The share of homes purchased by return buyers or “boomerang buyers", those who formerly were foreclosed on or did a short sale, increased significantly in recent years. NAR Research estimates that 8% or nearly 350,000 home sales were from return buyers in 2014. It’s important to note though, that the majority of these borrowers according to NAR Research were likely of prime quality before entering foreclosure and that they prefer safe, affordable financing for their return purchase.
According to NAR’s 2014 Profile of Home Buyers and Sellers, 41% of return buyers financed their home with FHA backing, while 30% used conventional financing like Fannie Mae or Freddie Mac and another 25% used VA. The VA and FHA allow for shorter time-out periods when a buyer is not eligible for financing and for smaller down payments which likely accounts for their large share of return buyers.
If you are one of these "boomerang buyers" and want to know if you can get into the market again for a new home, please feel free to give me a call. There are many options now available & more are opening up for buyers all the time.
Lenders are finally loosening up