Modifying Homeowner Criteria

[MROSE0910 (Michaela Gladden)]

The escalating difficulty of homeownership for new buyers has led to a surge in rental agreements, resulting in increased debt for many Americans. This debt burden particularly affects those paying high rent for small apartments, often around $1,000’s per month. To address this issue, we propose a two-pronged solution. Firstly, we suggest increasing the production of houses for sale rather than for rent, thereby increasing the supply of new homes and driving down prices through market competition. Secondly, we recommend a shift in banks’ assessment of buyers’ financial capabilities. Instead of solely relying on traditional credit scores, banks should consider rental history as a reliable indicator of an individual’s ability to afford a mortgage. By evaluating rental payments and demonstrating a consistent track record of meeting rental obligations, prospective buyers can enhance their chances of securing a home loan.