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What is a first time home buyer?

A first-time homebuyer is someone who is seeking a mortgage for the first time. These consumers are typically young adults who are more flexible because they are not trying to sell an existing home.

First-Time Homebuyer Profile

According to the National Association of Realtors, the median age for a first-time homebuyer in 2008 was 30. Those buyers also earned a median income of $60,600 and planned to stay in their first homes for a decade.

Considerations

First-time homebuyers are confronted with a barrage of considerations, including finding a home they can afford, signing a loan and understanding their rights as homeowners.

First-Time Homebuyer Financing

These buyers often gravitate toward Federal Housing Administration loans because they require a smaller down payment and are easier to qualify for.

$8,000 Tax Credit

In 2009, Congress passed an $8,000 tax credit for first-time home buyers in an effort to boost the nation’s sluggish real estate market.

Tax Credit Extension

Government officials extended the tax credit for first-time homeowners who purchased their homes by April 30, 2010 and closed on those homes by June 30 of that year. According to a 2010 Reuters article, first-time homebuyers made up nearly 50 percent of all U.S. home sales in March of that year.

Source:

Realtor.org: NAR Home Buyer and Seller Survey Shows Rise In First-Time Buyers, Long-Term Plans

IRS.gov: First-Time Homebuyer Credit

Reuters: 1st time US homebuyer share jumped in March-Survey

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