Posted on: 2 November 2015
If you were one of the more than 5 million people who lost their home during the recent recession experienced in the United States, renting your current home is probably already a bit frustrating. Between the inability to make any major changes and knowing that each month you are helping your landlord pay off the home you are living in, renting a home can be a big step down for anyone who has enjoyed home ownership. Fortunately, America's recovery from the recession is being seen in a variety of ways, including increasing numbers of homes being purchased. It is likely that now is also the right time for you to regain the "homeowner" title.
1.There May Have Been Enough Time Since You Lost Your Home That Its No Longer Impacting Your Credit Score
It is important to note that if you lost your home early in the recession, which officially started in December of 2007, the details of the foreclosure, short sale, etc. are likely to no longer be on your credit report. Most positive or negative reports stay on your credit for up to seven years after being listed, with the exception of a bankruptcy, which may last up to ten years. As a result, if the final entries regarding the loss of your home were put on your credit at least seven years ago, it is a good time to get a copy of your credit report, including your credit score.
Then, talk to a lender about getting pre-qualified to buy a home. Even without the choices listed below, a standard mortgage is easier to get now than you might think.
2. New Lending Practices Are Available That Work With Issues Like Job Loss, Low Credit Scores And Low Income
One of the big problems that isn't always discussed is that, although the majority of Americans who want to work are now employed, their income isn't the same as it was before. Therefore, the federal government has stepped up to make it a bit easier to get a home loan.
For instance, you may find that because of your recent difficulties, you qualify for a special loan that is guaranteed by the federal government, as soon as one year after you lost your home. That option exists until the end of September of 2016. It is important to remember that you must still qualify for your home loan from a lender. The government will simply guarantee the loan, which reduces much of the risk to the lender.
Another fact to consider is that new Federal Housing Administration (FHA) has a new Back to Work – Extenuating Circumstances program. Specifically, it is helpful for people who experienced a one-time hardship due to the recession, as opposed to years of poor financial choices. Qualified borrowers are now being given to some qualified persons as little as a year after a:
Deed in lieu of foreclosure
If you were one of the many Americans forced out of your home during the recession, you may be surprised to learn that now is a great time to move out of your rental property and buy a new home.Share