Unable to Get a Mortgage, Millions of Americans Turn to Risky Lenders, But at What Cost?
USA Today, Apr. 20, 2022-Tiffany Cusaac-Smith, Romina Ruiz-Goiriena
At least 1 in 5 Americans have used alternative financing from 2009 to 2019, meaning many low-income buyers are purchasing homes at higher costs and less favorable terms. Typical alternative financing arrangements include land contracts, seller-financed mortgages, lease-purchase agreements and personal property loans. Experts worry many low-income Americans turned to risky financial agreements amid the pandemic-fueled rush to homeownership.