buying

First Time Home Buyer

Generally defined as someone who has not owned a primary residence during the three-year period ending on the date of purchase of the new home. Some programs also include individuals who are single parents, displaced homemakers, or those who have only owned a home with a former spouse.

Example

“As a first time home buyer, Sarah qualified for a special loan program with a lower down payment requirement.”

Memory Tip

Remember "virgin buyer" - someone who has never been married to a mortgage before.

Why It Matters

First-time buyers often qualify for special loan programs, grants, tax credits, and reduced down payment requirements that can make homeownership more accessible and affordable.

Common Misconception

People assume you can never qualify as a first-time buyer again, but the three-year rule means you can regain this status after not owning for three years.

In Practice

A buyer who sold their home four years ago and has been renting since would qualify for first-time buyer programs like FHA loans with 3.5% down payment options.

Etymology

This term emerged in the 1970s when government programs began specifically targeting people buying their inaugural home to stimulate homeownership.

Common Misspellings

first-time homebuyerfirsttime home buyerfirst time homebuyer

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AcceptanceThe agreement by a seller to the terms of a buyer's offer, c…Appraised ValueAppraised value is the dollar amount that a licensed apprais…Backup OfferA secondary purchase offer submitted on a property that alre…Blind OfferA blind offer is a purchase offer made on a property without…BuydownA buydown is a financing arrangement where someone pays addi…Buyer AgentA buyer agent (also called buyer's agent) is a licensed real…

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