First-Time Buyer
First-Time Buyer Protocol: Ownership Strategy vs. Down-Payment Myths
1. The 3-Year Reset Rule
- The Loophole: The definition of a "First-Time Home Buyer" is simply someone who has not owned a principal residence in the last 3 years.
- Qualification: Even if you owned a home 4 years ago, you now qualify again for first-time buyer grants, down payment assistance, and favorable tax credits.
2. The Down Payment Math
- FHA Loans: Require only 3.5% down. This is the classic entry point for buyers with credit scores starting at 580.
- Conventional 97: A 3% down option for buyers with higher credit (620+). You don't need $80k to buy a $400k home; you need $12k.
- Grant Programs: Nevada offers "Home is Possible" grants that can cover up to 5% of your down payment.
3. House Hacking
- Offset the Mortgage: Don't just buy a home; buy a roommate layout. Renting out a secondary bedroom can cover 40-50% of your mortgage payment.
- Appreciation: You stop paying your landlord's mortgage and start paying your own. Every payment builds equity that you can borrow against later tax-free.
