Re:No Pay Stub? No Problem. Unconventional Mortgages Make a ...
by dragonwriter on Wednesday January 23, 2019 @02:46PM
(#18981966)
> She got a 600k loan as a student based on bank statements which is insane.
She got a 600K loan against a property she already owned a substantial share of (not a purchase money loan with nothing down) as a working home health aide who is also a nursing student.
> In 5 years it’s very possible it could become unaffordable.
In 5 years it's quite likely that higher income and lower loan to asset value will let her refinance it down, too.
> What about the other people? The atricle mentions these loans grew by 25% in 2018.
Subprime mortgages aren't generally a problem on their own, absent the kind of incentives to misrepresent their quality for sales of securities that existed in the last housing crisis. To the extent that hasn't been corrected, that's a problem, but let's not target subprime lending as the problem (heck, in the last crisis, a lot of the problem loans weren't even subprime.)
She got a 600K loan against a property she already owned a substantial share of (not a purchase money loan with nothing down) as a working home health aide who is also a nursing student.
> In 5 years it’s very possible it could become unaffordable.
In 5 years it's quite likely that higher income and lower loan to asset value will let her refinance it down, too.
> What about the other people? The atricle mentions these loans grew by 25% in 2018.
Subprime mortgages aren't generally a problem on their own, absent the kind of incentives to misrepresent their quality for sales of securities that existed in the last housing crisis. To the extent that hasn't been corrected, that's a problem, but let's not target subprime lending as the problem (heck, in the last crisis, a lot of the problem loans weren't even subprime.)