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Why is life setup that you have to borrow a loan to actually buy a house?

My grandma had told me that when she bought her first house it was a few thousand dollars and my gramps could afford it straight up. So why is buying a house so unattainable in America these days? Yet statistics show there are more foreclosed homes than there are homeless people in America. The reality is probably 98% of americans cant actually afford a house without taking out a loan to do it. Thats ridiculous that this is how life is.

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