Could You Be Considered a First-Time Homebuyer Again?

One of the most common misunderstandings I encounter is that first-time-homebuyer programs are only for people who have never owned a home.

Florida Housing’s definition is broader than that.

For many of its programs, the important question is whether you have owned and occupied a primary residence during the previous three years. Someone who previously owned a home may therefore be able to meet the first-time-buyer requirement again.

Why the Three-Year Rule Matters

A former homeowner may rent for several years before deciding to buy again.

When that happens, the buyer should not automatically assume that previous ownership eliminates access to first-time-buyer financing or assistance.

The rule focuses on ownership and occupancy of a principal residence during the preceding three-year period. An approved lender must review the ownership history and documentation to determine whether the requirement has been met.

Some veterans and buyers purchasing in qualifying targeted areas may also have exceptions available under certain Florida Housing programs.

What Else Is Required?

Meeting the first-time-homebuyer definition is only one part of qualifying.

Florida Housing currently lists general requirements that include:

• A minimum 640 credit score
• Approved homebuyer education
• Income within the applicable limit
• A purchase price within the program limit
• Financing through an approved participating lender
• Use of the home as a primary residence

The borrower must also qualify for the mortgage under the lender’s normal underwriting standards.

Assistance May Also Be Available

Eligible borrowers may be able to pair a Florida Housing first mortgage with down-payment and closing-cost assistance.

Current options include Florida Assist, the Florida Homeownership Loan Program, and certain forgivable HFA PLUS second mortgages. Each option has different repayment terms and must be evaluated together with the first mortgage.

The largest assistance amount is not automatically the best choice. Buyers should compare:

• Mortgage interest rate
• Monthly payment
• Closing costs
• Mortgage insurance
• Second-mortgage repayment
• Future refinancing plans
• Long-term affordability

Do Not Disqualify Yourself

The practical lesson is simple:

Do not decide that you are ineligible based only on the words first-time homebuyer.

Have a participating lender review your previous ownership, occupancy history, income, credit, and financing goals. You may have more options than you expected.

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Program terms, rates, limits, and eligibility requirements can change. Final mortgage and program eligibility are determined by the lender and program administrator.