- According to HUD guidelines, a home buyer must meet one of the following requirements to qualify as a first-time home buyer:
The individual has had no ownership in a principal residence for a three-year period ending on the purchase date of the property. This includes a spouse. If either qualifies, they are considered first-time home buyers.
A single parent who has only owned a home with a former spouse while they were married.
A displaced homemaker who has only owned a home with a spouse.
An individual who has only owned a principal residence not permanently affixed to a permanent foundation, according to applicable regulations.
An individual who has only owned a property that was not in compliance with state or local building codes and which cannot be brought into compliance for less than the cost of constructing a permanent structure. - The HUD program was created in 1965 as a direct result of the Department of Housing and Urban Development Act of 1965. In 1966, the department obtained its first secretary, Robert C. Weaver. Once the Civil Rights Act of 1968 was passed, the department earned the right to enforce fair housing to all Americans, regardless of skin color. The Housing Act of 1968 established the Ginnie Mae program to help middle-level income families achieve home ownership status. Since these early times, HUD and FHA have worked to improve upon the nation's homeless rate and to prevent discrimination against low-income families looking to own or rent a home.
- A first-time home buyer is often thought of as someone that has never owned a home. The truth is, a first-time home buyer, under the HUD and FHA guidelines, is someone that may have owned a home, yet the home was either owned with a spouse or unfit for living. If a person becomes divorced and is looking to purchase their first home on their own, they would qualify them as a first-time home buyer. Also, when a person lives in a home that is unfit, including damaged or moldy walls, broken water pipes or no electricity, the person qualify for first-time home buyer assistance if the property would cost more to repair than to build or purchase a new or existing home.
- With the Civil Rights Act of 1968 and the Fair Housing Amendment Act of 1988, equal housing opportunities have led to more than 66 million American home owners as of 1996--the largest number of homeowners in America ever. HUD helped pass many other acts and amendments to help low-income, homeless, single and working parents own a home.
- HUD and FHA also assist veterans and those affected by national disasters purchase homes. It can become difficult to purchase a home after spending years overseas in the armed forces. The FHA assists veterans that have been overseas and not built up credit receive a traditional home loan. Also, when the president declares a disaster, FHA and HUD provide forbearance assistance to prevent the loss of homes.
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