FAQ – First Time Home Buyer definition

Q: Can I own other properties and still be a First Time Home Buyer?

A: Pay particular attention to the portion of that statement “a first time home buyer is defined as someone who has not owned a primary residence in the three-year period ending on the date of purchasing the home.”  When examined closely we see that in the eyes of the IRS  it only applies to PRIMARY RESIDENCES.

This means that if we are using the definition you may in fact own other properties, i.e.; rental properties, land and commercial property so long as your dont reside there (legally or otherwise) and dont claim a mortgage interest deduction on your IRS Tax returns for the past three tax filings.

This is important to know because most of the States Down Payment Assistance Grants and loans that are made available through the State Housing Agencies rely on this definition for determining compliance eligibility.