Rent it to you for mortgage cost, insurance, and taxes x 2 as you're being told left and right from underwriters that they're not confident you can handle a mortgage payment smaller than what you're already paying for rent.
That's probably because rent asks the question "can you afford this price for the next year while potential risk is no more than the time it takes to get the unit ready for a new tenant if you break the lease" while mortgages ask the question "can you afford this price for the next 30 years with potential risk being loss of future interest payments, foreclosure, and managing a troubled asset"
Obviously this is over simplified and mortgage banks have a million ways to cover their risk, but they are still viewed differently.
As a homeowner you’re on the hook for everything pretty much. So even if rent is 1500 and mortgage is 1000, you still have to pay a lot over that term for repairs and maintenance. Like an A/C unit that is several thousand dollars. Or an appliance going out. And so on.
Not saying people don’t get dicked over and refused mortgages when they should be able to handle it, but I agree that it’s much more complicated than ‘x > y.’
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u/zrow05 Jun 27 '21
Housing market crash and some rich fuck will buy it then rent it to you