If you haven’t owned a primary residence in the last three years, you’re considered a first-time home buyer. This applies to Conventional, USDA, FHA, and VA loans. However, there are nuances! Here’s a breakdown:
- Conventional Loans: As a first-time buyer, you’ll likely need to complete homeowner education certification, though this isn’t always required depending on your loan details (like loan-to-value ratio) or whether you’re applying with someone who has owned property.
- USDA Loans: We’ll verify your ownership history using credit reports for the last two years of residential, information, and a system called MERS. If there’s a mortgage on your credit report but not in county records, we may need to check county records.
- FHA loans: Similar to Conventional, you are considered for the first time if you have had no primary residence ownership in the past three years.
- VA Loans: If it’s your first time using a VA loan and you haven’t owned a home in three years, you qualify as a first-time buyer. However, repeat VA loan users aren’t considered first-time buyers regardless of ownership history.
Important Notes:
- Down Payment Assistance (DPA) or Mortgage Credit Certificates (MCC) may have different first-time buyer requirements set by the offering state/authority.
- Don’t worry about needing a perfect credit score! Programs like FHA and Mortgage Link, as well as wholesale lenders, offer options for lower scores.
Tips for success: Get pre-approved, save for your down payment & closing costs, explore assistance programs, stick to your budget, and always get a home inspection.
To better understand your specific situation, what type of loan are you interested in? This will allow us to provide more tailored guidance regarding homeowner education on requirements and available programs.
