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I'm reading this thread trying to understand how low income people are qualifying for loans. Most of the low income people I know have horrible credit.
I'm reading this thread trying to understand how low income people are qualifying for loans. Most of the low income people I know have horrible credit.
Credit still matters, right?
Yes but with FHA you only need a 580 score to qualify.
Also low income does not mean you don't pay your bills. There are dumb low income people who think they can live like the rich and throw their money away and there are low income people who always pay their bills and spend what little they have wisely and go without or buy used.
... there are low income people who always pay their bills and spend what little they have wisely and go without or buy used.
In fact, there are a lot of people of limited income who do this. They buy used cars and learn how to keep them running. They camp on vacation. They raise gardens and cook from scratch. They use fans and sweaters rather than changing the thermostat.
Then these low income people reach a point where they realize they've lived without living and haven't moved one single step forward. You can bet your behind I'll never give up internet again knowing that it did squat for me.
I'm a homeowner making the equivalent of full time minimum wage (plus child support) and it isn't a dream, it's a nightmare.
In February I bought a $4100 furnace. Roughly 25% of my annual income.
I bought the home when I made $40K per year and had equity from a previous home to put as a down payment (25% of of the purchase price) I Will make money on this house, but until I can sell it (when my daughter graduates from high school in 2018) It is constant chore to maintain.
I"m looking for a condo so I can do things i enjoy in my spare time instead of maintaining/cleaning my home.
This is the 4th house I've owned: The first 3 we just broke even on, so IMHO, home ownership is NOT the great investment it is made out to be.
Mom is on Social Security and needed a furnace... Utility Red Tagged it.
She got 3 estimates and the least expensive was $5400 and the highest $5800... she want a high efficiency unit.
Told her if she could wait 10 days I would do it for her...
I bought the same exact furnace in two of the quotes for $1200 delivered... spent another $150 at a sheet metal shop to make a transition...
Her new furnace cost her a total of $1400 and she also got a damn fine installation... the inspector even commented on this...
Point is some people should not own homes if they are on a fixed budget and pay retail...
Mom saved $4000 and it took me a day and half to do the job!
Sigh. People don't just go out and 'get' an average income. I am a disabled vet. My 'income' is fixed. This means I'll never be able to afford a house. Most low income people are in the same boat. There is little saving when you are low income. Trust me. I wasted several years doing just that only to find out that home ownership will never happen for me. I could have spent that time living much better, or at least eating decent and healthy food, maybe even watching a movie or two. Instead, I drastically lowered my standard of living in the misguided hope that I'd be able to own a place where I could live for more than two years, or could paint the walls, or maybe not have landlords and maintenance coming in whenever they damn well pleased.
This thread is about low income people so you're 'get a $50k+ income doesn't belong here.
One of my friends is a disabled vet... amputee.
He used his benefits to buy a 3 unit building... he lives in one unit and rents out the others... the rents counted towards his income and in 7 years it will be paid off and now worth closed to a million dollars in the SF Bay Area and finding renters is never an issue...
I guess the key is going into business and in this case using your military benefits to work for you... you more than earned them.
He used his benefits to buy a 3 unit building... he lives in one unit and rents out the others... the rents counted towards his income and in 7 years it will be paid off and now worth closed to a million dollars in the SF Bay Area and finding renters is never an issue...
I guess the key is going into business and in this case using your military benefits to work for you... you more than earned them.
What military benefits? If you are discharged early, even for a military related injury or through something else that is no fault of your own, they won't give you anything. I spent ten years just to be able to get them to pay for my medical care (after I had already gone into the worst sort of debt imaginable paying it all out of pocket) and that just happened to come with monthly disability payments. Other than that, I got nothing. Joining was the worst decision of my life. Any time I hear of a young person wanting to join the military, I campaign hard for them to reconsider.
These cheap condos with high HOA fees probably sell for cash. Coming up with $20K cash is not beyond the reach of many low income people.
I saw it last week...
A 22 year old coworker that just started at $10 and hour raised 18k in a week to pay for her brother's funeral... he was shot.
She grew up in Section 8 Housing and her family still lives in Section 8 Housing... yet they were able to come up with 18k for an elaborate funeral...
I got myself into hot water when I commented saying isn't 18k a lot of money to spend... was told I was insensitive and your can't put a price on somethings... he had a 7 month old daughter and they wanted to do the funeral for her so later she will know.
Anyway... my father had a very nice funeral and the place was packed... we had it a church and the total cost with top catering was 6k...
I guess I am one of those outliers I keep reading about...
I'm reading this thread trying to understand how low income people are qualifying for loans. Most of the low income people I know have horrible credit.
Credit still matters, right?
Either there are programs connected to military service or government... this is the most popular way I see.
Then there is unconventional financing which can be anything from Seller carrying the full mortgage to term or for shorter periods...
Then there are faith based programs like Habitat for Humanity that put people into home for about the cost of paying rent....
Then there are low income programs through HUD called Pathway to Ownership...
The point is if a person doesn't fit into the "Box"... you have to think outside the "Box"
My only other comment is some of the alternative financing that I used to buy property have come under attack as predatory or worse...
When I bought my third home for no money down with seller financing for 5 years... this meant I had a huge balloon payment 5 years from the escrow closed... to some this would be an affront to all that is decent... to me it was my shot or opportunity to reach my goal
I had 5 years to make repairs and when the time was up I could sell or refinance my greatly improved property or I could pay off the note....
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