In 2007 more than five million home owners lost their houses due to the recession. However, the boom is back and so are the buyers. More than the two million who took a hit during the recession are now qualified to purchase a home. These buyers a now referred to as boomerang buyers. Although, many of the boomerang buyers are cautious, understandably so, of reentering the market now is the time for them to strike.
This year alone, 700,000 buyers are qualified and within the next five years up to 2.2 million will as well. Realtors and lenders should be watching out for these buyers due to their vast knowledge of the market. They’ve owned a home in the past so they’ll already know the ins and outs of purchasing one. Moreover, boomerang buyers will lend a helping hand to the recovering market!
How do you know if these buyers qualify? Well, it’s dependent upon whether they registered a bankruptcy, foreclosure, short sale and what type of loan they are reapplying for. I’ve broken it down in the chart below to make it easier to understand.
After a Chapter 13 Bankruptcy the shortest waiting period is 1 year when using the FHA or VA programs. After a Chapter 7 the minimum wait time is 2 years using the same loans.
If your buyer had a foreclosure the minimum wait time is 2 years when using a VA loan and only 3 years with FHA. This will be great news for many buyers since most thought they would have to wait 7 years to qualify.
While reading this you probably thought of a few friends that might be boomerang buyers. Make sure you share this article and if they need more information have them contact Coastlend Mortgage. 843-388-5763 Eddie@coastlendmortgage.com