First-time homebuyer
Someone buying their first home. Many programs define it as anyone who has not owned a home in the past three years, which can open access to special loans and assistance.
Also called: first time buyer, FTHB, first-time buyer
Related terms
Programs, often run by state or local housing agencies, that help buyers cover the down payment or closing costs through grants or low-cost or forgivable second loans. Most have income, price or first-time buyer rules.
A mortgage insured by the Federal Housing Administration, allowing low down payments and more flexible credit standards. Borrowers pay an upfront and annual mortgage insurance premium, and loan amounts are capped by county.
A lender's written statement that you qualify for a loan up to a certain amount after reviewing your credit, income and assets. Sellers usually expect one with an offer. Final approval still depends on the property and underwriting.
The part of the purchase price you pay in cash rather than borrow. A larger down payment lowers the loan amount and can remove the need for mortgage insurance on a conventional loan.
Fees and charges paid at closing on top of the price, such as lender fees, title insurance, recording fees, taxes and prepaid items. Buyers often pay around 2% to 5% of the price; sellers pay their own set of costs.