Information For First Time Home Buyers

Who Is Considered a First-Time Homebuyer?

According to the U.S. Department of Housing and Urban Development (HUD) a first-time homebuyer meets the following conditions:

An individual who has not owned a principal residence (or primary residence) for three years.

A single parent who has owned a home with a former spouse while married.

An individual who has only owned a principal residence not permanently affixed to a permanent foundation in accordance with applicable regulations. 

 If you are married however it is a bit different if one spouse already owned a home but the other spouse did not, then they could purchase a home together as first-time homebuyers. 

A displaced homemaker who has only owned a home with a spouse.

An individual who has only owned a property that was not in compliance with state, local, or model building codes and cannot be brought into compliance with these building codes for less than the cost of constructing a permanent structure. 

What Are The Key Things That First-Time Homebuyers Should Know:

What should I buy or rent?

For most people buying a home (or not) is the biggest financial decision of our young adult lives. There is no easy answer to the question “is it better to buy or rent?” because it can all depend on various factors like your age, your finances, the neighborhood, your future plans, and the current real estate market. These are just a few things that can come into play when thinking about this question. 

Unless you are confident, you’ll stay in your home for at least four to five years, you should probably just rent. Staying in a home for this short amount of time is not worth all the work of a mortgage and just going through the home buying process. The only time people buy the home if they only want to live there for a couple of years is if they want to rent out the home, making them the landlord, and all while owning another home this could be a good way to earn passive income, but it can be quite difficult to get two mortgages. On the other hand, if you feel like your financially ready and you find the right house you should buy. It’s all about how you feel if you want to be a homeowner and you’re in a good position to make it happen you might as well do it. There are some places where it is more financially savvy to rent rather than buy you can check out where you’re thinking about living and see what might be better for you financially in the link below.