https://www.nytimes.com/2022/09/01/b...mortgages.html

Bank of America is offering mortgages for first-time homeowners that do not require down payments, minimum credit scores or closing costs in a program that aims to boost homeownership rates.

I have always believed that many people should not own homes, and this will facilitate many new foreclosures.

However, part of me is looking forward to scooping up some more real estate when the housing prices plummet.
I didn't have anything to do with it, but I will gladly take advantage of it.

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Political Correctness, is Fascism masquerading as manners - George Carlin.

I was wondering something similar like will some bite off more than they can chew
AND
I hope we don't bail any lenders out; if we bail anyone out how about the buyer, but I'd as soon let the chips fall where they may and maybe both will have learned a lesson.
And housing prices will fall in the process. they are too (and artificially imho) high.

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Lenders should never ALLOW people to bite off more than they can chew...

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"You get the respect that you give" - cnredd

back during the last housing crisis i asked a guy i work with if a person making $80,000 a year could afford a $300,000 house and his answer was yes.
and i said there's your problem.

what do you think?
how much can someone making $80,000 a year afford for a house?
generally speaking ballpark range knowing it differs based on other variables but just assume no other major debts exist. and that it's either no money down or low money down as in a va loan or fha loan.

my general rule of thumb is two times annual income as a starting point.

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"Don't trade what you want most for what you want in a moment." - unknown

I followed that rule. My first house was 50k and I was making about 25k a year.

I think the banks know that most of these folks will never pay off that loan, even if they do stay in the home. Hell, with no down they will be paying
mortgage insurance for 30 years, as most people do not know that once they have that 20% equity they can stop paying it.

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Political Correctness, is Fascism masquerading as manners - George Carlin.

It's been a while since I dealt with the mortgage game, but isn't it the lenders who say that 30% of your income for the mortgage payment?

It's interesting when my spouse and I went house hunting the first time, many years ago. The realtor ran credit checks on us, and decided what we could afford, which was about $30,000 more then we wanted to spend. We repeatedly told the realtor what out budget was, and he kept trying to show properties above that.

We finally told him no more, and he finally started showing us houses in OUR range. We eventually bough a piece of land and built our own house, in our price range.

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Your life is the sum total of the choices you make.
If you don't laugh at yourself, a whole bunch of people will volunteer to do it for you
I never lose. I either win, or I learn....

Maybe the Federal Government should back the loans and let the tax payers protect the banks.

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Trump Doesn’t Have Political Capital, He Has People Capital.