Why Banks Do Not Lend to Build Small Homes
Forget about approaching a bank for a mortgage to build a small home. The banks are not interested in how little space you need, but in how much money it can make, pushing you into a larger home.
Remember all those bank bail outs? Did you know that the banks did not use the money, to help home owners prevent losing their homes in the recession? And the banks did not have to use the money to save American homes there was no requirement as to what it could be used for or necessity to prove the use. Quote President Obama, "We thought the banks would use the bail outs for the right reasons and use the money to assist home owners."
As many people have lost their homes through the bail out, the banks actually used the bail outs to buy up homes being lost to foreclosure and purchase homes lost.
People like myself, wanting to own my home, desiring a mortgage free life, do not want a long term mortgage. Looking to build small, I began looking into pole barns, large sheds, or building a home the size of a two car garage.
Sub-divisions sprouted up in the 1950's and 1960's. Families began to shrink. Homes though, began to grow in the number of rooms, but not in square footage. The standard of living began out growing the median income. A family living on one paycheck has declined over the years, as mothers began working full time and more women began full careers. The 1960's may have brought on the sexual revolution, but it also brought debt, and divorce. Families began really using credit to purchase items rather than saving to purchase in the past.
America had become a society of "Hurry up I want it now'' rather than working upward. Mortgages for homes were increased, sometimes rolling over old mortgages and exaggerated increases in the cost of the average home.
Some homes today, because of a greedy banking system, are purchased, at nearly the same dollar amount, as their original owners had financed. Though paid on for years, homes are decreasing in value. A home in a cookie cutter neighbor hood near my own, originally sold for $ 25,000 in 1960. The same home, was refinanced and sold for $ 48,000 in 1990. It is on the market now for $ 95,000. The home has been updated by the various owners, but never totally paid off. Today it sits vacant, as thousands of other homes across our nation. That is the way the banks like it. The banks, like to keep their hand in peoples pockets. Driving the mortgages up, the cost up and making more money for their operators.
Forget about approaching a bank for a mortgage to build a small home. The banks are not interested in how little space you need, but in how much money it can make, pushing you into a larger home.
Remember all those bank bail outs? Did you know that the banks did not use the money, to help home owners prevent losing their homes in the recession? And the banks did not have to use the money to save American homes there was no requirement as to what it could be used for or necessity to prove the use. Quote President Obama, "We thought the banks would use the bail outs for the right reasons and use the money to assist home owners."
As many people have lost their homes through the bail out, the banks actually used the bail outs to buy up homes being lost to foreclosure and purchase homes lost.
People like myself, wanting to own my home, desiring a mortgage free life, do not want a long term mortgage. Looking to build small, I began looking into pole barns, large sheds, or building a home the size of a two car garage.
Sub-divisions sprouted up in the 1950's and 1960's. Families began to shrink. Homes though, began to grow in the number of rooms, but not in square footage. The standard of living began out growing the median income. A family living on one paycheck has declined over the years, as mothers began working full time and more women began full careers. The 1960's may have brought on the sexual revolution, but it also brought debt, and divorce. Families began really using credit to purchase items rather than saving to purchase in the past.
America had become a society of "Hurry up I want it now'' rather than working upward. Mortgages for homes were increased, sometimes rolling over old mortgages and exaggerated increases in the cost of the average home.
Some homes today, because of a greedy banking system, are purchased, at nearly the same dollar amount, as their original owners had financed. Though paid on for years, homes are decreasing in value. A home in a cookie cutter neighbor hood near my own, originally sold for $ 25,000 in 1960. The same home, was refinanced and sold for $ 48,000 in 1990. It is on the market now for $ 95,000. The home has been updated by the various owners, but never totally paid off. Today it sits vacant, as thousands of other homes across our nation. That is the way the banks like it. The banks, like to keep their hand in peoples pockets. Driving the mortgages up, the cost up and making more money for their operators.
Comments
Post a Comment