Small Dollar Mortgages Are Elusive
Lenders go out of their way to lend money to people who are already well-off, who objectively own as much property as they need, even if they do not buy the expensive real estate property that they are borrowing money to buy. Meanwhile, when you work constantly but your income falls slightly short of your last grocery bill of the month, it is virtually impossible to qualify for a credit card to charge the last few grocery items. If it is difficult for the 99 percent to get credit cards, car loans, and other financial products that enable them to make moderately sized purchases on credit. If home mortgages were readily available in modest amounts, then people who can’t afford mansions would more easily be able to afford to buy condominium units and townhouses. If you borrowed the smallest mortgage loan available to you, but you are struggling to keep up with payments on it, contact a Jupiter foreclosure defense lawyer.
Tiny Mortgage Loans Are Great When You Can Find Them
House prices have increased exponentially since the immediate aftermath of the 2008 housing market crash, but it is still possible to buy condominium units or small houses in some parts of Florida for less than $150,000. Good luck finding a mortgage loan for such a reasonable amount these days, though. A recent report by CNBC news shows that mortgage loan amounts have been getting bigger, and this increase is out of proportion to the rise in house prices. For example, between 2011 and 2021, the number of mortgage loans issued in amounts less than $70,000 decreased by 53 percent. Likewise, the number of mortgage loans valued between $70,000 and $150,000 was 21 percent lower in 2021 than it was in 2011. During the same time period, home mortgage loans with principal amounts greater than $150,000 increased by 240 percent.
Why are small dollar mortgages so hard to find? It is not because of a lack of demand for them. A disproportionate share of purchases of inexpensive housing units are by investors who pay for them in cash. In other words, you either have $150,000 in your bank account or you rent an apartment from someone who does. Mortgage lenders simply place obstacles before people who wish to borrow small dollar mortgage loans; applications for small mortgage loans get denied more frequently than applications for large mortgage loans. This is mostly because lenders make more money off of each large mortgage loan than they do off of each small mortgage loan. Small mortgage loans are available, but it takes some work to get your finances in order so that you can qualify for one.
Contact a South Florida Debt Lawyer About Applying for a Small Dollar Home Mortgage
A South Florida debt lawyer can help you improve your credit score and pay down your debts so that you can qualify for a mortgage loan that is just the right size. Contact Nowack & Olson, PLLC in Jupiter, Florida to discuss your case.