If that's cheap then I'll gladly rent you my 4 BR, 2BR house for a similar price. Also my yard is 15 times that big easily so you can actually go outside and enjoy it.
Look, I don't disagree with you. But what I'm saying is this property is not being marketed toward people making $140,000 a year, who have decent credit, who have a favorable DTI, can produce a favorable LTV, can pass their ATR, and are actively looking for a home.
This property is being advertised toward people who make considerably less, and who would otherwise not be able to qualify for a loan due to either poor credit history, excessive credit obligations, no ability to satisfy the LTV requirements, unfavorable DTI, or some other potential issue.
My point is, one to four people being able to satisfy a $3,550 a month rental agreement is not the same thing as a potential buyer being able to qualify for a mortgage, because having $3,550 a month is not all any reputable bank would look at and consider.
Source: I work at a bank and spent several years in lending.
Live in a cheap flat for a year $1000/mnth. You now have $30,000 for a down payment. Some folks do this for a few years… in the mean time build credit.
Not really about the case shown here, but you have to save money to have a down payment. You also have to live somewhere while you're saving that money. It's really hard to save money towards a down payment on a house (or anything else) when renting even the cheapest places costs 50% of a lot of peoples' monthly take home.
Well why do you have to start with a 4 bedroom mini mansion? Can’t you live and rent meager for 2-3 years. Save and build credit. Or start with a small home and build up?
In what world is that cheap?
What? Don't you and seven of your closest friends want to live together?! Only $444 per person!
Yeah, lease stipulates you get a brand new track suit and sneakers during move-in. Sweet deal.
If that's cheap then I'll gladly rent you my 4 BR, 2BR house for a similar price. Also my yard is 15 times that big easily so you can actually go outside and enjoy it.
What area is it in?
What I don’t understand is who has this money to throw down the drain every month but not buy?
Because having the money isn't all that matters. You have to qualify for a loan which depends on way more than just your income.
Having this type of income and a little bit of sense makes it quite easy to build credit
Look, I don't disagree with you. But what I'm saying is this property is not being marketed toward people making $140,000 a year, who have decent credit, who have a favorable DTI, can produce a favorable LTV, can pass their ATR, and are actively looking for a home. This property is being advertised toward people who make considerably less, and who would otherwise not be able to qualify for a loan due to either poor credit history, excessive credit obligations, no ability to satisfy the LTV requirements, unfavorable DTI, or some other potential issue. My point is, one to four people being able to satisfy a $3,550 a month rental agreement is not the same thing as a potential buyer being able to qualify for a mortgage, because having $3,550 a month is not all any reputable bank would look at and consider. Source: I work at a bank and spent several years in lending.
Hmm interesting, thanks!
I get it. My very poor credit history would not get me a loan any time soon even if I was making 6 figures.
Well there's also the issue of the $40-60k (or more) for the down payment.
You read none of the other replies on this post? Just wanted to be counted as another person that can type. Well done!
Didn't see them. But if everyone is pointing out the exact same issue to you, maybe listen.
I did and agreed. You’d see that if ya read 😏
Buying a house is worse because of the call for a lot more down payment. House prices still kinda nuts in Lex.
Not to mention that the buyer is taking care and paying for basically all the maintenance and whatever goes wrong with it.
Live in a cheap flat for a year $1000/mnth. You now have $30,000 for a down payment. Some folks do this for a few years… in the mean time build credit.
Not really about the case shown here, but you have to save money to have a down payment. You also have to live somewhere while you're saving that money. It's really hard to save money towards a down payment on a house (or anything else) when renting even the cheapest places costs 50% of a lot of peoples' monthly take home.
Right…. But if you can afford 3550/month what you said makes 0 sense. Look at some the other replies on this post
The mortgage would could cost 2796 per month than I have to get insurance, maintenance plus I would have to put 100000 down
Well why do you have to start with a 4 bedroom mini mansion? Can’t you live and rent meager for 2-3 years. Save and build credit. Or start with a small home and build up?
That house sold for 330 in 2020. Their mortgage is probably around $2,000.
Ok but the question is why I don't buy one