The Department of Housing Development defines a first-time home buyer as someone who has never owned a home
before, An individual who has not owned a home for at least three years
is also considered a first-time home buyer. As well as, couples if one spouse
is a homeowner but the other spouse has never owned before.
On the other had,
according to the FHA, both spouses are considered first-time home buyers. FHA offers low mortgage rates to entice first-time home buyers too. A first-time home buyer can incorporate closing costs into the mortgage and use gift money for the 3.5-percent down payment.
For a USDA loan a first-time home buyer may qualify for 100% financing. With an USDA-backed loan or a FHA-backed loan, a first-time home buyer can qualify for a mortgage with a credit score of 620, lower than the required credit score for conventional loans.