Can You Be a First-Time Home Buyer After Divorce?

Divorce can feel like your whole world has flipped upside down. Between the emotional toll and the financial adjustments, thinking about buying a home again might feel overwhelming—or even impossible.

But here’s some good news: you may actually qualify as a first-time home buyer, even if you owned a home with your ex. And with that first-time buyer status, you could unlock special programs and benefits that make buying your next home more affordable and less stressful.

What Exactly is a First-Time Home Buyer?

You might think “first-time home buyer” means you’ve never owned a home—but that’s not always true.

According to guidelines from the U.S. Department of Housing and Urban Development (HUD), you’re considered a first-time home buyer if you haven’t owned a primary residence in the last three years. That means if you sold your shared home, moved out, or haven’t been on a mortgage or title for three years, you could qualify as a first-time buyer again.

You may also qualify if:

• You only owned a home with your ex-spouse

• You were a stay-at-home spouse who didn’t own property independently

• Your previous home was a mobile home not attached to a foundation

• Your old home can’t be brought up to code without rebuilding it completely

Why It Matters: First-Time Buyer Benefits

Qualifying as a first-time buyer isn’t just a label—it can open doors to financial support and easier approval. Here’s how it could help you:

Down Payment Assistance

Many state and local programs offer grants or second mortgages that help cover your down payment, which can be a game changer if divorce impacted your savings.

Lower Interest Rates

Programs like Fannie Mae’s HomeReady or Freddie Mac’s Home Possible often offer discounted rates and flexible requirements for buyers who are rebuilding after big life changes.

Penalty-Free Retirement Withdrawals

First-time buyers can sometimes withdraw up to $10,000 from certain retirement accounts to put toward their home purchase—without paying the usual penalty.

Flexible Loan Programs

First-time status can help you qualify for low down payment loans (sometimes as little as 3% down) with more forgiving credit and income guidelines.

What If You Owned a Home With Your Ex?

One of the most common questions we hear is: “We owned a house together—does that mean I can’t be a first-time buyer?”

Here’s the key: If it’s been more than three years since you had ownership in a primary residence, you can usually qualify as a first-time buyer again. Even if it’s been less than three years, there are some exceptions—like if you were a single parent who only owned with your spouse or if your name wasn’t on the title.

Questions to Ask Yourself Before Buying

Before you start shopping for a new home, take a moment to reflect on these questions:

• Has it been at least three years since I owned a primary residence?

• Was my name on the title or mortgage of our old home?

• Do I meet HUD’s first-time buyer definition?

• Am I eligible for down payment assistance in my state?

• Do I feel ready and financially stable to take on a mortgage?

Thinking through these points now can help you avoid surprises later—and give you peace of mind as you move forward.

Rebuilding Starts Here

Ready to start your new chapter? Here’s what we recommend:

✅ Check your eligibility as a first-time buyer
✅ Connect with a mortgage advisor who understands the complexities of buying after divorce
✅ Explore local programs that can help with down payment or closing costs
✅ Gather key documents, like your divorce decree, income verification, and credit report
✅ Get pre-approved so you know your budget and can make strong offers

We know firsthand that divorce can feel like the end of a chapter—but it can also be the start of a brand new one. Buying your own home is one of the most empowering steps you can take to regain stability and build your future on your own terms.

If you’re wondering whether you qualify as a first-time home buyer after divorce—or just need someone to guide you through the process—we are here to help. Let’s talk about your options, make a plan, and take the next step together.