If two people are buying a home together and only one is a first-time home buyer, can they still qualify for first-time home buyer programs?
In most cases, yes—as long as at least one borrower meets the definition of a first-time home buyer, they may qualify for special loan programs, down payment assistance, or tax credits. However, specific program requirements vary by lender and state, so it’s always best to check with a mortgage expert.
For buyers in Texas, including Dallas, Fort Worth, Houston, and Austin, here’s what you need to know.
How Do Lenders Define a First-Time Home Buyer?
In the mortgage industry, you’re considered a first-time home buyer if you have not owned a home in the past three years.
That means:
- If you owned a home before but sold it more than three years ago, you’re considered a first-time buyer again.
- If you’ve been renting for at least three years after selling a home, you may qualify for first-time buyer benefits.
- If you’ve been living in a spouse’s home (but your name is not on the title), you may still count as a first-time buyer.
If at least one person on the mortgage meets this three-year rule, most first-time home buyer programs will allow them to qualify—even if the second borrower has owned a home more recently.
What First-Time Home Buyer Programs Are Available in Texas?
If one borrower qualifies as a first-time buyer, you may be able to take advantage of special programs such as:
1. Down Payment Assistance Programs
- Texas Department of Housing and Community Affairs (TDHCA) My First Texas Home Program
- TSAHC Home Sweet Texas Loan Program
- Local city/county programs in Dallas, Fort Worth, Houston, and Austin
These programs help cover down payments and closing costs, often in the form of grants or low-interest loans.
2. First-Time Home Buyer Loan Options
- FHA Loans – Available to all buyers, but popular for first-timers due to the low 3.5% down payment requirement.
- Freddie Mac Home Possible & Fannie Mae HomeReady – Require as little as 3% down and are designed for lower-income and first-time buyers.
- Conventional 97 Loan – Allows first-time buyers to put only 3% down on a home.
- VA and USDA Loans – While not exclusive to first-time buyers, these programs offer $0 down financing if you qualify.
Many of these loan programs allow only one borrower to be a first-time buyer in order to qualify.
3. First-Time Home Buyer Tax Credits
Texas does not have a state-level first-time buyer tax credit, but you may qualify for the Mortgage Credit Certificate (MCC) program, which reduces your federal tax liability and helps lower homeownership costs.
What If the Other Borrower Has Owned a Home More Recently?
In most cases, as long as one borrower meets the first-time buyer definition, the loan program still applies. However, there are a few things to consider:
- If the non-first-time buyer has significant assets or income, some programs may require a household income limit to qualify.
- If the non-first-time buyer currently owns another home, lenders may require proof that it will be sold or not counted as a primary residence.
- Some down payment assistance programs require both borrowers to be first-time buyers, though this is rare.
It’s important to review the specific requirements of any program you’re considering, as rules vary by lender, city, and loan type.
Final Thoughts: Do You Qualify?
If you’re buying a home in Dallas, Fort Worth, Houston, Austin, or anywhere in Texas, and only one of you is a first-time home buyer, you likely still qualify for most first-time home buyer programs.
The key is to:
- Check if at least one borrower meets the three-year rule.
- Explore loan and down payment assistance options available in Texas.
- Work with a lender who understands these programs and can guide you through eligibility requirements.
If you’re unsure whether you qualify or want to find the best first-time buyer program for your situation, reach out to the Mortgage Mark team. We’ll help you navigate the process and take advantage of any programs available to you.
Have questions? Connect with our amazing Mortgage Mark team today.
Mark Pfeiffer
Regional Sales Manager
Loan Officer, NMLS # 729612
(972) 829-8639
MortgageMark@MortgageMark.com
Mortgage Mark
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