Many Scottsdale homebuyers are noticing the immense improvements in the Scottsdale real estate market. However, several homeowners who lost their homes during and after the market crash have yet to benefit from the upturn. New Federal Housing Administration (FHA) guidelines were recently brought forth to remedy this. Introduced in August, these new rules are helping to pave the way for homeowners with foreclosures or short sales to re-enter the Scottsdale housing market.
The U.S. Department of Housing and Urban Development (HUD) announced the change that allows short-salers and foreclosed homeowners to attain new mortgages within 12 months of the event. Under the previous FHA guidelines, Scottsdale buyers with short sales or foreclosures on their credit records would have to wait 3 years before being able to re-enter the Scottsdale housing market. Data from RealtyTrac shows that the changes affect around 2.5 million people nationwide. These 2.5 million homebuyers are known as boomerang buyers.
Millions of boomerang buyers may now be qualified for an FHA mortgage. Phoenix, one of the cities hit the hardest after the housing bubble burst, is estimated to be a top market for boomerang buyers. In the next year alone, boomerang buyers may account for just under one in five home sales in Phoenix.
Buyers are being drawn back into the Scottsdale housing market in part due to rising home values and an improving economy. More people are gaining financial status to purchase new homes while hoping to avoid higher home prices and mortgage rates.
Join the millions of buyers who are getting ahead of the rising interest rates and landing the homes of their dreams. You can follow the current Scottsdale housing market by visiting our Market Trends page. Learn more about Scottsdale AZ homes for sale by calling me at (602) 791-0536.
Carmen Brodeur JD
Trillium Properties, LLC
9825 E Bell Road, Suite 120, Scottsdale AZ 85260