Any person can qualify for a first time home buyer program if they do not own any property at the time of closing the new loan or have not owned any property within the last three years. This is true of all parties on the new loan.

There are many first time home buyer program loans. Some are local, state, or federal. Sometimes, they have money to lend and sometimes they run out of money in the middle of the transaction. An example – the loan is the “cake” and the first time home buyer is the “frosting” on the cake. Sometimes, it makes sense to use the programs and sometimes, it does not.

There are pros and cons to the program.

Pros:

• Some have lesser down
• Lower interest rate
• Down payment assistance

Cons:

• Giving up one-half the amount of appreciation when one sells or refinances
• Approval needed when one refinances and wants to keep the first time program loan
• More paperwork
• Income limits (not too little or not too much)