There are new federal housing guidelines to help prior homeowners with a short sale, foreclosure or bankruptcy on their record to re-enter the housing market.
The old guidelines made a new home buyer wait a minimum of three years before buying a new home. Now, with credit problems being the rule rather than the exception, the U.S. Department of Housing and Urban Development (HUD) now allows buyers to qualify in as little as one year after the event.
There are millions to whom this is great news! If these potential buyers have the ability and desire to re-enter the market over the next year, it will have a very positive effect on the long-term health of the housing market going forward.
Some homeowners who lost their homes to foreclosure or took a hit with a short sale or bankruptcy may be reluctant to purchase a new home, even if they have the funds and income to do so. The emotional toll that the loss of a home creates, can take a toll on even the toughest among us. I’ve spoken to many people though, who have come to me for loans and the general consensus seems to be that with dramatically escalating rents and rising interest rates, buying sooner rather than later is a good thing.
Want more information on what you need to do in order to qualify? Give us a call.