Home Buyers who had a short sale or foreclosure are making a comeback

A “boomerang buyer” is the nick-name given to people who lost their home due to foreclosure or a short-sale during the Great Recession, who are “back” buying a home again. Realtytrac reports:

In 2015, the first wave of 7.3 million homeowners who lost their home to foreclosure or short sale during the foreclosure crisis are now past the seven-year window they conservatively need to repair their credit and qualify to buy a home. More waves of these potential boomerang buyers will be moving past that seven-year window over the next eight years corresponding to the eight years of above historically normal foreclosure activity from 2007 to 2014.

What many boomerang buyers may not realize is that you don’t have to wait seven years to buy again. The seven year weight period applies to people who had a foreclosure and want to buy again using a conventional mortgage for financing. Someone who had a short sale or foreclosure can buy again after a 3 year wait period using an FHA mortgage.  After seven years, following the distressed sale, the home owner may be able to refinance out of their FHA mortgage and into a conventional loan assuming they qualify.

FHA mortgages are a great stepping stone for boomerang buyers who are re-entering the housing market. In addition, HUD has recently reduced the annual FHA mortgage insurance (paid monthly), making FHA a more competitive mortgage. FHA mortgages offer reduced down payment requirements with loan limits up to $517,500 for 2015 in King, Snohomish and Pierce Counties.

If you have had a foreclosure or short sale, I’m happy to help you to get ready to buy your next home. Click here if I can provide you with a mortgage rate quote.

What May Impact Mortgage Rates this Week: January 26, 2015

mmsc 12th manMortgage rates continue to be bouncing at very low levels while the markets continue to be very volatile. Here are some of the economic indicators scheduled to be released this week that may impact the direction of mortgage interest rates:

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Freddie Mac reports mortgage rates continue to slowly drift lower

Freddie Mac’s weekly rate report revealed that mortgage rates continued to trend lower last week.

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What May Impact Rates this Week: January 19, 2015 [Mortgage Rate Post: Rates trending lower]

10527303_10152476072701046_2911459444863856330_nHoly Catfish – the Seahawks are going to the Superbowl! Okay, now I can return to writing this week’s mortgage rate update.

This is a short week with yesterday’s holiday honoring Martin Luther King. There are not a lot of U.S. economic indicators scheduled to be released this week. Elsewhere in the world, China has some interesting developments taking place in their markets yesterday and the ECB’s monetary policy decision will be released on Thursday, which may impact our markets.

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Freddie Mac Reports Lowest Mortgage Rates since May 2013

2015-01-15_0807_Fredie_Mac_RatesThis morning, Freddie Mac released their weekly mortgage rate report confirming that the 30 year fixed conforming rate is back to record lows from 19 months ago:
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What May Impact Mortgage Rates this week: January 12, 2015 [RATES TREND LOWER]

mortgageporter-economyMortgage rates continue to bounce along very low levels. Last Friday’s Jobs Report was a bit of a mixed bag with then number of employed increasing and hourly wages slightly lower. We don’t have any economic indicators scheduled to be released today. Watch mortgage rates take their cue from the stock market and world events.

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It’s Official: FHA Mortgage Insurance to be reduced

Today HUD issued Mortgagee Letter 2015-01 officially reducing FHA mortgage insurance effective on case numbers issued on or after January 26, 2015. HUD is also allowing existing case numbers (with the current higher mortgage insurance) to be cancelled as long as they were ordered within 30 days from today.

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President Obama to announce drop in FHA Mortgage Insurance Premiums

2013-08-06_0653Tomorrow President Obama is expected to announce a reduction in the mortgage insurance premiums for new FHA mortgage loans.

From Bloomberg News:

As part of an effort to expand homeownership among entry-level buyers, President Barack Obama will announce a cut in Federal Housing Administration mortgage-insurance premiums during a speech in Phoenix tomorrow, according to three people with direct knowledge of his plans.

The annual fees the agency charges to guarantee mortgages will be cut by 0.5 percentage points, said two of the people, who asked not to be identified because the White House hasn’t yet made the announcement.

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