We all have heard the term First Time Home Buyer but do we really understand it? Most people including Realtors and Lenders alike wrongly assume that you could only ever once be a First Time Home Buyer however there are many different interpretations of this term and the purpose of this post is to help clarify what exactly a First Time Home Buyer is and how we as lenders will determine your eligibility.
Q: What is the legal definition of a First Time Home Buyer
A: No one knows for sure but according to IRS.gov individuals who are qualified first time home buyers of a principal residence in the United States., “a first-time home buyer is defined as someone who has not owned a primary residence in the three-year period ending on the date of purchasing the home. Married couples are considered first-time buyers if neither spouse has owned a residence in the previous three years.”