Boomerang Buyers Arise In Bay Area

Boomerang Buyers Arise In Bay Area

Boomerang Buyers Arise In Bay Area

Foreclosure Victims Now Eligible To Purchase Homes

We’ve seen recent stories about homeowners who had their home foreclosed in 2009 return to buy a home three years later. Yes, many of the people who experienced a foreclosure in 2009 can purchase again with an FHA (Federal Housing Administration backed loan.

In the coming 12 months, about 22,000 Bay Area foreclosures will hit the three-year mark.

Buyers often like FHA loans because they require only a 3.5 percent down payment plus required monthly mortgage insurance and currently a 3.75 percent interest rate on a 30-year loan.

Many people note that the loan guidelines for Fannie Mae and Freddie Mac make people wait seven years after a foreclosure, while the FHA will approve loans “only” three years after a foreclosure, providing the buyer has established good credit and the ability to pay the mortgage.

Boomerang buyers with an FHA loan may have a shot in this hot market in places like Livermore or Vallejo but it will be slim pickings to get an FHA loan offer accepted on a property in San Francisco, the Peninsula or other areas where buyers commonly get rejected with 20% down conventional loan offers.

Boomerang Buyers Can Purchase Again In One Year

For some people, three years remains an eternity. Loans do exist that do not have such stringent waiting periods. Wells Fargo offers an obscure loan with no waiting period after a short sale, and one San Francisco credit union offers a loan one year after a short sale. Each of these loans has particular guidelines but those wishing to take advantage of low rates and prices should not rely on the standard three or seven year in the box loan mentality.

Feel free to contact us for other out of the box boomerang loan options and ideas.

Boomerang Buyers Arise In Bay Area

Boomerang Buyers Arise In Bay Area

Boomerang Buyers Arise In Bay Area

Boomerang Buyers Arise In Bay Area

Boomerang Buyers Arise In Bay Area

Boomerang Buyers Arise In Bay Area

Boomerang Buyers Arise In Bay Area

Boomerang Buyers Arise In Bay Area

Boomerang Buyers Arise In Bay Area

Boomerang Buyers Arise In Bay Area

Boomerang Buyers Arise In Bay Area

Boomerang Buyers Arise In Bay Area

Boomerang Buyers Arise In Bay Area

Boomerang Buyers Arise In Bay Area

Boomerang Buyers Arise In Bay Area

Boomerang Buyers Arise In Bay Area

Boomerang Buyers Arise In Bay Area

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Filed under Banks, California, Foreclosure, Mortgages, San Francisco

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