What Does "First-Time Homebuyer" Really Mean?

Thinking about buying your first home in Houston? Programs like FHA loans and Texas first-time buyer assistance can make it easier — but many people are surprised to learn what actually counts as being a “first-time homebuyer.”The Definition Might Surprise You.

You’re considered a first-time homebuyer if:

• You haven’t owned a home in the past three years (even if you owned one before, you get a fresh start).
• You only owned a mobile home that wasn’t on a permanent foundation.
• You owned a property that didn’t meet building codes and couldn’t be fixed.
• The bottom line is YES, you could have owned before and still qualify and reap the benefits of a first-time buyer

FHA loans are one of the most popular options for new buyers. With good reason, they offer a low down payment, just 3.5% if you have a credit score of 580 or higher. It's an easier approval process than getting a conventional loan. FHA loans also offer more flexible credit and income guidelines than conventional loans do. 

In addition, FHA loans can provide a path to homeownership for buyers who assume owning a home is just out of reach for them, even if they don’t have perfect credit.

On top of FHA loans, Texas offers great assistance programs like state-sponsored grants and down payment help. Affordable, fixed-rate loans plus closing cost assistance are also available for many buyers.

Assistance is also available at the city level in many areas. Here in Houston, depending on your income and desired neighborhood, you may qualify for additional savings.

The bottom line is, if you’ve been dreaming of buying a home in Houston, don’t count yourself out. Even if you’ve owned a home before, you may still qualify as a “first-time buyer” and take advantage of programs designed to make your path to homeownership more affordable.

Ready to find out more? Feel free to contact me anytime, and I’ll walk you through the process!

Scottie