It appears that you still own the home you bought 5 years ago, is that correct? If that is the case, you actually do not qualify as first time home buyers. According to the IRS website the "rule" is 'Taxpayers who have not OWNED another principal residence at any time during the three years prior to the date of purchase'. I would consult a tax professional.

You shouldn't have any problem with a 15% down payment assuming your credit scores are accurate. However you are no longer considered a "first-time buyer" if you currently own a home. Only if you have sold the home and 3 or more years have elapsed, then you would qualify as a first-time buyer for programs like CHFA or to be eligible for the new $7,500 tax credit.

Mortgage guidelines have changed recently and if you need to show rental income from your current property to qualify for the new purchase, you must not only show a proposed lease (that's all we needed in the past) but you must also show that you have received a security deposit (copy of the check) and evidence that it has been deposited into your bank account. Additionally, that property must have at least 30% equity. If you do not need the rental to qualify, then you don't have to bother with any of that.

I am a Broker in Hamden at Family Choice Mortgage (voted "Best Mortgage Company" by the New Haven Advocate Readers' Poll for the past 5 years). I can be reached at 203-287-2900 ext. 118 or tterzakis@familychoicemortgage.com.

Sincerely,
Terry T. Terzakis
Mortgage Banker

Hello Mrs. T,

As far as qualifying for First Time Buyer status probably not since you currntly own a home. Not to worry since the Connecticut CHFA rate for first time buyers is currently at 6.25%. There are great rates out there right now and I would suggest you call a mortgage broker to discuss your situation and plans with them. If you are not currently working with an agent under a Buyer Broker Contract I would be happy to discuss and recommend a mortgage broker and assist you with your real estate needs. Thanks for your questions and good luck.

Mrs T,

Are you listed with an agent? Are you signed with an agent to look at houses to buy? I have a great mortgage consultant to put you in contact with. Do you mind giving me your information and I will forward it to her?

Cheryl Adamo http://www.ziprealty.com/agent/cadamo