• n2burns@lemmy.ca
    link
    fedilink
    arrow-up
    4
    arrow-down
    9
    ·
    5 months ago

    I disagree. If borrowers are unable to afford a down payment, that almost certainly means they have very little financial flexibility, which is necessary when owning a home. Now, I’m not trying to blame borrowers for this scenario. They are living through an affordability crisis and are almost certainly affected by the housing crisis if they are renting (as opposed to living rent-free/light with family). By allowing zero down mortgages, it’s treating a symptom, but letting the underlying causes fester.

    • ski11erboi@lemm.ee
      link
      fedilink
      arrow-up
      15
      ·
      5 months ago

      Sure but if people have been able to consistently pay rent higher than their mortgage I think they’ll be fine.

      • n2burns@lemmy.ca
        link
        fedilink
        arrow-up
        3
        arrow-down
        1
        ·
        edit-2
        5 months ago

        I know that’s the case in some markets, but I think it’s pretty close in most places. Especially when you consider the other expenses of ownership like maintenance, property tax, insurance, etc. I know in my situation, we have a few hundred dollars a month more flexibility by owning instead of renting.

    • Car@lemmy.dbzer0.com
      link
      fedilink
      arrow-up
      5
      ·
      5 months ago

      Zero down may be the only way a family can afford to buy a home. In a time where older starter homes are north of 300k, we’re asking families to save 60k cash to get to 20% down. That’s about the median household income.

      If you’re able to save 10% of your paycheck (after taxes), you’re going to spend about 10 years saving for today’s price. Which will likely be much lower than next years price.

      • granolabar@kbin.melroy.org
        link
        fedilink
        arrow-up
        1
        arrow-down
        1
        ·
        5 months ago

        Family making 60k, has no business buying 300k house esp with zero down… How do you even budget these numbers lol

        Get real

    • Varyk@sh.itjust.works
      link
      fedilink
      arrow-up
      3
      ·
      edit-2
      5 months ago

      I understand your concern, but that’s throwing the baby out with the bath water. And then throwing out a baby next door from a crib who wasn’t even taking a bath.

      Treating a symptom does not mean you aren’t working on a cure.

      In this example, specifically, working with zero down mortgages affords borrowers the ability to make their own choices without stopping me you or anyone else from trying to change the underlying mortgage system.

      It’s one more tool

    • wagesj45@kbin.run
      link
      fedilink
      arrow-up
      3
      ·
      5 months ago

      If borrowers are unable to afford a down payment, that almost certainly means they have very little financial flexibility.

      Possibly. It might also deplete their only source of financial flexibility, too.

    • partial_accumen@lemmy.world
      link
      fedilink
      arrow-up
      2
      ·
      5 months ago

      I disagree. If borrowers are unable to afford a down payment, that almost certainly means they have very little financial flexibility, which is necessary when owning a home.

      I think you’re looking at this one particular point in a vacuum. On the surface it would appear that someone that can’t produce $20k-$40k cash to put down on a house doesn’t have the financial wherewithal to produce $20k in cash that may be needed to replace a roof or HVAC system on a house.

      However, zoom out a bit and you’ll see these non-homeowners have been financially savvy to successfully navigating rental rates outpacing inflation by 40%! source. Once they have a fixed rate mortgage, their ability to plan an save for home repairs becomes much more attainable.

      Ask yourself this: How would your personal finances look right now if your house payment had been rising every year for the last decade and is now 40% higher that when you signed your mortgage paperwork?