When Are You Considered a First-Time Homebuyer Again?

Buying a home is an exciting time, whether this is your first time purchasing a house or you’re a repeat buyer. But if you’ve owned a home before, you may be wondering if you can be a first-time home buyer again. In some cases, yes, you can. 

In this Redfin article, we’ll go over what qualifications you need to meet and when you can be considered a first-time homebuyer again. Whether you’re buying a home in Atlanta, GA, or a condo in Portland, OR, read on to find out if you’re eligible to be a first-time homebuyer twice.

Key takeaways

• Usually, you’re a first-time homebuyer again if you haven’t owned a home in 3 years. 
• Some special situations may also qualify you as a first-time buyer.
• Benefits include down payment and closing cost assistance and lower interest rates.

When are you considered a first-time homebuyer again?

Typically, you’re considered a first-time homebuyer again if you have not owned a primary residence for at least three years. There are several additional reasons you may qualify as a first-time homebuyer again, which we’ll explore below. Some first-time homebuyer programs have different definitions of “first-time homebuyer,” so check with the specific program before proceeding. 

Qualifications to be considered a first-time homebuyer

There are other reasons you may qualify as a first-time homebuyer twice. Let’s take a look at them:

• You haven’t owned a primary residence for 3 years: This means if you owned a home, but sold it and rented for 3 (or more) years, you can be considered a first-time home buyer again. If you’re buying with another person, only one of you needs to meet the criteria to use most first-time home buyer programs.
• You’re a single-parent buying on your own: If you’ve never purchased a home by yourself and are a divorced single-parent, you may qualify again. Even if you purchased a home with your former spouse, you likely still meet the criteria.
• You’re a displaced homemaker/family caregiver: If you are a displaced homemaker who doesn’t or didn’t earn wages from employment and has only owned a home with a former spouse, you’re likely considered a first-time homebuyer.  
• You previously owned a mobile home: If you owned a mobile home or property not affixed to a foundation, then you likely qualify.
• Your previous home was out of compliance: If your home had building code violations or safety issues that could not be repaired or brought into compliance for less than the home’s value, you’re likely eligible. 

Benefits of being a first-time homebuyer again

There are benefits to being a first-time homebuyer twice. Let’s take a look at them:

• Access to first-time homebuyer programs: One of the biggest benefits is the ability to use first-time homebuyer programs such as down payment and closing cost assistance, grants, credits, or loans. Every program has different qualifications, so make sure to research each program or speak with your agent and lender to explore options.
• Options for low down payment mortgages: There are several loans available for first-time buyers that offer lower down payment amounts. For example, Freddie Mac’s Home Possible and Fannie Mae’s Home Ready offer down payment amounts as low as 3%. 
• Potentially lower mortgage rates: Sometimes, lenders will offer slightly lower mortgage rates to first-time borrowers to help them buy their first home. 

>>Read: 11 First-Time Homebuyer Myths Debunked

FAQs about first-time homebuyers

Can I be a first-time homebuyer again if I previously owned a home?

Yes, as long as you haven’t owned a primary residence in the last 3 years, or you owned a home while previously married. 

Do both homebuyers need to be first-time homebuyers to qualify?

No, in most cases, as long as one homebuyer meets the qualifying criteria, then you’re considered a first-time homebuyer. However, some programs require both homebuyers to be first-timers. 

Can I qualify for a first-time homebuyer loan again? 

Yes, for the most part, if you qualify as a “first-time homebuyer,” you can get another first-time homebuyer loan. Every lender and loan is different, so be sure to read the eligibility criteria thoroughly. 

Are there income limits for programs?

Yes, many first-time homebuyer programs have income limits. This means you won’t qualify if you make more than the specified annual amount.