October 18, 2018

Boomerang Buyers Driving a New Housing Boom

121012044850-housing-sold-sign-monsterNearly 5 million Americans were foreclosed on or sold their homes through a short sale  during the Great Recession. It is now anticipated that 70 % of the once foreclosed.

Homeowners are expected to rejoin the housing market within eight years of their foreclosure or short sale.

As the U.S. housing market continues to stabilize, mortgage lenders will begin to consider what criteria makes sense to allow these Boomerang Buyers to once again become homeowners. While the rules will vary from lender to lender, these Boomerang Buyers will find finance options that will get them back on the road to Homeownership.

At this time, FHA requires a Buyer to wait 3 years after foreclosure and they want to see a minimum FICO score of at least 640. Major cities that have been hardest hit by the recession stand to be the big winners as these Buyers are increasing home values with their buying.

So, as the housing market improves there is hope that Americans hit hard by the recession will get a second chance at Homeownership and their little slice of the American Dream.

SOURCE: CBS News

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