residence that was not permanently affixed to a permanent foundation according to applicable regulations.
- Non-Compliant Properties: Individuals who have owned property that did not adhere to state, local, or model building codes and could not be brought into compliance for less than the cost of constructing a permanent structure.
If you meet any of the criteria mentioned and are contemplating your first home purchase, there are numerous FHA loans and programs available to assist you in this process. These programs are designed to make homeownership more accessible for first-time buyers.
