Am I Considered a First-Time Home Buyer After Divorce?

Divorce can change almost everything about your life, including your living situation.

If you’re newly single and thinking about buying a home, you may be wondering: Am I considered a first-time home buyer after divorce?

The short answer is yes. You may be considered a first-time home buyer again, depending on how you shared the home with your former spouse, and whether you’ve owned a primary residence in the last three years.

What is a first-time home buyer?

The U.S. Department of Housing and Urban Development (HUD) defines a first-time home buyer as someone who has not owned a principal residence in the past three years.

This definition covers more than most people think. You don’t have to be buying your very first home ever, just your first home in a while.

If three or more years have passed since you owned a home, you may be eligible again. However, eligibility depends on how your name appears on property records.

Understanding the difference between “living in a home” and “owning a home” is key. Simply residing in a property does not count as ownership unless your name is on the deed or mortgage.

How divorce affects your first-time home buyer status

Divorce often involves complex property decisions.

Whether you qualify as a first-time buyer after your divorce depends on how the ownership of the home was handled and your legal ties to the property.

Scenario 1: You moved out and your ex kept the home

If you moved out of the marital home and your ex-spouse stayed, your eligibility will depend on whether your name is still on the mortgage or title.

• If your name was legally removed from both, your three-year clock may have already started.
• If you’re still listed on the mortgage or deed, even if you no longer live there, you’re technically still an owner in the eyes of HUD.

In this case, you may need to wait until three years after your name has been removed before qualifying again as a first-time buyer.

Scenario 2: You sold the marital home as part of the divorce

If the home was sold as part of your divorce settlement and you haven’t purchased or owned another primary residence since, you’re likely on the right path to first-time buyer status.

After three years without owning a principal residence, you’ll be considered a first-time buyer once more. That means access to certain loans, grants, and down payment assistance programs designed to help new buyers afford homeownership.

Scenario 3: You were never on the mortgage or title

This scenario is more common than many people realize, particularly in marriages where one spouse handled the finances or where state laws did not require both names on the mortgage or deed.

If you lived in the marital home but your name was never on the mortgage or title, you may already qualify as a first-time home buyer even if you lived in the property for many years.

In HUD’s eyes, ownership is determined by legal documentation, not by residency alone.

How to determine if you qualify as a first-time home buyer after divorce

Determining your eligibility as a first-time home buyer after divorce may require some paperwork. Still, it’s worth the effort, especially if you’re hoping to access down payment assistance, favorable loan terms, first-time home buyer grants, or other benefits.

Here are the most important steps to take:

Most mortgage professionals can also help pull a copy of your mortgage history and help verify whether you are listed as a borrower or co-borrower.

In some cases, refinancing or legal paperwork from the divorce may have already removed your obligations, allowing your three-year clock to start earlier than you thought.

First-time home buyer perks after divorce

Just because you’ve owned a home in the past doesn’t mean those benefits are gone forever. First-time home buyer loan programs are designed to help people reenter the market, especially after financial or personal transitions like divorce.

Some of the advantages of regaining first-time buyer status include:

1. Access to low-down-payment loan options, such as FHA, VA, and USDA loans, which may require as little as 0%–3.5% down.
2. Ability to use state and local grants or down payment assistance programs. Many of these programs are flexible with credit score requirements, making them more accessible if you’ve had past credit challenges.
3. Lower out-of-pocket costs, which are especially valuable for buyers who may have limited savings, such as after a divorce.

In addition, some programs provide free educational courses or counseling to guide you through the homebuying process with confidence. These benefits can be a valuable lifeline for recently divorced buyers navigating both emotional and financial changes.

The bottom line

Divorce may bring major changes to your financial life, but it doesn’t necessarily prevent you from being considered a first-time home buyer.

If you haven’t legally owned a home in the past three years or were never listed on a mortgage or deed, you may already qualify for programs designed to help new buyers get into a home.

The key is understanding your ownership history. Check your title and mortgage records and review the details of your divorce settlement.

Reach out to a housing counselor or mortgage professional to find out where you stand. With the right guidance, you may be able to buy your next home sooner than you think.