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The other piece is loan to value. So depending on how many other people the nursing student in the article had to buy out, her share could be as high as 50% of
by derekp7 8y ago
The other piece is loan to value. So depending on how many other people the nursing student in the article had to buy out, her share could be as high as 50% of the house (if it was split between 2 people). In that case, there is really no risk for the bank as they would more than recoup their losses in a foreclosure.
- onetimemanytime 8y agoOK, but did you read such mortgages grew by xx% and conventional mortgages went down last year? Not all of them were buying out their relatives. "Lenders issued $34 billion worth of these unconventional mortgages in the first three quarters of 2018, a 24% increase from the same period a year earlier....the growth is notable because it came as traditional home loans declined. Those originations fell 1.2% over the same period and were on track for a second down year in 2018."