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I agree that buying is preferable to renting (and better for your finances). But you underestimate the difficulty of doing that if you are poor. There are man

I agree that buying is preferable to renting (and better for your finances). But you underestimate the difficulty of doing that if you are poor. There are many folks who do not have any family or friends who are well enough off to be able to part with the money for your down payment. And no, you cannot get a bank loan to cover the down. The down payment exists because the bank wants to be sure that you have some skin in the game. In fact, a big part of the process of getting a mortgage loan approved is the bank digging into your financial records to confirm that the down payment is really your money, not a loan (from a bank or even trusted family). If they are not convinced it's your money -- no loan for you!

waterheater 6y ago
I suspected a loan wouldn't work for the down payment, but I wasn't 100% sure. Thanks for clarifying. Oh, I know it's very difficult for poorer people to buy property. Are you familiar with land contracts (also called contract-for-deed)? In certain scenarios, they provide a path to ownership for poorer people, but they're also offered in a predatory manner. I'll add that a poorer person seeking to buy might consider moving out of a big city to a smaller town. Obviously, this approach isn't for everyone. However, if home ownership is that important, you can find nice homes for sub-$150k in many smaller towns. At that price, a 30-year mortgage is under <$1000 a month. Considering how much a two- or three-bedroom apartment may cost in a big city, financially, it works out.