I have no problem with micro-down payments, mini-interest rates, etc. Here’s the problem with the lender...
“The monthly payments on her debt amount to $1328. Her income is $2470, leaving her with just $285 a week to live on.”
That should be the only consideration when granting a loan. Can the recipient afford to make the payments?
She can if she has six kids from six different daddies all paying child support, and taxpayers paying WIC subsidies, and half of her kids classified with some kind of “disability” like ADD or high functioning autistic or some such BS.
Also, if she gets her unemployed sister qualified as a government daycare provider, her unemployed sister can get a government check for babysitting her kids in her new house. And then her unemployed sister can pay rent to live in her new house.
Then both her and her unemployed sister can get night jobs as strippers and make lots of cash off the books...plus even more cash off the books if they bring some of their favorite customers home once in awhile.
She should have more money than she knows what to do with.
Exactly. We did something similar back in 1993. My husband and I were both 23 and put down the minimum down payment. But...we bought a home within our means.