The phrase “first-time homebuyer” might sound straightforward, but in practice, it covers more people than you might think. You don’t necessarily have to be buying your very first home to qualify. In fact, many programs define a first-time buyer as someone who hasn’t owned a home in the past three years. This means if you owned a home in the past but have since sold it and waited at least three years, you may still qualify. Even stay-at-home or single parents who previously co-owned a marital home — but haven’t been listed as the sole owner — could meet the criteria.
There’s also a distinction between a first-time and a first-generation homebuyer. A first-generation buyer is someone whose parents or legal guardians never owned a home during their lifetime. These programs often target low-income households and aim to increase generational wealth through homeownership. While both terms refer to buyers with limited homeownership experience, the support programs and qualifications for each are different, so it’s important to know where you fall.
Beyond the three-year rule, most first-time buyer assistance programs have additional requirements. These may include a minimum credit score (usually between 620 and 680), a debt-to-income ratio below 43 percent, and income limits based on your local area. Some programs also require buyers to contribute a portion of the down payment, complete a homebuyer education course, or purchase a home in a specific city or region. Because the guidelines can vary by state or local agency, it’s helpful to connect with a loan officer or housing counselor who can walk you through the options that match your financial profile.
There are real advantages to qualifying as a first-time buyer. These can include lower interest rates, reduced mortgage insurance costs, and access to down payment or closing cost assistance. In some cases, first-time buyer loans come with more forgiving terms that make monthly payments more manageable. Many communities also offer education programs that teach you the ins and outs of homebuying — and these same programs often serve as the entry point for applying to local grants or low-interest loan options.
If you’re just beginning the homebuying journey, start by evaluating your finances. Review your credit score, debt levels, and savings, and determine how much home you can afford by following the 28/36 rule — where housing costs shouldn’t exceed 28 percent of your income and total debt payments shouldn’t go beyond 36 percent. Next, research local first-time buyer programs and complete any required education courses early. This preparation will put you ahead of the game when it’s time to meet with lenders.
Finally, get preapproved for a mortgage before you start shopping. Knowing how much you can borrow not only narrows your search but also makes your offer more competitive. Compare lenders, read reviews, and ask questions until you find the right fit for your needs. Buying your first home — whether truly the first or simply your first in a while — can be both exciting and overwhelming. But with the right preparation and resources, you’ll be ready to make a smart, confident move.