Common use of First-time homebuyer Clause in Contracts

First-time homebuyer. Except with respect to Single Family Residences located in a Targeted Area and Disaster Area or as otherwise provided in the related Invitation and in the applicable Administrator’s Guidelines, each Mortgagor must be a First Time Homebuyer. Each such person must not have had a present ownership interest in a principal residence at any time during the three-year period prior to the date on which the Mortgage is executed. For the purposes of the preceding sentence, the Mortgagor’s interest in the residence with respect to which the financing is being provided is not taken into account. (a) A fee simple interest; (b) A joint tenancy, a tenancy in common, or tenancy by the entirety; (c) The interest of a tenant-shareholder in a cooperative; (d) A life estate; (e) A land contract or contract for deed (i.e., a contract pursuant to which possession and the benefits and burdens of ownership are transferred although legal title is not transferred until some later time); (f) An interest held in trust for the Mortgagor (whether or not created by the Mortgagor) that would constitute a present ownership interest if held directly by the Mortgagor; and (g) An interest in a mobile home or factory-made housing that is required to be taxed as real property under State law, is permanently affixed to realty and with respect to which the Mortgagor owns the realty on which it is affixed. Examples of interests which do not constitute present ownership interests (and thus would not result in a potential home purchaser failing to meet the First Time Homebuyer requirements) are the following: (a) A remainder interest; (b) A lease with or without an option to purchase; (c) A mere expectancy to inherit an interest in a principal residence; (d) The interest that a purchaser of a residence acquires on the execution of a purchase contract; (e) An interest in other than a principal residence during the previous three years; and (f) An interest in a mobile home or factory-made housing that is not required to be taxed as real property under State law, is not permanently affixed to realty or with respect to which the Mortgagor does not own the realty on which it is affixed.

First-time homebuyer. Except with respect to Single Family Residences located in a Targeted Area and Disaster Area and certain exceptions that apply to Veterans, or as otherwise provided in the related a specific Program Invitation and in the or applicable Administrator’s Guidelines, each Mortgagor must be a First Time Homebuyer. Each such person must not have had a present ownership interest in a principal residence at any time during the three-year period prior to the date on which the Mortgage is executedClosing. For the purposes of the preceding sentence, the Mortgagor’s 's interest in the residence with respect to which the financing is being provided is not taken into account.. In the event that there is more than one Mortgagor with respect to a particular residence, each of such Mortgagors must meet the three-year requirement. A person who is liable under the Mortgage Note (i.e., a cosigner) secured by the Mortgage but who does not have a present ownership interest in the residence subject to the Mortgage need not meet the three-year requirement. For example, where a parent of a home purchaser cosigns the Mortgage Note for a child but the parent takes no interest in the residence, it is not necessary that the parent meet the three-year requirement since the parent is not a Mortgagor of the residence. Cosigners may only provide additional security and may not be utilized to qualify a Mortgagor for a Mortgage Loan. Examples of interests which constitute present ownership interests (and thus would result in a potential purchaser failing to meet the First Time Homebuyer requirements) are the following: (a) A fee simple interest; (b) A joint tenancy, a tenancy in common, or tenancy by the entirety; (c) The interest of a tenant-shareholder in a cooperative; (d) A life estate; (e) A land contract or contract for deed (i.e., a contract pursuant to which possession and the benefits and burdens of ownership are transferred although legal title is not transferred until some later time); (f) An interest held in trust for the Mortgagor (whether or not created by the Mortgagor) that would constitute a present ownership interest if held directly by the Mortgagor; and (g) An interest in a mobile home or factory-made housing that is required to be taxed as real property under State law, is permanently affixed to realty and with respect to which the Mortgagor owns the realty on which it is affixed. Examples of interests interest which do not constitute present ownership interests (and thus would not result in a potential home purchaser purchasers failing to meet the First Time Homebuyer requirements) are the following: (a) A remainder interest; (b) A lease with or without an option to purchase; (c) A mere expectancy to inherit an interest in a principal residence; (d) The interest that a purchaser of a residence acquires on the execution of a purchase contract; (e) An interest in other than a principal residence during the previous three years; and (f) An interest in a mobile home or factory-made housing that is not required to be taxed as real property under State law, is not permanently affixed to realty or with respect to which the Mortgagor does not own the realty on which it is affixed.

First-time homebuyer. Except with respect to Single Family Residences located in a Targeted Area and Disaster Area and certain exceptions that apply to Veterans, or as otherwise provided in the related a specific Program Invitation and in the or applicable Administrator’s Guidelines, each Mortgagor must be a First Time Homebuyer. Each such person must not have had a present ownership interest in a principal residence at any time during the three-year period prior to the date on which the Mortgage is executedClosing. For the purposes of the preceding sentence, the Mortgagor’s interest in the residence with respect to which the financing is being provided is not taken into account. (a) A fee simple interest; (b) A joint tenancy, a tenancy in common, or tenancy by the entirety; (c) The interest of a tenant-shareholder in a cooperative; (d) A life estate; (e) A land contract or contract for deed (i.e., a contract pursuant to which possession and the benefits and burdens of ownership are transferred although legal title is not transferred until some later time); (f) An interest held in trust for the Mortgagor (whether or not created by the Mortgagor) that would constitute a present ownership interest if held directly by the Mortgagor; and (g) An interest in a mobile home or factory-made housing that is required to be taxed as real property under State law, is permanently affixed to realty and with respect to which the Mortgagor owns the realty on which it is affixed. Examples of interests interest which do not constitute present ownership interests (and thus would not result in a potential home purchaser purchasers failing to meet the First Time Homebuyer requirements) are the following: (a) A remainder interest; (b) A lease with or without an option to purchase; (c) A mere expectancy to inherit an interest in a principal residence; (d) The interest that a purchaser of a residence acquires on the execution of a purchase contract; (e) An interest in other than a principal residence during the previous three years; and (f) An interest in a mobile home or factory-made housing that is not required to be taxed as real property under State law, is not permanently affixed to realty or with respect to which the Mortgagor does not own the realty on which it is affixed.