“First-time homebuyer” is a commonly used term in all areas of real estate. But what exactly is a first-time homebuyer? Here are the specific factors that qualify somebody as a first-time homebuyer and why they are important:
Who Qualifies as a First-Time Homebuyer?
As suggested by the name, a first-time homebuyer is any person who is purchasing their main residence for the first time. First-time homebuyers fit into countless categories and demographics, but they all have the same lack of home purchase history in common. The US Department of Housing and Urban Development (HUD) has specific definitions for first-time homebuyers in a variety of situations, such as single parents who co-owned a home with an ex spouse or a homebuyer who may have owned property in the past but has now owned a residence for three years prior to the new sale.
Special Financial Qualifications
From a selling perspective, the most important thing about first-time homebuyers is that they often have special financial qualifications. First-time homebuyers who fall into the categories defined by the HUD can be eligible for government-sponsored financial assistance programs and special loans.
The Federal Housing Administration (FHA) loans are an example of this special financial assistance. Lenders approved by the FHA can offer first-time homebuyers extremely competitive interest rates and lower down payments compared to traditional loans. The lenders also get an extra layer of security from the FHA to protect them in case the buyer defaults on the loan.
There are many types of special loans and programs first-time homebuyers qualify for. As long as they fit into the right criteria, first-time homebuyers can get approved for loans to assist them in purchasing their first home.
About the Author
Julia Brown and Barry Weiss Weiss
Introducing the partnership of Brown & Weiss. Julia & Barry have a combined 23 years of experience in real estate and over 70 combined years of customer service. They each have lived in the Wilmington area for over 20 years and are very familiar with the local market. Their savvy negotiations and cutting edge marketing join uncompromising integrity as the hallmarks of Julia and Barry’s service. They are well respected in the Wilmington area not only for their professional track record and high ethical standards, but for being hardworking individuals that will do anything in their power to ensure their client’s success. Julia and Barry enjoy working for the number one real estate company in the area- Coldwell Banker Sea Coast Advantage. With the Coldwell Banker brand and their experience behind the sale or purchase or your home, you can’t go wrong. So, put us to work for you today and “Let us light your way home".
