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Old 04-29-2018, 04:00 PM
 
2,252 posts, read 1,393,549 times
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Quote:
Originally Posted by SportyandMisty View Post
What's wrong with low income folks adding more value to society so they earn more money?
Exactly.

“Giving” them a shot at home ownership is what causes distortions in the market that eventually snap back and cause economic suffering.

You earn a home by creating value.


And as far as the banks: “for those who fail to retain, infancy is eternal”
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Old 04-29-2018, 07:50 PM
 
12,404 posts, read 9,212,610 times
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Quote:
Originally Posted by GolfingCat View Post
What's wrong with giving low income folks a shot at home ownership?
What is right with it, if they can't pay the bill?
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Old 04-29-2018, 08:17 PM
 
4,581 posts, read 6,150,009 times
Reputation: 5218
Something people are missing is the current President is pro Real Estate. The goal is money.
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Old 04-29-2018, 09:00 PM
 
1,046 posts, read 713,298 times
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Quote:
Originally Posted by GolfingCat View Post
What's wrong with giving low income folks a shot at home ownership?

Right...we saw how that turned out and have obviously learned nothing.
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Old 04-29-2018, 09:36 PM
 
Location: Formerly Pleasanton Ca, now in Marietta Ga
4,115 posts, read 3,410,513 times
Reputation: 5648
Maybe Golfing Cat is very young and has idealistic visions of the world and simply doesn't know what actually happened.
It wouldn't be the first time someone has posted on this forum who didn't know what they were talking about although if they saw the responses maybe they will have learned the reason why.
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Old 04-29-2018, 10:15 PM
 
Location: Jacksonville, FL
6,695 posts, read 7,362,008 times
Reputation: 5443
Quote:
Originally Posted by aslowdodge View Post
Maybe Golfing Cat is very young and has idealistic visions of the world and simply doesn't know what actually happened.
It wouldn't be the first time someone has posted on this forum who didn't know what they were talking about although if they saw the responses maybe they will have learned the reason why.
I'm hoping it was sarcasm, but just in case:

Quote:
Originally Posted by GolfingCat View Post
What's wrong with giving low income folks a shot at home ownership?
Low-income folks are typically a terrible credit risk for multiple reasons:
1) Little or no savings. When you own a home, Murphy likes to show up frequently. If you don't have a savings account, there is a great likelihood that you will have to make a choice between fixing the house or making the mortgage payment.
2) Poor job stability. Not every person earning a low income is a job-hopper (either by choice or by circumstance), but a large segment are. What happens when you lose or leave your job and are unable to make the house payment?

There are more reasons, but those two are enough to make most lenders and landlords shy away from lending to the low-income crowd.
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Old 04-29-2018, 11:51 PM
 
Location: Formerly Pleasanton Ca, now in Marietta Ga
4,115 posts, read 3,410,513 times
Reputation: 5648
Quote:
Originally Posted by JimRom View Post
I'm hoping it was sarcasm, but just in case:


Low-income folks are typically a terrible credit risk for multiple reasons:
1) Little or no savings. When you own a home, Murphy likes to show up frequently. If you don't have a savings account, there is a great likelihood that you will have to make a choice between fixing the house or making the mortgage payment.
2) Poor job stability. Not every person earning a low income is a job-hopper (either by choice or by circumstance), but a large segment are. What happens when you lose or leave your job and are unable to make the house payment?

There are more reasons, but those two are enough to make most lenders and landlords shy away from lending to the low-income crowd.
It was not sarcasm.
Some people are just idealistic and pop off with what sounds like a nice idea not understanding the ramifications.
If you are on CD for any time you will notice many people make statements that are uninformed or wrong.
Several posters called the poster out and I explained early on why low income people are not a good idea.
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Old 04-30-2018, 06:09 AM
 
Location: SW Florida
9,126 posts, read 3,940,319 times
Reputation: 18827
Quote:
Originally Posted by GolfingCat View Post
What's wrong with giving low income folks a shot at home ownership?
Nothing as long as they have the finances to keep the house up and not let it fall into disrepair. I have several homes where I live in a nice area where you can tell the owners have either fallen on hard times or just don't care.
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Old 04-30-2018, 09:32 AM
 
Location: Tennessee
21,023 posts, read 15,317,177 times
Reputation: 23856
The biggest local credit union in my area is now doing 105% LTV mortgages to assist people with closing costs. Property taxes are between roughly 0.5%-0.7% of the market value of the home annually outside the city limits. Housing prices are generally low, so most start home property taxes are under $1,000 annually. There's no state income tax, so your dollar stretches a bit farther here. Bankrate has this credit union at five stars for solvency. As far as I know, I don't think they sell their mortgages onto the secondary market.

Rent is not cheap. A 1BR in a nice complex will set you back about $700/month. A 2BR will run $800-$900, with houses in good condition more than that.

It's much cheaper to own a starter house than rent, and unless you're just at the bottom of the barrel financially, most people can swing a $100,000 house here.
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Old 04-30-2018, 09:52 AM
 
3,189 posts, read 2,728,779 times
Reputation: 6488
Quote:
Originally Posted by Serious Conversation View Post
The biggest local credit union in my area is now doing 105% LTV mortgages to assist people with closing costs. As far as I know, I don't think they sell their mortgages onto the secondary market.

.
I can't imagine there is a secondary market for 105% LTV mortgages but, hey, there's a market for bad debt of all sorts so who knows. It could be a lucrative although sleazy business.
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