Question


Daniel O

If you can buy as many houses as you want based on your finances, why are there no limits based on your debt?

Or are there? If a bank is willing to give money to anyone with good credit and strong yearly finances, that still does not govern their debt. I am asking because I am researching what makes this industry tick and I want to see all the flaws. The most applicable flaw that I can find so far is the shifty mortgage practices of sub-prime lenders and the incompetence of some multiple property owners. I repeat, some, not all! A bunch of disgruntled and nasty replies are not what Im looking for, please. So can someone please correct me and tell me otherwise or else your telling me there is a solution to the problem that is the mortgage crisis, and it begins with the irresponsibility of bankers and multiple property owners.

1 month ago - 4 answers

Best Answer

Chosen by Asker

your debts will always enter into the calculation as well as any real estate you already own that you have mortgage payments on - where did yo get your info? "buying as many houses as you want based on your finances"? - "finances" include income, credit score and existing debt income alone is (and always HAS been) a meaningless number (by itself) when it comes to qualifying for a mortgage

by Doctor Deth

1 month ago

Asker's Rating: 

Other Answers

"No limits based on your debt"? What does that mean? Your "finances", as you put it, determines the limits on your debt.

by jlf- 1 month ago

your question is unclear. One's debt level is a key factor in obtaining a loan. One of the ratios considered is debt to income ratio. the more income you have the more debt a lender will allow you to have.

by David Z- 1 month ago

The mortgage crisis is not the irresponsibility of multiple property owners. Everyone who I know who has defaulted on their property has defaulted on their single home, with the exception of one person who defaulted on both houses she owned. The root of the problem is that people got into the biggest financial transaction of their lives without fully understanding much about interest rates and how to budget for their new mortgage payment. Personal responsibility is lacking, big time.

by HEATHER- 4 weeks ago