First Time Homebuyer question about qualification

Anonymous · ‎04-14-2016

I was wondering if I would be considered as a first time homebuyer, or not. Here's the situation. In 2011, I entered into a contract for deed with a friend for their house. We didn't take out a mortgage, the contract stated we would pay $xxx each month for 10 years and at the end of the 10 years, they would turn over the title to us. No balloom or lump sum payments or mortgage required from us. About 3 years into the contract (2014), the seller notified us that the mortgage loan that they had taken out on the home would be due in full in a few months and it needed to be paid off. Well, the amount they owed was more than what we owed them and they were at risk of losing the home. The bank must not have known that they had done a contract with us and they closed their loan with full payment due. After a lot of talk with the lawyer, we were able to have a quit claim done on the house, and everything reverted back to the seller, like nothing ever happened and essentially treating our payments as rent payments. I was wondering if us even having the land contract (contract for deed) disqualified us as a first- time homebuyer as we are looking to purchase a home in the near future. We did not claim it on taxes, and though we did pay the property tax, the sellers were listed on there as the owner of the property.

Anonymous · ‎04-14-2016

Are you asking in terms of qualifying for FHA? If so... One of the FHA’s primary criteria is whether or not you’ve owned a home. If you’ve never owned a home, you’re considered a first-time homebuyer. But you are allowed to be a previous homeowner and still qualify as a first-time homebuyer. According to the FHA, you can do so if you have not been an owner in a primary residence for at least three years leading up to your purchase. In this case, you and a spouse are treated separately. If you’ve owned a home but your spouse has not, then you can buy a home together as first-time homebuyers.

Anonymous · ‎04-15-2016

@Anonymous wrote:
Are you asking in terms of qualifying for FHA? If so... One of the FHA’s primary criteria is whether or not you’ve owned a home. If you’ve never owned a home, you’re considered a first-time homebuyer. But you are allowed to be a previous homeowner and still qualify as a first-time homebuyer. According to the FHA, you can do so if you have not been an owner in a primary residence for at least three years leading up to your purchase. In this case, you and a spouse are treated separately. If you’ve owned a home but your spouse has not, then you can buy a home together as first-time homebuyers.

No,not for FHA. We are wondering if we would qualify as a first time homebuyer for the HomeReady Buyer Program, as I am unsure if we are considered a first time homebuyer at all. Would we be considered a homeowner at all based on what I described in our above situation.