There is a new phrase being banded around the market called the “Boomerang Buyer’s”. These are buyers who lost their homes to foreclosures or short sales in recent years and are now looking to get back into home ownership.
In order to qualify for a loan with Federal Housing Association, Buyers have to wait 3 years to buy a home after foreclosure of short sale. The World Street Journal reported that 729,000 households that were foreclosed on, are now eligible to purchase a new home.
Any mortgage backed by Fannie Mae or Freddie Mac still have to wait up to 7 years in order to qualify.
So while the news is good for those wanting home ownership again, home Buyers still have to a strong credit score and meet stringent underwriting criteria. If you think you may now qualify, give me a call and we can discuss a strategy for you.