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If the spouse has not owned a home in 5 yrs then they might still qualify for the first time home buyers programs. Just do a search for first time home buyer programs and you will get all the info you need. You could always get an FHA loan.... they have low down payments and the fees are kept down.
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If you have not owned a home within the last 3 years you are considered a first time homebuyer for most programs out there. There are many programs out there and I would not be all that concerned about first time homebuyer programs. Depending on where you live the programs are not that much better then what you can get otherwise.Some lenders like people with clean mortgage history in the past they are a less risky borrower.
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