What Does It Mean to Be a First-Time Home Buyer?
A first-time buyer is someone who meets any of the following criteria:
- An individual who has not had ownership of a principal residence for at least 3 years.
- A single parent who has only owned with a former spouse while married.
- An individual who is a displaced homemaker and has only owned with a spouse.
- An individual who has only owned a principal residence not permanently affixed to a permanent foundation in accordance with applicable regulations.
- An individual who has only owned a property that was not in compliance with state, local or model building codes and which cannot be brought into compliance for less than the cost of constructing a permanent structure.
How Do I Know If I'm Ready To Own a Home?
What Type of Loan is Right For Me?
Navigating the range of home loans to find one that best meets your needs can be a difficult process, especially for first-time home buyers. To make things easier, the federal government and the state of Minnesota offer insured home loans tailored to first-time home buyers. These loans offer attractive benefits that can make the home-buying experience less costly and less restrictive. First-time home buyer loans typically offer a lower down payment, reduced interest, limited fees and the possibility of deferring payments. These types of loans are offered at a federal level by the Federal Housing Administration and by most states. The FHA defines a first-time home buyer as a person who has never owned a home or has not owned a home for at least three years. The comparatively lower restrictions on these loans make them ideal for first-time home buyers.
Popular Home Loan Options For First-Time Home Buyers:
You might want to consider these loans if:
- You don’t have enough money saved up for a large down payment.
- You have a limited ability to meet high interest payments and fees.
- Your credit score is not high enough to qualify for other loan types.
Find out what home buyer loan programs are available in your area: