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People who fight for $15 minimum wage can't afford to own a home. That's why.
True. Those making minimum wage can't put together a down payment for a mortgage, nor can they qualify for one. They might be able to do a owner financed or land contract, but those type of deals aren't the norm in all areas.
So while a landlord might want 3x the rent, the lender is also going to look at income, debt and the ability to pay.
Minimum wage was never intended to be a livable wage, but that's what people are trying to make it. Sad that so many want to do so little and yet expect to get to so much.
That depends on where they live. LL want 3 times the rent Mortage co don't.
that is so true---knew neighbor with multiple properties--she raised rent yearly--not cause she had to but to cover the amt of needless shopping she did(had storage units full of unopened boxes) felt pity for her tenants---all properties were in low income areas
The people pushing for a $15/hr minimum wage say that's why they want $15.
Why don't they say The Mortgage Won't Wait?
Do landlords have an instant gratification issue that lenders don't have?
Well - I have mortgage payments on my rental properties - so yep, I need my tenants money to pay Wells Fargo. I don't have the luxury of working with non-paying tenants to allow that to catch up or what ever when they get behind.
From the tenants prospective - a bank is often willing to work with them to keep them in the house (move late or missing payments to the back of the loan). A landlord proceeds directly to eviction.....try renting with a prior eviction.
When I got my Mortages the bank want 25% of income for payments. LL Insist on 30% Ther are TONS of loans out there with No or Low down payment. There are also Rent to own deals where a % of the rent goes towards a Down payment. Once you reach that you turn the Rent into payments.
HUD helps low income folks Buy
USDA also helps low income
Habbitat for Humanity Helps
Telemond also Helps
& the List goes on....
People who fight for $15 minimum wage can't afford to own a home. That's why.
Mortgage lenders don't immediately rev into legal action mode at a 30-day late payment, landlords do in five days. Something gets landlords worked up that doesn't faze mortgage lenders.
When I got my Mortages the bank want 25% of income for payments. LL Insist on 30% Ther are TONS of loans out there with No or Low down payment. There are also Rent to own deals where a % of the rent goes towards a Down payment. Once you reach that you turn the Rent into payments.
HUD helps low income folks Buy
USDA also helps low income
Habbitat for Humanity Helps
Telemond also Helps
& the List goes on....
I have never ever seen a rent-to-own deal that wasn't an unfavorable and high-risk deal.
I don't know anyone making minimum wage who ever bought a home, except for someone who bought her grandmother's home in a declining neighborhood for nothing down and a monthly payment lower than rent.
Well - I have mortgage payments on my rental properties - so yep, I need my tenants money to pay Wells Fargo. I don't have the luxury of working with non-paying tenants to allow that to catch up or what ever when they get behind.
From the tenants prospective - a bank is often willing to work with them to keep them in the house (move late or missing payments to the back of the loan). A landlord proceeds directly to eviction.....try renting with a prior eviction.
In your case, it's the landlord who can't wait, not the mortgage lender. It's always the landlord who can't wait. Sounds to me like an instant gratification issue.
that is so true---knew neighbor with multiple properties--she raised rent yearly--not cause she had to but to cover the amt of needless shopping she did(had storage units full of unopened boxes) felt pity for her tenants---all properties were in low income areas:(
Rental properties in low income areas generally are more profitable than rental properties in middle or high income areas. The properties are way cheaper to buy but the rent is inflated relative to the mortgage.
e.g. buy middle income SFR for $150K and rent for $1500/mo or buy low income SFR for $75K and rent for $1200/mo.
True. Those making minimum wage can't put together a down payment for a mortgage, nor can they qualify for one. They might be able to do a owner financed or land contract, but those type of deals aren't the norm in all areas.
So while a landlord might want 3x the rent, the lender is also going to look at income, debt and the ability to pay.
Minimum wage was never intended to be a livable wage, but that's what people are trying to make it. Sad that so many want to do so little and yet expect to get to so much.
Which penalizes the frugal low earner. For the past ten years I have been paying 45-75% of my income on rent and obviously I'm never going to meet a lender's ratios, but I've always paid the rent on time. So I don't understand the lender's irrational rigid thinking on ratios.
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