If You Are Divorced, Can You Be Considered a First-Time Home Buyer?

If You Are Divorced, Can You Be Considered a First-Time Home Buyer?

Today I’m discussing a question I get asked a lot: If you’re divorced, can you still be considered a first-time home buyer? The short answer is yes, but it really depends on your unique situation. As someone who’s been through life’s ups and downs myself, I know how overwhelming it can feel to navigate homeownership after a divorce. So, let’s break it down together—because I want to help you figure out if you qualify as a first-time home buyer and how to make the most of it.

Picture this: you’re newly divorced, and the house you once shared with your spouse now belongs to them. If your name is off the mortgage and the title, many lenders will look at you as a first-time home buyer again. That’s huge! It opens doors to special loan programs, better interest rates, and even neighborhood-specific assistance that could put cash back in your pocket. I’ve seen this happen for clients time and time again—folks who thought homeownership was out of reach post-divorce suddenly realizing they’ve got options.

But here’s the catch: you’ve got to make sure everything from your divorce is squared away. When I was helping a client last year, we hit a snag because their name was still on the old mortgage, even though the divorce decree said otherwise. It delayed their new home purchase by months! So, take it from me—work with your attorney to ensure your name is removed from both the mortgage and the title of your former home. If that final filing doesn’t happen, it can haunt you when you’re ready to buy again.

Now, let’s talk about what “first-time home buyer” really means. It’s not about your age or whether you’ve ever owned a home before—it’s about your current situation. To get the full scoop, sit down with a loan officer who knows their stuff. I can’t tell you how many times I’ve seen people light up when they discover they qualify for lower down payments or grants they didn’t even know existed. Some programs are tied to specific areas, so if you’re eyeing a certain neighborhood, there might be extra help waiting for you.

The key? Work with someone who gets it—a loan officer who can dig into first-time home buyer programs and match them to your needs. I’ve been in real estate long enough to know that’s the difference between just buying a house and buying the right house with the best deal. Divorce can feel like a reset button, and this is your chance to start fresh with a home that’s all yours.

One thing I can’t stress enough: make sure your divorce is 100% finalized. I’ve met too many people who signed the papers, walked away, and assumed it was done—only to find out the county still had loose ends. Double-check that all documents are filed properly. Trust me, it’s a headache you don’t want when you’re trying to close on your dream home. In Minnesota, here’s a little nugget to remember: it’s “one to buy, two to sell.” That means you can buy a home solo while married, but selling it requires your spouse’s sign-off unless the divorce is complete. If you’re mid-divorce and buying, get it in writing in the decree to avoid surprises later.

So, if you’re divorced and dreaming of homeownership, you might just be a first-time home buyer in the eyes of lenders. It’s a chance to reclaim your space and build something new. Ready to explore your options? Reach out to me at Tom Sommers Coldwell Banker—I’d love to help you get started on this exciting journey!

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