Will it, though? The thing is, the banks want to make loans. The whole 2008 thing happened because a lot of people who never should have gotten loans did. Do you really think in five years, they are going to blame anyone for getting a little behind on the rent in the middle of Covid?
Will it, though? The thing is, the banks want to make loans. The whole 2008 thing happened because a lot of people who never should have gotten loans did. Do you really think in five years, they are going to blame anyone for getting a little behind on the rent in the middle of Covid?
In 2008, in addition to people who never should have qualified for a home loan, the market pricing index was also way overinflated, so the valuation of homes was way over what they should have been.
Case in point, in 2001, here in Southern California, I bought a 4 bedroom 3 bath home with a pool, that needed some cosmetic work, as an investment property for $197,000, and by 2004, it was "worth" over $700,000. I still own the property, and have had tenants in it for years and it has still not climbed back to what it was valued at in 2004.
Obviously, that was a value that was overinflated, so in addition to loans being granted to people who otherwise would not have qualified, properties were overpriced which prompted a market correction.
In the case of the person in this thread, stiffing his landlord, when he attempts to purchase a home, the question of how he obtained the down payment will arise, and when it is seen that he didn't pay his rent, yet has the monetary resources for 10 to 20% down, that will be a red flag to any lending institution.
I truly do not feel that will work in his favor as a potential buyer.