Do I qualify for first time home buyer loan (less than 20% down)?

[Irena M.]

In 2014 my mom helped me purchase a property in Chicago. I wasn't sure if I'd qualify at the time so she took out the mortgage under her name. I then lived in the home and paid the mortgage etc.  A few years later we decided to add my name to the title of that property (but not to the mortgage). For the last 2+ years I have been renting this property while living in another home with my fiance (he owns the home). We're now looking to sell his home and purchase another property together to use as our primary residence.  I know that he won't qualify for a first time home buyer loan as he owns the current property we live in but wondering if I would qualify since I don't have any mortgages on my name? I haven't been able to find any information on people who are on the title but not on the mortgage and if that makes a difference so any insight on this would be greatly appreciated. Thank you!

[Will Fraser]

Hi, welcome the Biggerpockets forums!  I've got good news for you, twice! 

• - People other than first time homebuyers have access to home loans less than 20% down. For example, I bought a home in 2017, which I sold in 2018 to purchase using a FHA 3.5% down loan and I close tomorrow, Lord willing, on a property using a 5% down Conventional loan. These products are not exclusive to First Timers, and it is increasingly rare to see loan products that offer any advantage to a true first time homebuyer.
• - First Time Homebuyer is a misnomer in most loan products.  The fine print on these will usually say something like "hasn't purchased a home in the past X years (which I've seen as low as 3 years!)."  This is a far different thing in actuality than a First Time Homebuyer.  Lenders just can't help themselves . . . . gotta sell!

So, the double good news here is that you should be eligible for a less-than-20%-down loan (assuming you meet all the other loan qualification criteria!