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Bad Credit Waiting Periods


Every week I am asked multiple times about how long a buyer needs to wait after a serious credit issue before they can purchase again.  Fannie Mae, Freddie Mac, FHA, USDA and VA have fairly clear guidelines around these timeframes.  I have  below is a great “go-to” flyer for the typical required waiting periods after a serious derogatory credit event. As always, best is to have them call me so we can determine exactly where they fall in the guidelines and work with them to be ready to purchase in the future. Have a great weekend!!!New Credit Seasoning Time Frames_Come Back Buyer OSI 081814

'Boomerang Buyers' Are Staging a Comeback

Daily Real Estate News | Monday, July 15, 2013

“Boomerang buyers”—former home owners who have gone through a short sale, foreclosure, or bankruptcy in the past few years and are saving up for a down payment to purchase a home again—are coming back. They're expected to flood markets in some of the hardest hit areas for short sales and foreclosures in the coming years. For example, boomerang buyers are predicted to account for nearly one in every five home sales in the metro Phoenix area this year—double the projected U.S. rate. Rising rents and the desire to own again now that the economy is more stable are driving many boomerang buyers to re-enter the market. They also want to jump in before interest rates and home prices climb too much higher. But how soon they can jump back in will depend on the type of loan they had as a previous home owner. For example, boomerang buyers who had FHA loans may need to wait only three years if they can prove that a hardship, such as job loss or death of a wage earner, led to their foreclosure or short sale. Borrowers have typically been required to wait five to seven years to qualify for another loan, but mortgage giants have begun to change their rules to allow home owners who underwent a foreclosure or short sale to qualify sooner. Those who underwent a short sale will likely qualify the soonest. However, not all lenders are participating, …………………………………..

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