More people who lost their home during the darkest days of the recession are doing what might have been unthinkable just a few years ago: They're becoming homeowners again. "Boomerang buyer"-former homeowners who have gone through a foreclosure, short sale or bankruptcy-are restoring their credit ratings, getting mortgage approval and hitting the street in pursuit of homeownership thanks to the new FHA guidelines.
Introduced August 15, 2013, by the U.S. Dept. of Housing and Urban Development, the new guidelines allow these previous homeowners with a black mark on their credit history to qualify for a new mortgage as soon as 12 months after foreclosure or pre-foreclosure sale (typically a short sale). The buyer still must qualify from an income and credit score standpoint and the qualifications are tougher now than when they originally purchased their homes. But, instead of waiting 3 - 5 years to re-enter the home market, they can now do so in 12 months.
(Information above gathered from Forbes and StarTribune)
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