Quote:
Originally Posted by RickFLM4
People paying $2K / mo. in rent on a $215K home need to reassess their buy vs. rent decision.
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I sell real estate for a living down here.
In more cases than not in these price points I see the following scenarios as to why buyer’s can’t:
Number one - Debt-to-income - this is probably 80% of the population in this price bracket that can’t buy a home. Mainly student-loan related, but child-support, credit-cards, bad car loans. Lots of reasons. They can afford the (inflated) monthly payments of renting, but no banks will underwrite their loans for the same priced house, even though when financing and PMI included the monthly payment would be much cheaper...
Second scenario is more of a state specific thing but I’ve had a few cases this year where the husband or wife’s DACA number wouldn’t qualify them to co-sign and their other half couldn’t finance the house on their own. Or one half of the couple has no credit at all and lenders having to do modified stated-income for them.