The real estate market decline that started in 2006 and hit its low point in 2012 is on the mend. Unfortunately, many good Americans lost their home over these 6 years. With interest rates still amazingly low it creates a very attractive market for those individuals ready to be homeowners again.
This pool of buyers, referred to as “Boomerang buyers” do have options to get into a home of their own. Among these options are Rent to Own, or a lease purchase, Owner Finance, short term private investor purchase, family members, or conventional mortgage depending on credit score and length of time that has lapsed since their short sale or foreclosure. The idea of a lease purchase probably seems the most logically to many “boomerang buyers” given that they are most likely renting right now. The buyer would find a property willing to agree to a lease purchase. A price would be …show more content…
Private investors may be found through local banks and real estate agents. The investor would purchase the sought after property for an agreed price and interest rate for a short term only. A private investor is just looking to tie up his/her money for 6-12 months while earning a higher rate of interest than he/she could at a bank. Therefore, the “boomerang buyer” must be confident that at the end of the contract term another source of financing can be obtained. Many “boomerang buyers” may not realize that the qualifications for a conditional mortgage are not as strict as they were a few years ago. Recently, qualifications have changed. If it has been three years since the buyers experienced bankruptcy or foreclosure and they have a credit score of 620 a conventional mortgage can be obtained. In addition, the Federal Housing Association or FHA Whereas in years past it was five years and a minimum credit score of
This pool of buyers, referred to as “Boomerang buyers” do have options to get into a home of their own. Among these options are Rent to Own, or a lease purchase, Owner Finance, short term private investor purchase, family members, or conventional mortgage depending on credit score and length of time that has lapsed since their short sale or foreclosure. The idea of a lease purchase probably seems the most logically to many “boomerang buyers” given that they are most likely renting right now. The buyer would find a property willing to agree to a lease purchase. A price would be …show more content…
Private investors may be found through local banks and real estate agents. The investor would purchase the sought after property for an agreed price and interest rate for a short term only. A private investor is just looking to tie up his/her money for 6-12 months while earning a higher rate of interest than he/she could at a bank. Therefore, the “boomerang buyer” must be confident that at the end of the contract term another source of financing can be obtained. Many “boomerang buyers” may not realize that the qualifications for a conditional mortgage are not as strict as they were a few years ago. Recently, qualifications have changed. If it has been three years since the buyers experienced bankruptcy or foreclosure and they have a credit score of 620 a conventional mortgage can be obtained. In addition, the Federal Housing Association or FHA Whereas in years past it was five years and a minimum credit score of