They CAN afford the house.
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ACCORDING TO WHO Marion ?? YOU ??
Then YOU give them then loan…

NO assets at retirement age,, I’d say that they CAN’T afford to buy a house and would decline to be involved with this loan based on what you say, UNLESS they qualify..

Ever heard of a repair or an unexpected expense or a medical bill or car repair ??

The definition of THEY CAN AFFORD IT is:
They qualify for a loan, (so they POSSIBLY can afford it)!

FNMA will allow total debts up to 60% of gross monthly income.
When people bring home 75% of their gross, I don’t see how going to 60% is even prudent.

2 years ago, the loans existed.
It’s people thinking like you that contributed to the bubble and the mess.

There are retirement homes in Hemet and Sun City below $200,000 ..perhaps they can qualify to buy there.