Back into Homeownership - How Long Do You Have to Wait?

Welcome Home!

Over the past decade we saw home purchases rise and fall - and now it seems that we're back on the rise.  Here's why: many people who lost homes in foreclosure or who had to short-sell their home several years ago are now ready to buy again. 

In fact, according to recent surveys, 80% of people who lost their homes during the financial crisis are interested in buying again.   The good news is that a majority are reporting their debt is down and their income is up.

Sounds like the perfect formula for buying a home and getting back on track.

The biggest misconception that I run intois that they can't qualify for a loan.  But with new programs designed to help these "boomerang buyers" return to homeownership, it's definitely worth looking into.

Here's the breakdown from a Realtor.org article on the timelines that a homeowner who went through short sale or foreclosure will have to wait:

• 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.

Timelines change all the time, so contact me if you think you went through a short sale or foreclosure and are now getting ready to get back into a home of your own.  I'm always happy to help!