Don’t forget the tightening of lending rules going on. Even if you have the down payment, most will not qualify for the mortgage unless they have some one co-sign (bank thinks you can’t pay $1000 mortgage, so you have to pay $2000 rent).
Good point. I’d never get approved for a mortgage on my own, so I’ll be stuck paying rent that’s more than any normal mortgage payment. It’s so clearly rigged against me and people like me.
The funny thing is if you incorporate your company can get a mortgage as long as you can show income though rent (you can list yourself as one of the renters for some reason). The rates are crap, but you can get one.
This seems to encourage more landlords over general ownership.
It is where I am, and the issue is indeed finding a house to match your income since the prices are going up everywhere. I think it is insane when families buy a 1 million $ home with a $200,000 income. But that is still cheaper then them renting and if the bank uses say a 30% of income rule then very few qualify.
What % of renter income is rent? Does anyone care?
When I was younger I worked at a bank (regional office doing loan verification of all things) 2009 ish and I can tell you banks can be and are often stupid, foreclosures are not good or wanted, but most of all the incentives for individuals don’t line up with the banks overall best interest.
Don’t forget the tightening of lending rules going on. Even if you have the down payment, most will not qualify for the mortgage unless they have some one co-sign (bank thinks you can’t pay $1000 mortgage, so you have to pay $2000 rent).
Good point. I’d never get approved for a mortgage on my own, so I’ll be stuck paying rent that’s more than any normal mortgage payment. It’s so clearly rigged against me and people like me.
The funny thing is if you incorporate your company can get a mortgage as long as you can show income though rent (you can list yourself as one of the renters for some reason). The rates are crap, but you can get one.
This seems to encourage more landlords over general ownership.
Co-signing on mortgages us not a standard practice tho
If you got down payment % and income ratio, you get a mortgage. It ain’t that hard, bigger issue is finding a house to match you income.
It is where I am, and the issue is indeed finding a house to match your income since the prices are going up everywhere. I think it is insane when families buy a 1 million $ home with a $200,000 income. But that is still cheaper then them renting and if the bank uses say a 30% of income rule then very few qualify.
What % of renter income is rent? Does anyone care?
When I was young people could not rent places unless they could make 30% of gross…
I think that stopped around 2015 or at least I don’t hear any such ratios stopping people front renting.
Many people paying half of their incomes lol
I know of people paying 70% plus and sharing accomidation, shits rough and getting coarser.
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Sounds like the crazy lending during the sub prime boom. Not saying you are a bad bet but that seems like a crazy risk.
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When I was younger I worked at a bank (regional office doing loan verification of all things) 2009 ish and I can tell you banks can be and are often stupid, foreclosures are not good or wanted, but most of all the incentives for individuals don’t line up with the banks overall best interest.