Typical First-Time Home Buyer Requirements

While program requirements may vary from agency, the following are typical requirements:

- The applicant must be a first-time home buyer. A first-time home buyer is most often defined as someone, including his or her spouse, who has not had an ownership interest in a principal residence at any time during the past three years. The term includes displaced homemakers and single parents. This requirement is not necessary if the property is located in a federally designated target area.

- The buyer must meet income requirements:
a) Low Income - 50 to 80 percent of the area median income (AMI).
b) Moderate Income - 80 to 120 percent of the AMI.
The qualifying income includes the total household income: the income of all adults 18 years of age or older who are residing in the property.

- Maximum purchase price may not exceed limits established for the area.

- Applicant may be required to live in the home being purchased for the entire term of the loan, or until the home is sold or refinanced. The program is not eligible for property purchased as an investment or rental.

- If the assistance is a loan, the applicant may be required to provide a down payment.

- Applicant must complete an agency-approved home buyer education training class.

- For local programs, the prospective property must be located within the city limits or unincorporated county areas.

- Applicant must be a citizen of the United States or a qualified alien.