Do You Fit the Description of a First-time Homebuyer in Houston?

Description of a First-time Homebuyer

The U.S. Department of Housing and Urban Development (HUD) describes a first-time homebuyer as:

• someone who has never owned a home.
• someone who has not owned a primary place of residence for at least three years before the purchasing a home.
• someone who currently owns or previously owned a home, but their spouse has not. According to the Federal Housing Authority (FHA), both spouses are considered first-time homebuyers and may purchase a home together as first-time homebuyers.
• someone who has not worked outside the home for a significant number of years and has only ever owned a home with her husband.
• someone who divorces their current spouse or is separated from their spouse in any such way. The only primary place of residence ever owned must be with that ex-spouse, AND they must be a parent.
• someone who is a single parent and has only ever owned a home with a former spouse.
• someone who has been living in a mobile home or RV, a home that was not permanently attached to a foundation, in the last three years.
• someone who has owned only one piece of property which withstood enough damage to make the property non-compliant with local and state building code conditions. The cost to fix the property to bring it back into compliance would cost more than it would cost to build a new property.

If you fit the description of a first-time homebuyer as listed above, you are able to take advantage of first-time homebuyer programs offered by the FHA, a division of HUD.

Benefits for a First-time Homebuyer

The FHA is a governmental regulatory agency for the housing and mortgage industries. Since the Great Depression in the 1930s, the FHA has provided government insurance for home mortgage loans. It encourages first-time homebuyers into home ownership by offering FHA-insured loans to them. Lenders provide favorable terms to first-time homebuyers because of the government backing the FHA offers first-time homebuyers because the government insures the loan if the first-time homebuyer defaults on the loan.

The HUD Urban Policy brief believes that home ownership makes neighborhoods less likely to change fail or decline. It also believes that home ownership is a source of freedom and autonomy for Americans. For these reasons, it promotes and supports financial assistance programs provided by the state and federal government, programs that offer down payment and closing cost credits as financial assistance to first-time homebuyers.

To further promote first-time homebuyers, The FHA also offers low mortgage rates to first-time homebuyers to further promote homeownership. There are different rates for each state, so check with your mortgage lender in Texas for details. First-time homebuyers with a credit score of 620 can qualify for a mortgage with an FHA loan. A credit score of 620 is lower than the required credit score for conventional loans.

If you qualify as a first-time homebuyer with, the FHA will give you special consideration and attractive loan terms. You can get an FHA-insured loan for as little as 3.5 percent down and an interest rate that is lower than a conventional loan. There are great reasons to qualify as a first-time homebuyer.

The Pikoff Team is here to help you through each step of the underwriting process for homeownership in Houston. Buying and selling is what we do best, and we’ve been servicing the Houston area for over 20 years. Contact The Pikoff Team at (281) 670-1910 today. We’ll help you find your first home and answer any questions you might have as a first-time homebuyer.