What Does "First-Time Homebuyer" Mean?

Many types of residence purchases qualify as buying your first home.

There are often special offers from mortgage lenders and the federal government that apply only to first-time homebuyers. Before you take advantage of these offers, however, you need to know if you qualify as a first-time homebuyer.

Definition

A first-time homebuyer is a person who has not owned a principal residence for three years or more before purchasing the home. "Principal residence" does not include vacation or other secondary homes.

Joint Purchases

If you are married, both you and your spouse must fit the definition given above. If you qualify, but your spouse doesn't, then neither of you qualify as first-time homebuyers. However, with other types of joint purchases where the purchasers are not married, both buyers don't necessarily have to qualify as first-time buyers.

Homes

Houses, condominiums and apartments are not the only purchases that first-time home buyer status applies to. Manufactured homes or travel trailers purchased with land also can qualify as buying primary residences.

References

• Internal Revenue Service: First-Time Homebuyer Credit Questions and Answers: Basic Information
• National Association of Home Builders: Frequently Asked Questions About the First-Time Home Buyer Tax Credit