Who would generally be considered ineligible as a first-time homebuyer for most down payment assistance programs?

The designation of being ineligible as a first-time homebuyer for most down payment assistance programs typically hinges on the historical ownership of a home. A client who has lost a home to foreclosure, even if it was two years ago, often still does not qualify as a first-time homebuyer. Many assistance programs specifically define first-time homebuyers as those who have not owned a principal residence in the past three years. Therefore, because the client lost a home to foreclosure, this status can affect their eligibility for down payment assistance despite the time elapsed since the foreclosure.

In contrast, a client currently renting, a recent graduate, or even someone who has owned a home previously but is now a first-time buyer in a broader sense (after a significant period without homeownership) may still qualify for assistance, depending on specific program criteria. In many cases, these individuals do not fall into the restrictive category defined by previous homeownership leading to foreclosures, making them eligible for first-time homebuyer assistance.