Why do banks do this?

Banks do not do this anymore
Reminder to please support small banks as opposed to the giant jew banks

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Mexicans are huge with FHA loans.

Well the idea is that you pay it back when you sell the property.

If you dont pay they get the house + the down payment + any payments you did. How is that a bad deal?

The idea is that you fail to make a payment and the bank takes the house, the principle, and the fucking interest and you get fuck all, goy.

Actual mortgage industry fag here.

Unless you've got a best efforts commitment to an investor (or you keep servicing rights in house) a lender always underwrites a mortgage to Fannie, Freddie, or Ginnie. Not underwriting according to their standards makes the loan unsaleable, which is bad news unless your warehouse line is gigantic. After 08, UW standards went way up due to government regulation and it's much more strict.

No lender wants an unsaleable loan, and unless you're doing some goofy non prime program, you won't be able to get a loan with shit credit or a high DTI program.

Tbh this meme opinion that banks will lend to anyone is not as true now as it was in the past.

Go save up 500k and live renting from a jew building no equity instead then retard

>implying nothing beats equity in an asset class where annual 10% increase is considered a literal moon mission

(((small banks)))

tell that to Fannie Mae

Yes. Money from the community for the community.
Chase, b of a, alliance. They are the jews

>(((Money from the community)))
nice try

Are you dumb? Where do you think the money comes from?

>(((money)))
you should know kike

The whole system is literally a ponzi scheme, it's incredible how few people are aware of this or even care.

I'd like to buy a Bugatti Chiron, but guess what I can't afford it. I don't go take out a loan because I can't afford it.

Just imagine for a minute that people couldn't take out loans to buy homes, some 95% of the population would be sleeping on the street. Imagine if that reality of not being able to afford a home was a problem society couldn't just kick down the road to next generation. Prices of homes would come down real fucking quick and wages would go up. Wages and prices of goods are not keeping pace with reality. By taking out a mortgage, people are subsidizing profits for big companies to overcharge on the price of goods - any good, big or small. Think about it for a minute.

Internationalists are skimming off the top of the US economy and its productivity and leaving the people with less and less each year.

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that is to say - your debt is not just for the house your buying. it's for your total cost of living.

Then literally nobody would work in construction to build homes

you're right and the biggest problem is that the average normies doesn't think about such things even for a minute during his wagecuck life.

It wasn't always like this, you realize that, right?

A house used to be about a year's wages. The quality of materials and workmanship has gone down, yet housing prices are now many times that.

Materials are expensive as fuck along with the land itself amd labor. Margins construction companies operate under arent huge

t. Banker

Yes i made that quite obvious. I have seen cost breakdowns for loads of residential homes as well as financials for the companies that build them

>materials
>mostly cardboard shitboxes made out of prefabricated eements
>expensive

Maybe if youre buying a $100k townhome

You even have to take out a mortgage for a mobile home these days that's how bad it's getting.

I've seen car loans now for 8, 9, 10, 12 year terms

not just USA, and this is not a bubble. this is a squeeze. land is running out, unless you want to live in the middle of the desert.

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and that's why the kikes make sure to keep the inflation going stronger and stronger, to prevent filthy goyimg for even thinking about saving and buying things they really need. An average goy needs to take a mortgage and once he realizes that he's like
>shit, may as well go for a big one, I'm getting into this shit anyway

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absurd. Boomers could buy a car with a summer jobs wage. Now we need to work almost a decade for one.

Because if the housing market crashes and they're left with worthless properties the government will bail them out printing a few hundred billion..

Either way they're still giving 1% or 0% down mortgages in many places again.

I know, have you actually spoken with old people about this? Ask them and they'll tell you. These revisionist kikes keep trying to trick people into thinking they're just wearing rose-tinted glasses.

I worked with a boomer and he would buy a new car every year. A truck would literally take him 2-3 months to pay off. You're completely right - a summer's job. My grandpa worked part time, had a house, and was going to college when he was like 21-22.

Pretty soon the state is going to confiscate all of this land. Someone has to pay for the increasing brown population. It's called "seizing the means"

you could buy a civic for like 2-4k on a summer wage cuck

>Fannie, Freddie, or Ginnie.
Fucking hate this cutesy bullshit.

No one had a decent point against this kek

if you are an american, there is plenty of land. what are you bitching about. if you can't afford to live in jew york or san fran, get out of the kitchen sounds like you can't compete

okay, globalist

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>Just imagine for a minute that people couldn't take out loans to buy homes, some 95% of the population would be sleeping on the street

hahah holy shit everyone would just rent, retard.

NOBODY needs to own a home.

Home ownership itself is the scam.

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Because those cars were steel death traps that a literal retard could assemble. Modern vehicles have more and more features. You don't have to pay for them. Buy used or base model.

Imagine being so blatantly Jewish that you can't even comprehend the idea of owning your own land. The reason houses are so expensive is because:
>A: we allow rich fucks from all over the third world to buy up our real estate and drive prices through the roof
>B: our wages are artificially suppressed by flooding our countries with immigrants, brainwashing women into becoming wage slaves instead of mothers, and outsourcing manufacturing to third world slaves
>C: they're built to be way too fucking excessive

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you don't work in construction yourself so why are you larping on the internet? the cost of labor and materials in building your average $400k home is about $20k to $40k

The cost of the house is immaterial. It's the land you're paying for that carries the greatly inflated price.

Big deal, you could foreseeably pay it off in 8-10 years if you wanted to, or the regular 20-30 if you wanted otherwise

This
People think that the banking industry is still this way, but now banks make fuckin sure you will be good on a loan

Money comes from loans, brainlet. The money is created as a deposit in your account when you take a loan.

You aren't too bright. Loans are important to the economy. Matter of fact they increase the economy. They aren't as you you basically say as a negative that always increases the cost of goods. Housing prices crashed and people got loans to buy them cheap. People also got loans to buy them when they were expensive. Loans are a tool, not a means to value an investment.

Your argument seems based on the current thought that raising tuition is a consequence of the increasing number of student loans. This disregards that in reality there are just more students going to college than ever before. That causes the rise.

Economics: where the conclusions are rationalized after the fact and intellectual integrity doesn't matter.

Have you been living under a rock. Sub prime mortgages have been back for two years already.

They're called non prime mortgages now. Google it. Demand has been soaring and the federal mortgage agencies have lowered their requirements again.

Its all happening again. People have their heads in the sand because they think "this time will be different".

You are a fucking moron.

>Your argument seems based on the current thought that raising tuition is a consequence of the increasing number of student loans. This disregards that in reality there are just more students going to college than ever before. That causes the rise.
Nope. You sir are what is known as a useful idiot.

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Congratulations you paid 300k more than what you would have done without all this central bank 'help'

>there are just more students going to college than ever before. That causes the rise.

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Base models eh. Guess what, over 50% of the cost of a new car is electronics, this includes base models. We’re fucked.

Normies only think about one month or so in to the future
>Normie: wow, my mortgage repayment is now $10 less a month, thanks lower interest rates
> Us: Yeah, but the mortgage term is longer because house prices are higher DUE TO lower rates, so you have to pay an extra $400,000 over the life of the mortgage just for somewhere to live
>Normie: yeah, but its $10 less a month!

Not my terms. Its gay but it's faster than saying FHLMC

I'm riding the tiger family. Gotta have enough money to save so that one day I can fuck off to my own property and write nationalist propaganda and make brandy.

Because debt is money. Banks can create millions out of that 600k due to fractional reserve banking.

youtube.com/watch?v=rcJHk77bUGo

You're argument got shit on so fast I'm giggling

>bank earns interest
>If you go bankrupt they repossess the house and make most if not more their money back

hyperinflation by the end of the decade.

Because as long as they make one cent profit the banks are coming out on top.

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>living as a service

Because we are NOT in a housing bubble.

retard

Mort-gage
Morte meaning death. Aka death loan.
You're not supposed to pay it off, it's supposed to be a lifetime debt.

Property tax and maintenance fees eat into any return from housing.

back in 07 you could buy a 500k house with no income at all

Why did anyone let this happen, how did it make any business sense to do this.

until bitcoin, which is an opt out button long term, unless they can execute a 51% attack on it. the media attacks and political attacks against bitcoin won't change the facts you've laid out. the only way to stop it from gaining value long term in nominal terms in the current system is to make it non-operational via a 51% attack

Because they know that if the economy crashes, they will get fat bank bailouts. Its crony capitalism, not free market.

because they repackaged the mortgages and sold them to european banks. Thus a worldwide economic crash. Everybody was making money though, because debt = money.

>our wages are artificially suppressed by flooding our countries with immigrants, brainwashing women into becoming wage slaves instead of mothers
this. after the jewish trick known as "feminism" took off women flooded the employment market and, as you can imagine, the sudden doubling of workforce absolutely ruined it for the common man. the jews were happy of course because they got tons of cheap labor.
if only women weren't fucking stupid and didn't fall for feminism.

>how did it make any business sense to do this.

They knew they would get bailouts. Its the "too big to let it fall" logic. If the government let markets be free, that would not happen.

they repackaged and sold to fannie mae too, fannie mae still is holding over 3 trillion in "assets" eg loans with negative 3 billion equity. it's so fucking fake it's hard to even believe it exists. if the fundamentals mattered in the short term we would already be in mad max

lets say you have 20% saved for a down payment on a house in your area. do you buy now before prices continue to increase, or do you wait and save for another couple years to see if the market turns down? a-asking for a friend

dude, nobody can answer this type of question. you're appealing to someone who is somehow certain whatever way the market is heading up or down and that's impossible to know.

if you are going to live in the place for a foreseeable amount of time and able to ride out any volatility then buy. if you can't handle the volatility then keep waiting. but know this, anybody who tells you with confidence how the market is going to go one way or another is full of shit, nobody knows for certain, that's the market.

Wait for the next recession in a couple years. The market cycle is closing, my man.

depends on your country, region, and 10 other factors

That retard zoomer doesn't know how approvals work

He'll probably get approved for like 150k

It's obviously a ponzi system held together by endless borrowing
But they can always just borrow more and inflate the bubble further but postpone the inevitable crash
You could find yourself waiting another 20 years for the crash during which time you could earn more fiat ponzi bucks

I don't know what to do either fren

i ran some numbers on renting for 15 years vs. paying a mortgage for 15 years, and even if the value of your property goes down / remains stagnant, it still seems like a massive net gain. am i retarded?

i hope you're right. market has been red hot here in seattle.

did you calculate the opportunity cost of putting your capital towards a downpayment? include maintenance costs like strata fee, property tax, heating, repairs and maintenance?

not at all, i just ran some numbers to get a general idea. for instance: in 15 years of renting at $1k a month, I'd be -180k. if I spent 80k on a down payment on a 400k house with a 15 year fixed mortgage, i'd pay 103k in interest but have a 400k house and be + 294k (400k house value - 103k interest paid). am i on the right track, or completely ass backwards?

It will be different. This time they let the banks take the hit. And since 100k or something is secured for the normies, they will pay it out of the stock price.

>Imagine being so blatantly Jewish that you can't even comprehend the idea of owning your own land.

or maybe the state should be the only one capable of owning land
falkvinge.net/2017/03/01/a-simplified-taxless-state-a-proposal-part-1/

your math is wrong. mortgage payments calculate as interest and towards equity. 103k in 'interest' is probably around 63k in interest and 40k towards the principle of your property. to do a cost comparison you need to compare two scenarios. one where you rent for a specific term at a specific price and assuming the cost of rent increases while taking into account of your 80k downpayment as an investment into something else, say equities. assume a % of annual return on that downpayment.

second scenario you need to look at mortgage rates and terms. assume the cost of the mortgage per month minus the equity portion. that's your interest cost. add strata fee + heating + electricity + insurance +maintenance + property tax to that number. take that total monthly payment and see what the difference is between renting and owning.

you must also adjust for that fact that property values may go up or down during that time the same way your equities investments will. if rent is cheaper per month more then owning, you must also calculate how much money you would have made if you had invested that difference into equities to find the 'true cost'.

You have literally 0 experience with this shit while i look at it every other day
Money comes from deposits retard. Banks are so heavily regulated nowadays

I did not understand a single word of what you just said

Mortgage lending operates strangely. A lender will usually sell a loan to an investor (like Chase or Penny Mac) rather than keep a loan on it's books. It's a liability to wait 30 years for your money. The investor will usually then split up the loan into the servicing rights and the right to the amount. The investor will then sell those servicing rights to Fnma or Fhlmc or Gnma. Each of these agencies have underwriting standard for the loan, so an investor won't buy the loan from the lender unless it's UW to their standards (credit score, proof of income, property type and occupancy type,etc...).

Some investors service the loan themselves and thus are willing to take on stranger loans (jumbos, low credit score, etc..). These are usually high interest rates though (I've seen upwards of 8.5% for a non prime).

Does that explain it a bit better?