Have you have heard the term boomerang buyer before? I bet you haven’t, but you will start to soon. Boomerang buyers are important to our economy and boomerang buyers are one of the reasons why the Albuquerque real estate market is going to be hot this spring.
A boomerang buyer is someone who purchased a home at the top of the market in 2006 or 2007, lost the home to foreclosure or maybe did a short sale, and is now out looking to buy a home.
I’ve been hearing about them in other markets for two years or so, but I haven’t heard much about them here yet. I think the reason why is that our foreclosure process here in New Mexico is a slower legal process, so I’m told, and so just like we lagged behind in foreclosures, we’re lagging behind in boomerangers.
How Long Do I Have to Wait to Buy a House After Foreclosure?
That’s a great question, and to get a great answer you’ll want to consult with a reputable Albuquerque Lender about the specifics of your situation. My understanding is that you can buy in three years using a FHA, VA or USDA loan. You’ll have to wait 7 years using a conventional or a jumbo loan.
Of course, losing a house to foreclosure usually means there is other financial hardship, so if your credit score was damaged severely, you want to get after repairing it or improving it immediately because you’re still going to need to have a decent credit score.
How Long Do I Have to Wait After a Short Sale?
It’s a little easier to buy after a short sale, especially using a conventional loan, maybe as soon as two years. FHA may still require that you wait three years, but under certain circumstances it can happen faster. You may be able to use your VA after two years. USDA will make you wait for three years; jumbo loans will require a 7 year wait.
Boomerang Buyers We Need You!
I hope this helps you see that even if you lost a home to foreclosure or you did a short sale that home ownership is still an option for you. And real estate is still a great way to build wealth. Actually it’s the best one there is.
by Albuquerque Real Estate Agent Rich Cederberg eXp Realty (505) 803-5012.