Millions of Americans are resorting to risky ways to buy an affordable home

Five years ago, Donald Strayer thought he’d bought a dream home for his extended family. It was on a pretty spot in Ohio’s Appalachian mountain foothills, with room for him and his wife, his daughter’s family, plus their horses and goats. And he could actually afford it.

Strayer had been turned down for a bank loan because of bad credit — he says it’s because of hospital bills years ago. The 58-year-old former forklift driver has a chronic lung disease and lives off disability. Instead of a regular mortgage, he signed what’s known as a land contract directly with the seller.

The price was $39,900. For a down payment he sold his childhood home, which he inherited when his dad died, “the only thing I had in the whole world.”