agency loan, can you purchase investment home if you are a first time homebuyer

A first-time homebuyer (FTHB) cannot use a standard Fannie Mae or Freddie Mac agency loan to purchase a non-owner occupied investment property. Every agency and agency-eligible program ties FTHB status exclusively to primary residence occupancy. The only available path in the reviewed guidelines is a Non-QM product, subject to specific conditions.

Agency Guideline Requirements (Fannie Mae)

• Fannie Mae's 97% LTV purchase eligibility requires: "Property and Occupancy: One-unit principal residence... At least one borrower must be a first-time homebuyer." Fannie Mae
• FTHB status in DU is a risk mitigant, not an investment pathway: "The presence of a first-time homebuyer on the loan application is considered a mitigating factor in the DU risk assessment." Fannie Mae This context is entirely owner-occupied.
• Investment properties are a fully separate occupancy category: "Fannie Mae purchases or securitizes mortgages secured by properties that are principal residences, second homes, or investment properties." Fannie Mae
• Investment property loans carry LLPAs and require DU underwriting with no FTHB-linked benefit or eligibility pathway. Fannie Mae

Lender Overlays / Matrix — FTHB Programs Confirmed Primary Only

• Fannie Mae HomeReady (New Wave Lending): "Occupancy: Primary Only" Fannie Mae — FTHB homeownership education required when all occupying borrowers are first-time homebuyers.
• Freddie Mac HomeOne (Nations Direct): "At least one borrower must be considered a first-time home buyer" and "Occupancy: Primary Residence only — All borrowers must occupy the mortgaged premises as a primary residence." Nations Direct
• Freddie Mac Home Possible (New Wave Lending): "Occupancy: Primary Only." New Wave Lending
• JMAC Lending Malibu Plus (Jumbo): "A first-time homebuyer is defined as a borrower who has not had ownership interest in a property within the last three (3) years from the application date... Owner-occupied only... Maximum 80% LTV/CLTV." JMAC Lending

Notable Restriction — JMAC Lending Venice DSCR (Non-QM)

Even on Non-QM DSCR investment programs, FTHB eligibility is explicitly blocked: "First Time Home Buyers are not eligible." JMAC Lending

Exception — JMAC Lending Balboa Non-Conforming (Non-QM Only)

One Non-QM product provides a documented exception path for FTHBs on investment transactions: "First Time Home Buyers: Owner occupied or Second Home transactions allowed. Investment transaction is allowed with verified 12-month housing payment history."

• Not an agency loan — this is a Non-QM product only.
• Requires verified 12-month housing payment history as a condition.

Eligibility Summary