What’s A First Time Homebuyer?


Did you know that most people don’t know what is a First Time Homebuyer? I know it sounds like a ridiculous statement to say. However, people think it refers only to those that have never owned a home before. However, it is a technical term in the mortgage and real estate industry. What it means is, “people that haven’t owned a home in the last three years.” How they arrived at this term – I don’t know.

When looking to qualify for a Down Payment Assistance program, know that ” first-time homebuyer ” does not mean you have never owned a home. It only says that you haven’t owned a home in the last three years.

One of the ways they verify that is to request three years income taxes even though the income qualifications are based on 2 years taxes.

Millions of families lost their homes to short sales and foreclosures during the recession. If three years have passed, you may qualify for an FHA loan and even for a Down Payment Assistance program.

CalHFA is the number one program in California that requires a three-year timeframe. However, it offers money for the down payment and closing costs. What this program does is give you a silent second and a silent third mortgage. That means they are lending not giving you the money. There are no monthly payments on the 2nd and 3rd. You pay them back (one of them is at 0% interest and the other at 2.5% interest) when you sell, refinance or pay off the home in 30 years.

Other first time home buyer programs provide money for a down payment. But not for closing costs. Some of them offer second mortgages with monthly payments, and others provide FREE money by way of a grant.

Call me Chris Trapani, and I’ll evaluate your home buying potential and see which one is best for you. Then I’ll help you Fire Your Landlord!