buying

What Is A First Time Homebuyer?

Jon Real Estate Leave a Comment

“There was an interesting comment to my last blog post, one that definitely is worth repeating:

From Doug Bayer, a super lawyer and a super guy:

People should also know the definition of first time homebuyer does not exclude people who have owned before. Individuals who have owned in the past but have not in the past couple of years can also qualify.

It’s an important point, and one that is probably being overlooked by many folks out there who believe that the Federal Housing Tax Credit is only for those who have never owned a home.

So, as the President likes to say, “”Let me be clear””- here’s the definition of a first time homebuyer:

The law defines “”first-time home buyer”” as a buyer who has not owned a principal residence during the three-year period prior to the purchase. For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse.

For example, if you have not owned a home in the past three years but your spouse has owned a principal residence, neither you nor your spouse qualifies for the first-time home buyer tax credit. However, unmarried joint purchasers may allocate the credit amount to any buyer who qualifies as a first-time buyer, such as may occur if a parent jointly purchases a home with a son or daughter. Ownership of a vacation home or rental property not used as a principal residence does not disqualify a buyer as a first-time home buyer.

Still not sure if you’re a first time homebuyer? You are a first time homebuyer and you’re still looking for the perfect Realtor? Wondering what’s going to happen on the final season of Lost? Contact me. We’ll chat.

Source: Everything in bold/italics was lifted directly off of the website of the National Association of Homebuilders.

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