Rent vs Buy in 92078>Question Details

Amanda Joy B…, Home Owner in San Diego, CA

Why do so many renters not buy already?

Asked by Amanda Joy Barba, San Diego, CA Wed Mar 13, 2013

Is it because they are scared of being turned down for a mortgage? Is it because they haven't found a place to settle down? Is it because of the doom and gloom news stating how bad the economy is? What's your take on it?

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Christina Solorzano’s answer
Truthfully, the answer is simple. They can't qualify for a mortgage or don't have the funds necessary, or both. At the end of the day everyone has to pay for housing, regardless if your name is on the deed or not. We deal with so many clients who dream of owning a home but don't realize the choices they make only push that dream further and further away. Educating people is the first step, and then helping them understand the process...

Have a great weekend.

Christina Solorzano;
CEO & SR Credit & Mortgage Consultant of
Everlasting Credit
Ex-Mortgage Broker of more than 10 years
0 votes Thank Flag Link Sat May 4, 2013
Maybe they simply don't want the responsibility of owning a house....or..........they can't qualify/afford it ....or.......... they like to move around, and their future plans are uncertain................or, they live in a big city like NYC, where 1-2 bedroom apartments in Manhattan can sell for well over 1 million dollars!

You'd be surprised that many people live in NYC (and other expensive large cities) and will never own a home due to the's a big country out there - not everyone has the same needs or wants.

Pick a reason - there are many of them.
0 votes Thank Flag Link Sat May 4, 2013
Everyone is different. But here are some of the top reasons I hear:

1) Scared
2) Not enough time to find a home
3) What they want and can afford are very different (not willing to take steps)
4) Credit issues
5) Down payment and don't qualify for a low down loan (FHA, VA)

There are more - but these are the most common I hear.

David Rudd
Kindred Real Estate

CA DRE # 01402946
0 votes Thank Flag Link Sat May 4, 2013
Hello Amanda, It depends on what city your speaking of as some cities you can buy and pay less than rent and others rents as well as home prices are to expensive. I presume many haven't even came out of the woodwork yet and are still on the fence although rents as well as home prices are on the rise in many CA cities.

There are many that don't know they can buy yet with fico scores between 500-579 with 10% down or with a minimum 580 fico score may qualify for 3.5% down or as low as half percent down payment programs. There are many lenders out there that tell folks they can't qualify because they don't have a 640 fico score which is my specialty. There are also many that think they need 20% down, excellent credit and three open credit trade lines to be able to buy which is not true with my FHA banks.

Although FHA has mortgage insurance, you can always refinance conventional with no mortgage insurance in a short year of so when you have 20% equity and other conventional loan qualifications. You may qualify with 3% down conventional with a minimum 700 fico score or 5% down conventional NO Mortgage insurance (Lender paid MI) with a minimum 620 fico score.

I specialize in Under 640 Fico Score Loans and offer credit repair at no cost to raise fico scores to qualify for programs, rates and terms as necessary. There are many that have credit issues and some take a little credit repair. Everyone can qualify within a maximum 3 year timeframe as many are finding out that either foreclosed their homes or did a short sale and are buying again now.

You can buy with a minimum 580 fico score and only half percent down and minimum out of pocket expenses and pay less than rent in many cities. I find every excuse you can think of that people disqualify themselves without trying to pre-qualify OR have ran into a 640 fico score A paper lender that turned them down and dissapointed them. It only takes a few dozen questions to qualify any of your clients in minutes and get them out shopping for a home of their choice.

I work with many Agents/Brokers throughout CA to assist their clients with the many loan programs that I offer. I also have many of their clients in credit repair for a short time before I can issue a pre-approval letter. Here is a list of the documents needed for processing a loan approval, DU Approval or pre-approval letter within an hour to get out shopping and submitting offers.

Here are some loan program links that I offer to share with your clients so we can get them out shopping today. I provide many loan programs available throughout CA cities with Zero down, half percent down, Stated Income loans, FHA and conventional and many more to fit their mortgage needs.
Sheryl Arndt, Real Estate Broker - Sr. Loan Officer CA only
REO & Short Sale Specialist
Credit Repair At No Cost
ALL Loan Programs Available
20+ Years Experience
DRE# 01140252
NMLS# 297251
9am till 9pm 7 days
0 votes Thank Flag Link Wed Mar 13, 2013
Home purchase is not for everyone. Even though, borrowers can get a 30yr mortgage but if they have to put down another $5000, they simply don't have the cash. With many investors come into the market and flip a property into a turn key, there are just too many options at a still low rent rate (even though rent is on a small increase). It is more desirable to rent and be worry free of all the expenses which an owner takes on. And that's just one of the factors! So, we as Realtor just work around this to help our clients.
0 votes Thank Flag Link Wed Mar 13, 2013
It is because they do not have enough down payment, recent foreclosure/short sale, not enough home available in the market or they do not have guidance about different type of loan/ mortgage (such as FHA...)
0 votes Thank Flag Link Wed Mar 13, 2013
We've been marketing in high end apartment complexes in Palo Alto (rents $3000+ for 2 bedrooms) as one subset of the renter population. Aside from students and renters on short term job assignments, renters that won't buy seem to be hit by sticker shock when they start looking. I just checked the MLS, the lowest listed property in Palo Alto that is not in escrow is listed at $795k (includes single family homes and condos). The general sense I get is that although employment is way up in Silicon Valley, the high cost of rent, gas, etc. is making it hard for potential buyers to save for a down payment.
0 votes Thank Flag Link Wed Mar 13, 2013
I speak for myself that while I live in the most expensive city in the US to rent, I haven't bought yet because I don't know what my life will look like in the next five years! I predict that I will get married and have a family, but I am not ready to commit to something so permanent at this point in my life. Hope that sheds some light.

Great question!

Ali, Community manager
0 votes Thank Flag Link Wed Mar 13, 2013
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