Rent Vs. Buy Comparison - Follow Up To Responses; ADU Follow Up Too

    Yesterday, I blogged about Rent Vs. Buy Comparisons In The Age of Inflation, and I got a surprising amount of feedback, including the following:

    1. “I put 5% down, and my housing payment is $500 lower than my Mom’s rent.”
    2. “You are not accounting for maintenance costs!”
    3. “Do you guys do ITIN Loans?”
    4. “Unsubscribe” 😊

    5% Down Vs. Renting

    This comment was from an agent who put only 5% down for a home last year, as did her brother.

    And both of them have housing payments that are now $500 less than the rent their mother is paying for a comparable home.

    I loved these examples because my blog yesterday used a 20% down payment scenario for comparisons.

    But, in the age of inflation, even a 5% down scenario (with PMI) can make buyers far better off than renters.

    “Dude – What About Maintenance Costs?”

    A couple of agents also suggested that my analysis might not account for maintenance costs associated with owning a home.

    But, it actually did and that is one of the things I love about the Freddie Mac Rent Vs. Buy Comparison Tool; it requires you to input “estimated annual maintenance costs.”

    And – I assumed $5,000 per year.

    Do you do ITIN Loans?

    This has nothing to do with today’s blog 😊.

    But, my blog goes out to thousands of agents every day, and they often respond to my various blogs with unrelated loan questions.

    So, I am sharing this to encourage everyone to do so, as we like to help.

    And yes, we do offer “ITIN Loans” (loans for borrowers who do not have social security numbers) but they are basically glorified “hard money” with rates in the 9% range, much higher fees and a minimum of 20% down. Few ITIN borrowers qualify for them or even want them, so we don’t tout them.


    OK – I actually did not get that response, and rarely do.

    We do, however, get frequent requests to add people to our subscription list.

    So, if you know of anyone who would like to subscribe to our blog, please feel free to send them this link. 😊

    ADUs – Follow Up

    I blogged about Financing an ADU or an in-law unit a few weeks and got a lot of feedback too.

    One email was from the owner of California Pre-Cut Home, explaining to me that his clients spend anywhere from $80,000 to $250,000 for ADUs.

    He added that the cost for using a prefab company ranges from $150 to $200 per square foot, while using a general contractor and building from the “ground up” costs anywhere from $220 to $400 per square foot.

    And an agent also responded and recommended this book: In-Laws, Outlaws & Granny Flats – Your Guide To Turning One House Into Two Homes.

    Jay Voorhees
    Founder/Broker | JVM Lending
    (855) 855-4491 | DRE# 1197176, NMLS# 310167

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