97% LTV Loan question

[Brian Prom]

Hey everyone,

I've got a question about Fannie Mae's new 97% LTV loan for first time homebuyers. I currently own a home in which I just refi'd out of a FHA loan to a 15 year conventional. I'm looking to purchase my first rental home, or move to a new Primary and rent out my current home.

Because of the growing prices in my neighborhood, I'm leaning more towards purchasing a new primary, with the growing family and all, I feel it is the best first move, as in the end I will have my first rental home.

I know that to qualify for this loan at least one of the applicants needs to be a first time homebuyer. I purchased my first home before my wife and I got married, and I was the primary buyer. But now that we are married, and I am refinancing, The state of Michigan requires a non-borrowing spouse to sign paperwork and be listed as a co-owner of the home. Does this constitute as her being a homeowner? Or is she still considered a first time homebuyer because she is not a borrower?

I like the idea of only putting 3% down for a new primary, as that will leave me in a better position to purchase another investment property more quickly.

Thanks!