NEW YORK – If you are a first-time homebuyer, you likely have several questions regarding the home-buying process. Let’s start by defining what qualifies as a first-time homebuyer. Generally, this term refers to an individual purchasing their first principal residence. The U.S.
Department of Housing and Urban Development (HUD) provides a broader definition, including the following:
- Someone who hasn’t owned a principal residence in the three-year period before purchasing a new home.
- An individual who has never owned a principal residence, even if their spouse was a homeowner.
- Single parents who previously owned a home with their ex-spouse.
- Displaced homemakers who only owned property with their spouse.
First-time homebuyers often have access to special benefits, such as lower down payments, grants, and assistance with closing costs, sponsored by state and federal governments. Some lenders also offer incentives and special loan products for first-time homebuyers. Those with low-to-moderate incomes may qualify for grants or loans that do not require repayment if they stay in the home for a specific period. Additionally, certain individuals may be eligible for closing cost assistance based on their circumstances.
