Under CalHFA's definition, yes, you can still qualify. The program defines a first-time buyer as someone who has not held an ownership interest in a principal residence, and has not lived in a home owned by a spouse, during the past three years. The key words are principal residence. Owning property you do not live in, like an out-of-state rental, does not by itself disqualify you. Verification runs through your tax returns. CalHFA representatives confirmed that in a case like this they would pull three years of returns to check two things: that the out-of-state property was never claimed as your primary residence, and that it shows up as rental income on Schedule E. If both hold, you should be eligible. The practical steps: - Make sure your last three years of returns clearly report the property as a rental on Schedule E. - Confirm you have not claimed it as a personal residence anywhere in that window. - Have your lender verify against the current program rules before you rely on it. Definitions and documentation requirements for this kind of assistance change by cycle. We can review your returns against the current guidelines and confirm you fit before you go under contract.