That would require people to have three to four close friends that could tolerate their presence. That’s an exceedingly rare thing in the US as we’re mostly all intolerable cunts.
Also, it would require every friend to have savings to put down a down payment and also credit good enough to actually qualify. That’s on top of finding 3 or 4 friends you’re willing to live with.
4 people with 5k each can get almost 20% down on a 350k propery. Thats pretty decent except in the most expensive cities. 10k is harder but with 4 people would let you buy pretty much anywhere.
And with that many people on the loan a lot of banks would let you put less down. 15% has become really common even for single income buyers and special programs like CRA exist to let you go down to 10% even in coastal cities. My house was in the CRA program zone and it’s only 1 mile from the beaches and downtown. CRA has no limits on number of shared buyers.
Maybe first-time home buyer programs? But those are like 3% typically so it wouldn’t get you there and that’s before including closing costs, moving costs, and possible repairs.
Not to mention 3 or 4 ppl that can and will reliably make mortgage payments for 15 or more likely 30 years. Once someone drops out because of life events then they’ll want to be bought out by the next person which introduces a whole bunch of headaches. Having watched this exact thing play out, this will most likely turn into a bitter nightmare of endless paperwork and some ruined relationships.
That would require people to have three to four close friends that could tolerate their presence. That’s an exceedingly rare thing in the US as we’re mostly all intolerable cunts.
Also, it would require every friend to have savings to put down a down payment and also credit good enough to actually qualify. That’s on top of finding 3 or 4 friends you’re willing to live with.
4 people with 5k each can get almost 20% down on a 350k propery. Thats pretty decent except in the most expensive cities. 10k is harder but with 4 people would let you buy pretty much anywhere.
And with that many people on the loan a lot of banks would let you put less down. 15% has become really common even for single income buyers and special programs like CRA exist to let you go down to 10% even in coastal cities. My house was in the CRA program zone and it’s only 1 mile from the beaches and downtown. CRA has no limits on number of shared buyers.
350,000 x 0.20= 70,000
70,000 / 4 = 17,500
17,500 - 5000 = 12,500
Each person would need 17,500 for a 20% down payment, 12,500 more than the 5000 quote.
Do you think that 20% of $350k is about $20,000? I feel like I’m missing something important here .
Maybe first-time home buyer programs? But those are like 3% typically so it wouldn’t get you there and that’s before including closing costs, moving costs, and possible repairs.
Except they explicitly said “nearly 20%”. Which is blatantly false. Terrible at basic math. And this is why people will remain poor
Not to mention 3 or 4 ppl that can and will reliably make mortgage payments for 15 or more likely 30 years. Once someone drops out because of life events then they’ll want to be bought out by the next person which introduces a whole bunch of headaches. Having watched this exact thing play out, this will most likely turn into a bitter nightmare of endless paperwork and some ruined relationships.