In summary, no credit score loans are harder to document, harder to find lenders that will underwrite them, take longer to underwrite, may require a significant down payment, and require you to take precautions in the event the program is no longer available.
This summary of no-credit-score loans is nearly analogous to gifted kids... square pegs, round holes. We persist nonetheless.
It takes most people a long time to save $25k, and those savings are losing value every day.
Some may say the inflation rate (which causes savings to lose purchasing power) may still be less than interest paid if one borrowed the $25K. If it is difficult to set aside $25K, how much more difficult some may find it to repay principle of $25K plus interest. For some, the dilemma has become a matter of being able to choose only one: paying for college, home ownership, starting a family.
If you're buying something closer to the national median house
Current
national median home price, according to Zillow, is $179,200, and has not recovered since the dip in 2008. The graph showing the dip deep in home prices underscores that many who purchased their homes at higher 2006-2007-2008 prices may now be underwater on their mortgage loans (owing more money than what their home could most likely be sold for, given the current supply and demand in the residential real estate market).
This is a perfect example of how wealthy and not-wealthy parents teach their children different values around money which help sort their children into wealthy and not-wealthy adults in the future.
Yes, many are taught by varied and diverse life experiences, yet all may be following what they perceive as "The American Dream".
When it comes to kids & money, parents may wish to explain how an individual's decisions may impact and be impacted by the decisions of others. Here is a link to a website of information by Ray Dalio,
economic principles. Here is a link to a
post on another thread.
