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. In the event that there is more than one Mortgagor signing the Mortgage 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. Unless otherwise permitted by FHA, VA or RD as applicable, 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 home purchaser failing to meet the First Time Homebuyer requirements) are the following:

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 signing the Mortgage 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. Unless otherwise permitted by FHA, VA or RD as applicable, cosigners 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 home purchaser failing to meet the First Time Homebuyer requirements) are the following:

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. In the event that there is more than one Mortgagor signing the Mortgage 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 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. Unless otherwise permitted by FHA, VA or RD as applicable, cosigners 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 home purchaser failing to meet the First Time Homebuyer requirements) are the following: