Welcome back and thank you for joining us for the finale to our two-part series dedicated to “Boomerang Buyers”. This term refers to former homeowners who have experienced financial difficulties—even bankruptcy—but now they’re bouncing back and once again considering home ownership. This demographic is much more experienced than they were the first time around, and lenders look very highly upon this newfound wisdom. Does this sound like you? If so, guess what…you’re not alone!

In last week’s article “Overcoming Damaged Credit—Own A Home Again: Part One” we discussed and identified the growing market of Boomerang Buyers. This week we’ll explore the subject further, even detailing what the typical waiting period looks like when it comes to purchasing a home after bankruptcy.


Am I Alone As A Boomerang Buyer?

Far from it! According to a recent article in The Wall Street Journal “more than five million American families lost their homes to foreclosure between 2007—the year when the crisis kicked up—through the end of last year.” The article continues by stating “up to 645,600” of these former homeowners, by the end of 2015, will have evidence of this on their credit reports. Industry analysts are viewing this data as an economic game changer.


Even those who experienced black marks on their credit from short sales, bank repossessions and bankruptcy as recently as just a few years ago can now consider the possibility of once again purchasing a new home.

Simply put, you’re far from alone in your classification of being a Boomerang Buyer.


 Do I Have To Wait To Purchase A New A Home?

The truth is, the amount of time you will need to wait relies mainly on you for several reasons. Let’s discuss the various time periods involved, starting with the worst-case scenario first.

  • 7 Years: Freddie Mac and Fannie Mae require quite some time after a foreclosure to once again consider providing a loan as it usually takes this long before said foreclosure no longer appears on a credit report. Does this mean you actually have to wait this long before you can once again become a homeowner? Nope…but we’ll get to that vital information soon enough!
  • 3 Years: In order to qualify for a FHA/HUD mortgage, a three-year wait is very typical, that is if the borrower has reestablished their credit and has proven themselves to be a responsible borrower.
  • 2 Years: If your home was sold via a short sale or deed in lieu of foreclosure, Freddie Mac and Fannie Mae will consider granting a new mortgage to qualified borrowers 24 months after the fact.
  • 1 Year: It’s possible you may qualify for the FHA Back To Work Loan Program if your home went into foreclosure due to at least a 20 percent cut in pay. Certain guidelines and eligibility requirements must be met.

As you can see, the time period can seem like an eternity for buyers. You’ve done everything you could to improve your credit and prove your financial stability but it still seems like the deck is stacked against you. Fortunately, for those looking for a home in Hagerstown, there is good news!


How Do I Once Again Become The Owner Of A New Home?


Coldwell Banker Innovations totally gets it!  We appreciate the hard work you put into rebuilding your financial reputation. Even if you’re not quite where you want to be yet, we will still work with you to help find that dream home you deserve. Contact us at 301.745.1500 and let’s get you back on the road to homeownership! We can’t start the process without you.