Certain individuals should not buy homes and are better off renting. This includes those planning to move within five years, lacking steady income, or unable to afford mortgage payments. High credit-card debt and poor credit scores can also make homeownership unwise. Patrick Fultz and Laurel Swartz pursued homeownership despite significant financial issues, including poor credit scores and a lack of savings. They ultimately chose a loan with a negative amortization option, which exacerbates debt and complicates financial stability.
"You basically had to be Scot free, no massive credit debt, which we had, and to have money in the bank, which we didn't."
"Turns out, their first loan had a 'negative-amortization' option. This allows (but does not force) a borrower the option to pay less than the full monthly mortgage loan payment."
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