The housing bust of 2007 has caused one big mess in our country but during this crisis, maybe as a way to help understand or explain it, media outlets and others have created new terms to describe market conditions. Terms like, Zombie foreclosures, Zombie subdivisions, robo-signers, and now the Wall Street Journal has started a new category: Boomerang Buyers.
Boomerang Buyers are former home owners who lost their home during the housing crisis but now are possibly eligible to re-enter the home buying market. Estimates range around 800,000 buyers are now eligible for FHA financing. This number is up from approximately 285,000 in 2011 and is estimated to raise to 1.5 million in 2014.
So exactly what is required of the Boomerang buyer to be eligible for mortgage financing after a foreclosure?
The answer depends on the type of mortgage you’re applying for along with many other important factors(like credit and credit scores to name only two) but one of the 1st requirements are time frames. Conforming loan requirements like FNMA/FreddieMac require a combination of a certain number of years and specific percentage down payment. Government loans vary too, VA minimum requirement is 2 years while FHA is 3 years. But time frames and down payment requirements are only the start. There are many other factors that must be considered and its important to note there are always exceptions to these rules.
Here’s the bottom line, if you were financially effected during the housing crisis, you still may be eligible for home financing. The best way to find out is to contact one of our MIG Loan officers and start the discussion and the qualification process.
Who knows, you may be a potential boomerang buyer and didn’t even know it!