Not so straight forward
Most easily and simply put, a First-Time Home Buyer is an individual looking to buy their very first primary residence. However, it’s not really as simple as that which is good news for a lot of people.
The Federal Housing Administration (FHA) uses the above definition to define a First-Time Homebuyer.
The Department of Housing and Urban Development (HUD) has stated that home ownership stabilizes neighborhoods, and is a source of freedom and autonomy for Americans. So, while the primary definition of a First-Time Home Buyer is an individual who has never before owned a home, the explanation for HUD and the FHA goes further.
For Different Reasons and Programs
In the case of an IRA Withdraw, you can withdraw up to $10,000.000 from your IRA to purchase a home even if you’re not 59.5 years of age. This purchase does not need to be a traditional home, and you will have to pay income taxes on the withdrawal.
Mortgage programs that offer preferred terms to First-Time Home Buyers are:
- FHA Loans for qualified military personnel, veterans, and spouses
- United States Department of Agriculture (USDA) Home buyers assistance Program for homes in certain rural areas
- Good Neighbor Next Door, originally called the Teacher Next Door Program, was expanded to include Law Enforcement, Firefighters, and Emergency Medical Technicians. This is a HUD sponsored program which allows a 50% discount on the list price of homes located in certain revitalization areas.
- Home Upgrade Programs
- HUD 203(k) loans
- VA Loans
- Dollar Homes
- Fannie Mae and Freddie Mac