Key Takeaways
- You don’t have to be a “true” first-timer; not owning a primary home in the past three years often qualifies you.
- Many qualify without realizing it, including former homeowners, veterans, teachers, nurses, and first responders.
- First-time home buyer programs can make homeownership much more affordable.
Buying your first home isn’t always about buying for the very first time. Many programs count you as a first-time buyer if you haven’t owned a home in the past three years, opening the door to special benefits and assistance.
In this article (Skip to...)
- What is a first-time home buyer?
- First-time home buyer qualifications
- First-time home buyer requirements
- FAQ
- Resources
What is a first-time home buyer?
Understanding who qualifies as a first-time home buyer is the first step toward finding the right program. Most lenders consider you a first-time buyer if you meet any of these conditions:
- You have never owned a home before OR
- You have not owned a home in the last 3 years
- The home you’re buying will be your primary residence, not an investment property
If you check one of the first two options and the third, you should move onto the next step: qualifying for a first-time homebuyer program.
Average Age of First-Time Homebuyers
The median age of first-time homebuyers in the US has reached a record high of 38 years old. This is a significant increase from previous years, with the typical first-time home buyer in the 1980s being around 29 years old.
Who qualifies as a first-time home buyer?
To qualify as a first-time home buyer, you must not have owned a primary residence in the past three years, whether you’ve been renting, living with family, or in another non-ownership situation.
Verify your first-time home buyer eligibility. Start hereHowever, the rules around who qualifies as a first-time home buyer can be surprisingly flexible due to the number of specialty home loan programs designed to help people purchase their dream homes.
Understanding the qualifications for first-time home buyers is the first step toward homeownership. Here, we’ll break down the various scenarios under which different individuals qualify, making it easier for you to see where you might fit in.
1. Renters looking to own a home
Ideal Candidate
- Has been renting and hasn’t owned a home in the past 3 years
- Wants to transition from renting to owning
- May be interested in a rent-to-own option with current rental
If you’ve been renting and haven’t owned a home in the past three years, you may qualify for special first-time home buyer programs that offer down payment and/or closing cost assistance.
2. Single parents and caregivers
Ideal Candidate
- Has been renting and hasn’t owned a home in the past 3 years
- Recently divorced or separated and starting fresh
- Looking to provide stable housing for children or family
Life changes don’t disqualify you. Even after divorce or time spent caregiving, you may still qualify as a first-time buyer, and there are programs ready to help.
3. Educators, firefighters, EMTs, and law enforcement
Ideal Candidate
- Has been renting and hasn’t owned a home in the past 3 years
- Works as a teacher, firefighter, EMT, police officer, or in another public service role
- May not have significant savings for a large down payment
Before you buy, check out homebuyer programs tailored to your profession. Teachers, EMTs, and law enforcement may unlock major savings.
4. Veterans and service members
Ideal Candidate
- Has been renting and hasn’t owned a home in the past 3 years
- Currently serving or honorably discharged from military service
- Interested in using VA loan benefits for a first home purchase
Served in the military? You may qualify for a VA loan with no down payment, no mortgage insurance, and flexible credit requirements.
5. Mobile home owners
Ideal Candidate
- Owns or previously owned a mobile/manufactured home
- Has not owned a home built on a permanent foundation
- Interested in transitioning to a traditional, site-built home
Thinking about making the move from mobile to permanent housing? You may qualify for low down payments, special financing, and first-time homebuyer assistance.
6. Investment property owners
Ideal Candidate
- Has rented their personal residence for 3+ years
- Has not owned or lived in a primary residence during that time
- Wants to transition from renting to owning a home to live in
Owning real estate doesn’t automatically exclude you from first-time buyer programs. If you’ve been renting your own home and haven’t lived in a primary residence for the past three years, you may still qualify.
First-time home buyer qualifications by state
Many states and regional governments offer programs to make homeownership more affordable to first-time home buyers. Click on your state below to see options that may be available to you.
First-time home buyer requirements
Having explored the types of buyers who qualify as first-time home buyers, it’s time to dig into the next layer: the standard requirements you’ll typically need to meet to qualify for a loan or assistance program.
These criteria help lenders assess your readiness for homeownership and determine which programs you may be eligible for. Here’s a quick breakdown of what to expect.
Verify your first-time home buyer eligibility. Start hereRequirements for First-Time Home Buyer
- Down Payment: As low as 0–3% for many programs; VA and USDA loans may require no down payment.
- Debt-to-Income Ratio: Ideally 43% or lower, though some programs may allow higher
- Credit Score: Typically 620+ for conventional loans; FHA loans may allow scores starting at 580
- Credit History: No late payments, low credit card balances, no accounts in collections
- Employment History: Two years of steady employment is preferred to verify income stability
- Income Limits: Some programs cap income based on your area’s median to ensure accessibility
Wondering how close you are to qualifying for a mortgage? Grab your free scorecard to quickly assess your readiness and see where you stand.
FAQ: First-time home buyer requirements
Time to make a move? Let us find the right mortgage for youYou may be. But not if you currently own your own home. Many lenders and assistance programs apply a three-year rule. You count as a first-time buyer if you haven’t owned a home or had your name on a mortgage agreement within the previous three years.
You may still count as a first-time buyer. Most lenders and DPA programs follow the policy of the U.S. Department of Housing and Urban Development. HUD says a first-time buyer is an individual who has had no ownership in a principal residence during the 3-year period ending on the date of purchase of the property. This includes a spouse (if either meets the above test, they are considered first-time homebuyers). So you should be fine.
There’s no minimum income required to buy a house. But lenders will closely examine your personal finances to ensure you can manage the mortgage payments along with your other financial obligations. How much you have to earn will depend on your existing debts, your down payment, and the home price you hope to afford.
It’s rare, but not impossible. You’d probably need help from a down payment assistance program or your family to cover everything you need. Remember, you have to pay closing costs as well as the down payment. So even borrowers with zero-down-payment mortgages often need some help—or savings.
Technically, it’s 500. But that’s an FHA loan with a down payment of 10% or higher. With a 3.5% down payment, you’d need a score of at least 580. Other types of mortgages typically require higher minimum scores, around 620 or 640. And some individual lenders may want higher FICO scores than those minimums.
Minimum down payments are typically 3–5% of the home purchase price. But you need to budget another 2-5% of the purchase price for other home-buying expenses. Those include upfront fees, closing costs, earnest money, prepaid property taxes, and homeowners insurance. Don’t forget: Some down payment assistance programs can help with these other costs. So search out the best one in the area where you’re buying.
It depends on what you mean by hard. Most lenders love first-time buyers and will do all they can to help. Plus, down payment and closing cost assistance can lower your out-of-pocket costs. The hard part is often finding the right home for your price point and doing all the administrative work required. However, millions have successfully bought their own homes in the past, so don’t lose heart; the process might be tough, but it’s certainly not impossible!
Additional resources
How to Qualify for a Home Loan as a First-Time Home Buyer
Can I Be a First-Time Home Buyer in a Different State?
When Are You Considered a First-Time Home Buyer Again?
Am I Considered a First-Time Home Buyer After Divorce?
Do Couples Lose First-Time Home Buyer Status If One Partner Bought a Home Before?