3 ms·
> the company will make a payment to a buyer’s student loans of as much as 3% of the purchase price, up to $13,000. How does this make economic sense? It remin
by AlexCoventry 9y ago
> the company will make a payment to a buyer’s student loans of as much as 3% of the purchase price, up to $13,000.
How does this make economic sense? It reminds me of the deals home sellers would make to prop up their numbers in '06/'07.
- tmnvix 9y agoAs a debtor, I would rather debt that can be discharged through bankruptcy, so there is incentive there to prefer this offer to that of another similar offer that doesn't include the debt transfer. In other words, there is benefit to both the borrower (a 'better' kind of debt) and lender (we sell something we might otherwise not).
- lukevdp 9y agoFor the building company it's a 3% discount wrapped up in marketing.
- ethbro 9y agoPresumably because it allows buyers who would not qualify for home loans based on cash flow (impeded by student loans) to be eligible. Or at least, that's my guess. I know home loan standards are pretty static, so I'd guess it's to allow indebted students to qualify.