Discounts for First-time Homebuyers

There are substantial discounts in pricing for first-time homebuyers (FTHB) in the DMV if your income is at or below 120% of the median income, which is $183,480. Being a first-time homebuyer can save you as much as half a percent in the interest rate, depending on factors such as credit score, loan-to-value, and property type.

Most of the time, it is obvious that someone is an FTHB—they have never owned a house. But there are a few situations that might not be as apparent.

How to Qualify as a First-time Buyer

This week, I had a client who was buying a house with a friend for both of them to live in. She already had been a recent homeowner, but this was her friend’s first home purchase. So, they are considered FTHBs as long as one of the borrowers is a FTHB.

Another client had sold his home and rented for the last four years. He was now interested in buying a house, and since he had not owned one in the last three years, he would be considered a FTHB.

Finally, I was talking with a client going through a divorce. Her spouse was keeping the marital home, and she was planning to buy a home. Since she had no ownership interest in a principal residence other than joint ownership interest with a spouse during the preceding three-year period, she would also be considered a first-time homebuyer.

Please contact me if you have any questions.