Debatable Debating

Join

Dave Ramsey books

2»

Replies

  • whierd
    whierd Posts: 14,025 Member
    And by the way, other than my student loan debt...my husband and I are debt free. Our cars are paid off. We do not own a home yet. But I am sure we will have a problem when it comes to financing because we have no credit history other than my student loans of course.

    We too have laptops, flat screen tvs, and a house full of furniture all of which we have happily paid cash for. Didn't get stuff until we had the money for it.

    This is basically what I have done my entire life. Sadly, it has hurt me credit wise. I am 26 and have very little established credit. My fiance and I have been trying for 2 years to get a house and cannot get approved for a loan due to lack of credit history. Lenders want to see that we have proved that we can make payments and I have basically nothing to show that. Paying cash for a house isn't an option so we have to rely on a mortgage.

    Save up 20% and look around for a place that does manual underwriting. Churchill Mortgage is one lender I know of that does not base their loans purely off of credit history.
    I though this was just and old fashioned practice that nobody did anymore but I looked it up just now and sure enough it is still going.

    I almost have to laugh at this. Realistically, how many people living paycheck to paycheck can save up 20% to buy a house? Inflation makes that nearly impossible for many people in this country. In the 50's and 60's when the cost of living was different, yes.

    Well, learn how to stop living paycheck to paycheck would be my first priority rather than figuring out how to buy a house.
  • rml_16
    rml_16 Posts: 16,414 Member
    Realistically, how many people living paycheck to paycheck can save up 20% to buy a house? Inflation makes that nearly impossible for many people in this country. In the 50's and 60's when the cost of living was different, yes.

    And this is the attitude that got us into the terrible economy we're in, the one that inflated the housing market and then burst the bubble.

    If money is THAT tight, you have no business buying a house. How can you afford repairs when something breaks? What happens if there's a job loss or pay cut? No one under those circumstances should be buying houses and no lender should be giving those people money for one.

Categories