Herewith, a rant:
One of our employees, a young single mother pregnant with her third child, floored her supervisor the other day by mentioning she’d bought a house in Oakland.
“How,” he asked incredulously, “did you manage that when I know you take home only $1500/month? For example, how did you manage the 30% or more down payment that everybody’s requiring in these days of tight credit? I know you have no savings.”
“Oh, it’s easy,” says she. “When the bank found out what my expenses were, they said I qualified for only 4% down because my only expense each month is my $450 car payment and gas for the car. The rest of my paycheck can go to the mortgage.”
Leave aside the specter of this woman, like most of our employees at this wage level, driving very nice brand new cars while our managers and execs grit our teeth and economize with well-used vehicles. How is it her only expense each month is her car payment and gas?
Here’s how, as she explained:
Food stamp “debit card” takes care of all her and her kids’ food needs.
State-subsidized daycare for her two kids: $4/month.
Home insurance and property taxes rolled into the mortgage.
Presumably she’s choosing to drive while uninsured, or has REALLY cheap insurance she’s not told us about. (Do auto dealers sell insurance they roll into the car payment?)
Health care subsidized by us (her employer) — we deduct $40/month from her paycheck for a basic Kaiser plan that costs us several hundred for her part alone. She doesn’t include her kids on her employer plan, because:
Kaiser has free child health care services for the first year or so, and there are state child health care programs after that.
Not to mention the CalWorks, WIC and TANF programs, at least one of which she receives benefits from.
Oh, did I mention that she CHOSE to get pregnant three times as a single parent because a) she wanted kids, and b) it wouldn’t add to her expenses.

The sad thing is, if you look at it that way, she’s actually a better risk for a mortgage company than a lot of the wealthier folks who were being pitched mortgages just a few years ago.
UPDATE: I should add that I’ve seen a pic of the house, it’s a nice 900-square-foot bungalow, and in a decent part of Oakland, which isn’t saying much, but hey, she’s a homeowner!