1. Traditional, entry level buyers – They have been waiting out the housing market downturn from 7 years ago. For this group, if they can provide the proper documentation, they can get a mortgage.
2. & 3. Move up and move down buyers – These buyers had a mortgage a long time ago, and now want a different home due to a change in their life circumstances (bigger or smaller). There are 53 million people with a mortgage, 40 million of whom are “in the money.” For those people, if they can provide documentation of 3 years of steady income and have good credit, it then is a paperwork issue. Chances are great that credit will begin to flow easier for this group.
4. Investors – Investors are back for the last 18 months in spades and are doing very well. The foreclosure market has given way to tons of opportunities for investors to make substantial profits in the housing market.
5. Boomerang buyers – This group went through a foreclosure already and their 3-4 year waiting period is up. These buyers will get money through the FHA, despite being previously foreclosed upon. To obtain a new mortgage, they need to show proof of income and stability. Those who have no money and should not have gotten a mortgage in the first place will not be back. Boomerang buyers may be people who are currently renting a home with a substantial monthly rental fee. They are able to show they have income and are qualified.
Watch the entire video here.