In 2015, the first wave of 7.3 million homeowners who lost their home to foreclosure or short sale during the foreclosure crisis are now past the seven-year window they conservatively need to repair their credit and qualify to buy a home.
As of August 2014, new changes were made to themortgagewaiting period forforeclosuresandshort salesfor specific situations.
Foreclosures: 7 years from the foreclosure completion date (some applicants may qualify for a conventional loan only 3 years after with extenuating conditions including wage earner death, illness or job loss)
Short Sale/Deed in Lieu-Short Sale:
7 year with less than 10% down of primary residence
4 years with 10% down on the purchase of a primary residence
4 years with 20% down on the purchase of a primary, secondary orinvestment propertypurchase
2 years with extenuating circumstances, only with 20% down
Foreclosures: 3 years from the foreclosure completion date and transferred back to the lender to the credit report date
Short Sale: 3 years from the title transfer date
Department of Veterans Affairs Loans
Foreclosure: 2 years from foreclosure completion date and date transferred back to the lender
Short Sale: 2 years from previous sale closed date and new owner transfer date
This is great news for thehousing marketandreal estate investors. Morehomebuyersshould be ready topurchase over the next 8 years as they slowly come out of the foreclosure or short term window. These “boomerang” homebuyers are characterized as being Generation X (35-44 year olds) and Baby Boomers. As investors, it is important to keep the home buying audience in mind to make the propertyrehabdecisions.
Are you one of these “boomerang”homebuyers?
Author:Kate Fadden Phone: 360-483-6483 Dated: July 8th 2015 Views: 457 About Kate: ...
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