Finance & Money
Why first-time homebuyer rules differ from state to state
Most of the help is state and city money, not federal, and the definition of a first-time buyer is looser than it sounds.
Federal loan programmes set insurance rules and minimum standards; the assistance that gets most people over the line — help with a deposit or closing costs — usually comes from a state housing finance agency or a city programme, each with its own conditions. That is why no single national answer exists.
The definition is worth knowing: most programmes treat somebody who has not owned a principal residence for the past three years as a first-time buyer, so previous ownership does not necessarily rule anyone out.
Assistance usually arrives as a second loan rather than a gift, and the terms vary: some are forgiven after a number of years in the home, some are repayable on sale, some carry interest. Which of those applies changes the real cost substantially and is stated in the programme's own documents.
Nearly all of these programmes require a homebuyer education course from an approved provider. HUD-approved housing counselling agencies provide counselling free or at low cost, and are the right place to ask what is available where you are buying.
What to do next. Contact your state housing finance agency and a HUD-approved housing counselling agency; between them they hold the local programme list.
studentaid.gov outranks this page. Rules, figures and dates change
between academic years. This is written to help you read the official sources, not to
stand in front of them. Start there.
Nothing here is a determination. We cannot tell you what you qualify
for, and no website can. The programme and the office that runs it decide that, after
you apply.
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