Boomerang Buyers are Coming Back
The boomerang buyers are coming! What is a boomerang buyer? Boomerang buyers are former seller/owners of a home who experienced a short sale, foreclosure or bankruptcy in the last couple of years who has saved up for a down payment on a home purchase and is ready to buy again. Their credit scores are back up to sufficient levels to purchase homes. The boomerangs are expected to be purchasing in the next few years and Naples is a great place for your next real estate investment to be.
After a negative credit event like a short sale, foreclosure, or bankruptcy, there are limits on how quickly one can buy again. For example, if the buyer had a Federal Housing Administration (FHA) loan, they can buy again within 3 years if they show that they had a valid hardship (loss of a job, primary wage earner, health crisis) that caused them to get foreclosed on or apply for a short sale.
In the past, boomerang buyers had to wait 5 to 7 years to qualify for another loan but the rules have changed for those buyers who have foreclosures or short sales in their pasts. Lenders have changed their rules to accommodate these former homeowners and allow them the opportunity to buy again. Those who have short sales qualify more quickly than those who were foreclosed on. Time frames do vary from two to four years after a short sale or up to seven for a foreclosure. The exception for foreclosures is if the buyer can now put down a 20% down payment on their new prospective property. Not all lenders are working with buyers with negative histories so if you are a boomerang buyer who would like to purchase again in Naples, please give us a call so that we can put you in touch with a qualified lender who can assist you with getting prequalified.
