BOOMERANG BUYERS
20. May, 2014 | |Categories: Ahwatukee, Boomerang Buyers, New construction,
Millions of families lost their home to foreclosure after the housing crash hit. Now, some of those families are back in the housing market. They are known as the “Boomerang Buyers”. 2014 is predicted by housing experts to allow these buyers back into the American Dream sooner than ever imagined.
Generally, buyers must wait at least three years after a foreclosure or short sale to qualify for a government-backed Federal Housing Administration mortgage. It can take seven years to get a conventional loan backed by Fannie Mae or Freddie Mac.
Revisions made over the summer to U.S. Department of Housing and Urban Development (HUD), the guidelines allow these previous homeowners with a black mark on their credit history to qualify for a new mortgage as soon as 12 months after a foreclosure or short sale.
These buyers could still feel some frustration from their credit score and income level which could hold them back from being able to buy again. These qualifications are much tougher now than when many of them originally purchased their previous homes.
Some boomerang buyers heading back to the housing market may find they have to make down payments of at least 20 percent to qualify for a loan, but others are finding opportunities to put down as little as 3.5 percent or 5 percent.
The wait times for qualifying for a loan can vary depending on the former home owners’ circumstances. Typically, the wait times following a short sale or foreclosure are as follows:
· Seven-year wait for home owners with a previous foreclosure before they can qualify for a new mortgage through mortgage giants Fannie Mae and Freddie Mac. If the foreclosure was included in a bankruptcy, the borrower has to wait only four years.
· Two-year wait for home owners who underwent a short sale before they’re eligible for another Freddie Mac and Fannie Mae loan.
· Three-year wait for home owners seeking a Federal Housing Administration loan after a foreclosure or short sale. Some home owners who underwent a foreclosure because of at least a 20 percent cut in their pay may be able to qualify for a new mortgage after just a year through FHA’s Back to Work program.
If you would like more information on your local real estate market, or are first time home buyer I can help you make the best decisions for you and your family. Whether it’s looking to purchase or sell, invest or rent, I’m Debbie Nieman and here to help. As a Phoenix Real Estate Agent for 8 years I can assist you with all your Arizona Real Estate needs.
Debbie Nieman
Keller Williams Sonoran Living
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