More parents loaning money for home mortgages

[jeffrey]

In 1991, Dan Driscoll of Towson, Md., and his wife, Theresa, wanted to buy a house, but the lowest mortgage rate they could find was 9%. Meanwhile, Driscoll's parents, who were retired, were earning 3% on their savings. At Driscoll's suggestion, his parents financed his $75,000 mortgage at a 6% rate...

http://www.usatoday.com/money/perfi/...ges/50662308/1

[bjl584]

This makes sense since banks have become stricter with their lending standards. Mom and Dad would probably be much more lenient with their lending practices than a bank.

[disneysteve]

Originally Posted by bjl584

This makes sense since banks have become stricter with their lending standards. Mom and Dad would probably be much more lenient with their lending practices than a bank.

Perhaps if 2 or 3 mortgage companies turn you down, you should take the hint that you may not be financially ready to buy a home quite yet.

Tighter lending standards are a good thing after the fiasco of recent years when anybody with a pulse was being given gobs of money far beyond their ability to repay it.

[bjl584]

Originally Posted by disneysteve

Perhaps if 2 or 3 mortgage companies turn you down, you should take the hint that you may not be financially ready to buy a home quite yet.

Tighter lending standards are a good thing after the fiasco of recent years when anybody with a pulse was being given gobs of money far beyond their ability to repay it.

You're preaching to the choir. I agree completely, but most people have no idea or concept of saving up for a house.