If you haven’t owned a home in the past three years, you would be considered a first-time homebuyer, and have a multitude of loan options made available to you – including the FHA 203(k) loan program. While 203(k) loan programs are a great financing option for first-time homebuyers, they are not limited to those who have never owned a home. As long as you live in, or plan on living in, the home in question and meet all other FHA 203(k) requirements, you’re eligible for the 203(k) loan program – regardless of your home owning history.
FHA loans are open to everyone but they’re often considered a first-time homebuyer program for a variety of reasons:
- First-time homebuyers don’t typically have much money for a down payment
- FHA loans only require at least a 3.5% down payment
- Homebuyers with lower credit scores may find themselves eligible for an FHA 203(k) loan
- Gift funds are allowed as a partial or full down payment for an FHA 203(k) loan but documentation is required including a letter that no repayment of the gift funds is expected.