August 13, 2025
Dear Participating Lenders,
There have been inquiries regarding the definition of principal residence under the first-time homebuyer definition.
For purposes of this program, the definition of principal residence means a residence that a person owns and chooses to live in or not.
What does this mean? For Example:
• If, within the three year period, someone owns a residence as an investment or rental property, they are not considered a first-time homebuyer.
• If, within the three year period, someone owns a home and no longer occupies it, they are not considered a first-time homebuyer.
• If someone inherits a residence and owns it within the three year period they are not considered a first-time homebuyer.
The Covenant DPA manual has been updated to include clarification of the definition of principal residence.
If you have questions, please reach out to Corinna Obar at 206-287-4414.