<p>I think the owner/renter example had some typos or wasn’t well thought out, because there’s no “rent” for the renter, just a mortgage which doesn’t make sense, and also there’s no “mortgage” for the owner who presumably has some housing costs. I had the same question about it when it was originally posted but thought the original poster would come back to clarify.</p>
<p>Here’s another scenario although still not very realistic:</p>
<p>Owner of a cheap house with lots of credit card debt:
$1000 a month income
$300 goes to credit cards
$300 goes to mortgage payment
$400 net income</p>
<p>$1000 considered for FA</p>
<p>Renter of a cheap apartment with no credit card debt:
$1000 a month income
$300 goes to rent
$700 net income</p>
<p>$1000 considered for FA</p>