Would you be surprised to know that the phrase “first-time home buyer” doesn’t always refer to someone who is purchasing their first piece of property? It’s true. According to HUD’s description, it can also mean the following:
- a homemaker that co-owned a home with their spouse but is no longer receiving any financial support from them
- a single parent that co-owned a home with their spouse before getting divorced
- an individual who has only owned a mobile home (a home not on a foundation)
- an individual who hasn’t owned a home for 3 years or more
This description enables many individuals to take advantage of first-time home buyer mortgage programs when they normally wouldn’t be able to. Furthermore, if your prior home didn’t meet city or state building codes and would cost more to have it brought into compliance than it would to build a new home, you may also qualify as a first-timer. If in doubt, it helps to consult with professionals so that you can make an informed decision.
Advantages of Having First-Time Home Buyer Status
For the individual that qualifies as a first-time home buyer, there are two advantages. First, you’ll be able to qualify for a lower down payment with government-backed home mortgage programs or other individual lender’s offers. Second, you’ll be able to deduct payments that are mortgage-related when filing your taxes. In many cases, the down payment is the biggest obstacle that first-time home buyers face. However, many lenders are offering first-time home loans for as low as 3% down. Additionally, FHA loans will guarantee a 3.5% down payment if you have a credit score of at least 620.
Considerations Before Buying Your First Home
The first thing you need to do before buying your first home is to determine how owning a home fits into your long-term goals. Maybe you’ve decided to turn those wasted landlord or property manager payments into something tangible (i.e., equity). Or maybe the freedom of being your property’s landlord is what appeals to you. In any event, this is a good investment.
When it comes to purchasing your first home, it’s best to find the right real estate agent to help you find the ideal property for you and your family. They can help you find a home that not only meets you and your family’s needs, but one that fits your budget and isn’t too much home for you. To learn more about first-time home loan programs, visit the Florida State Mortgage Group, Inc. website or call us at (954) 359-3000. Our business representatives are available to assist you.