Do they have 20% down, an above average credit score, more than a year or two at the same job and verifiable income? Any bank will give happily them a loan for up to 30-some percent of their income.
That is an oversimplification, but do you really want to go back to no doc loans?
Do you have a real - life example of this?
I don’t know anywhere that you can get an $850 mortgage payment right now. The average mortgage payment on the median priced home is over $2k per month.
If someone is qualified a bank or mortgage company will finance them. That’s how they make money.
A $850 a month payment with a 30 year fixed rate mortgage at today’s rate you can borrow $140,000, that’s a $175,000 home with 20% down. That $850 a month does not include property taxes or insurance which could be another $400 a month or more depending on the state. Plus the homeowner is responsible for all utilities including water, sewer and garbage which are usually included in rent.
Housing prices vary tremendously. The choices below are lower than the national average, but possible to get in some places.
What choices? And, what are the comparable rents?
Where are you finding $120,000 houses?
Kansas City numbers.
Median home prices.
https://www.realtor.com/realestateandhomes-search/Kansas-City_MO/overview
Median rent
No I’m nor. I am discouraging “investors” from driving up the price of houses. What we got in our 20’s and 30’s, our kids may not get until their 40’s.
But bears seems to feel that the whole problem in 2008 was because the government “forced” banks to make those loans. They didn’t. If the government did anything, it was to facilitate the “trading” of that shit. Bears won’t lay any blame on the loan brokers - it’s all on the person who was told that they could buy a house for what they were paying in rent…that completed an application, only to have it “modified” by brokers, and who made the mistake of trusting someone. Brokers earned a bigger commission on a trash sub prime loan than they did on legitimate fixed rate loans. And in reading the book, the stuff that went on AFTER the loans were made was jaw dropping. But…it’s easier to say that these scummy, dirty, low life cheating poor people managed to fuck over the world economy by suddenly deciding to buy a house.
What are the rents there?
I corrected myself.
I looked at the KC area, a median cost house would be about $1600 per month (pre insurance and taxes) and the average rent is about $1200.
IDK
I’ve moved on from 2008, how do we prevent that from happening again?
Here are some ideas, minimum 20% down, an above average credit score, at least a year or two in the same job, verifiable income, debt to income ratio under 35% of gross pay. Do you agree, if not what do you think should be the minimum requirements to avoid another 2008?
You said the following:
I would like one real-life example of such a locale.
I am pretty sure he stole that from a FB meme, and wasn’t expecting you to call him out.
You realize I pulled the actual numbers out of my ass, right? I don’t have specifics and my home is paid off. But I am hearing stories from friends–don’t know their particulars–about having to pay more in rent than they’d pay for a mortgage and not being able to get a loan.
Homeownership is very attainable in America today.
According to a loan calculator a person or family earning under $60,000 a year can afford to buy a median priced home in Kansas City, assuming the meet the credit and down payment qualifications requirements. That’s less than $30 an hour for an individual or a couple both working full time at Amazon at $15 an hour.
At 6% your required annual income is $57,819
Maximum monthly payment (PITI) $1,349.10
Purchase price:* $250,000
Down payment:* $50,000
Loan amount:$200,000.00
Loan term: 30 year fixed