Short answer
For most mortgage programs, you're a first-time homebuyer if you haven't owned a home in the past three years, so many people who owned before still qualify. HUD and Fannie Mae both use a three-year look-back, and HUD adds exceptions, for example for a single parent or displaced homemaker who only owned with a former spouse.
What is the three-year rule?
HUD defines a first-time homebuyer as someone who hasn't owned a principal residence during the three years before the purchase. If one spouse meets the test, both are treated as first-time buyers.
Fannie Mae's definition is similar: you're buying the home to live in, and you haven't had an ownership interest in a residential property in the three years before the purchase.
Are there exceptions?
HUD also counts as first-time buyers:
- A single parent who only owned with a former spouse while married
- A displaced homemaker who only owned with a spouse
- Someone whose only home wasn't permanently attached to a foundation
- Someone whose only home didn't meet building codes and couldn't be brought up to code for less than the cost of a new permanent structure
Why does it matter?
Some programs and down payment assistance are open only to first-time buyers, and some education requirements apply to them. Each program uses its own definition, so check the one you're applying for. In New Hampshire, see NH Housing programs and the first-time buyer guide.
Sources
- HUD, Homeownership Centers reference guide: first-time homebuyer definition
- Fannie Mae Selling Guide E-3-06, Glossary: first-time homebuyer
Checked October 28, 2026. Rules and dates change, so confirm current details before you rely on them.
General information only, not tax or legal advice. Program availability, eligibility and terms vary by lender and are subject to change and to underwriting approval. Not a commitment to lend.