So, you have never owned a home. Are you a first-time homebuyer? YES, or maybe NO. The media is full of promises of low rates and low payments for the first-time buyer – but not everyone who has never owned a home will be eligible for some of the assistance AND some of you who have owned a home before, can use the help. Confusing? You bet! Just make sure you do your homework.

Here are some tips. Or just call Mary or Bob – we specialize in these programs.

1. Your INCOME determines what is available. Government and Quasi-Government assistance in the form of lower than market rates on 1st mortgages, grants or deferred loans are available to families who meet specific income guidelines.
   
   1. Under 80% of median income by family size (see chart below) – you are eligible for the most assistance and the best loans, depending on your credit and income history.
   2. Between 80% and 120% of median income – don’t despair, there are still good loans and some assistance for you.
   3. Over 120% (or 140% for some loan products) of median income, and buying your first home – Congratulations you are considered a buyer and probably do not qualify for the ‘traditional’ programs. But ask questions because some of the ‘first-time’ loan products have pretty generous limits. Beware if someone is trying to ‘sell’ you something that they say is specific to ‘first-time buyers’.
      
   
   For example the 2008 80% Median Income Limits by family size (effective 2/13/2008) for Sacramento County are listed in the table below:
   

2. Previous Homeownership does not determine eligibility. For most programs the definitions of a first time Home Buyer is one of the following:
   1. A borrower(s) who has(have) not owned a home, except a mobile home not affixed to a permanent foundation, during the three years prior to applying for assistance.
   2. A displaced homemaker who, while a homemaker, owned a home with his or her spouse or resided in a home owned by the spouse. A displaced homemaker is an adult who has not, within the preceding 2 years, worked on a full-time basis as a member of the labor force for a consecutive twelve-month period and who has been unemployed or under-employed, experienced difficulty in obtaining or upgrading employment and worked primarily without remuneration to care for his or her home and family.
   3. A single parent who, while married, owned a home with his or her spouse or resided in a home owned by the spouse. A single parent is an individual who is unmarried or legally separated from a spouse and has one or more minor children for whom the individual has custody or joint custody or is pregnant.
   4. And don’t forget if you own a home now but are buying in a Target Area, you still might be eligible for some great assistance.

So really, what’s out there to help the first time buyer?