First-Time Homebuyer Credit: What Does It Mean?

A first-time homebuyer credit is a tax benefit or financial assistance program designed to make homeownership more accessible to individuals purchasing a property for the first time. At the federal level, a significant first-time homebuyer tax credit was introduced between 2008 and 2010 to stimulate the housing market, but it has since expired. However, many state and local governments continue to offer their own programs, which can include local tax credits, down payment assistance, or reduced-rate loans. Because the official definition of a "first-time homebuyer" often includes anyone who hasn't owned a primary residence in the past three years, more buyers may qualify than realize it. Checking with your state’s housing finance agency is the best way to find current programs available in your area.