Apartments for Low Income

Questions and Answers

Your Questions About Low Income Apartments In Michigan

June 5, 2013

Sharon asks…

Do you think America will go into recession in a few years? What can we do to prepare for this situation?

Do you think there will be another Great Depression?
Our US dollar is already going down in value.

Administrator answers:

Yes, and there are a few states that are already in one. Michigan is one good example. Building an economy around a single industry proved to be disastrous; people have lost jobs and are losing their homes and can’t afford to pay their bills. The Fed’s rate cuts on prime have helped very little; they did it to SLOW inflation, but guess what? We are still suffering from it because although the prime rate has been slashed, if people are on the brink of default, a small cut is not going to do anything for them. It’s a wicked game the Reserve is playing to get people into more debt. But look around you: Countrywide had to get another bank to bail it out (BOA), and Bank of America will only purchase Countrywide on a contigency that the latter will not file Chapter 11. But that is probably what it will do. Citigroup had just report nearly $10B in loss for its fourth quarter. What this means is more job cuts in the next several months. More lenders are tightening up their guidelines because of the subprime disaster and this means that many people won’t be able to refinance to pay off debt or to even drop their payment. In addition to which, if a person tried to qualify for even a smaller home, they may not be able to if they had credit problems; people’s homes have been listed for sale for over a year.

The same can be said with foreign investment. You’ve got investments in hedge funds and real estate, but this simply means more foreign owned real estate. More jobs for Bangalore. Our jobs are shipped overseas and what is left are lower paying jobs that we are all fighting for.

True, there are tools in place to curb inflation and to bail out corporations, but what does this mean to the person who has lost their job?

My income has dropped by nearly 50 % over the past three years. I work in sales and it has been tough. I have never overspent and tried to live within my means, but I am seriously considering bankruptcy because I cannot afford to pay back my creditors and I cannot sell my house because it’s declined in value (I live in Michigan); moreover, when I tried to get an apartment, I got turned down by six apartment complexes. All these inquiries hurt my credit score and now I am screwed.

David asks…

How low of an income do you have to have to qualify for section 8 in the state of Michigan?

Administrator answers:

I don’t know how low the income has to be, but I know that you have to be making at least some money, but not enough to cover all basic needs. It would depend on the size of your family, too. The best way to find out is to visit your local FIA office or an apartment complex that you know is covered under Section 8. You may be able to find some answers at either location.

Carol asks…

is 25K to 50K annual income is good amount in usa ?

Michigan i am talking abt

Administrator answers:

That would be considered average. In 2007 the average AGI on federal tax returns was about $39,000. For Michigan that is a decent salary. Michigan is a lower cost of living state (meaning housing and other expenses cost less). I am single and make about 30k annually and I live pretty comfortably. 3br 2ba house and a new car even after child support. My cost of living is similar to Michigan. On the other hand I wouldn’t mind being on the higher end of that scale… More towards the 50k range but I cant say I am hurting for money.

So to answer your question. 25k for a single person could get you a nice 2 bead room apartment and a nice car and you should have no problem making your bills. If you make closer to 50k you should have no problem buying a nice house and be able to afford many other luxuries.

Laura asks…

Is now a good time to buy a house? My rent is going up to $1300. Are prices low enough?

Will prices go lower? I’ve lived in an apartment/ my family has for about 10+ years. We feel it is time to move out

Administrator answers:

Hi, I am certified mortgage planner.

I assist home buyers with the loan portion of the transaction. Here are my thoughts.
The markets certainly have not bottomed out in some areas, so a part of your answer is going to depend on where you are. If you are in Arizona, the market is still pretty hot. If you are in Michigan, you can find some pretty nice deals right now, even though Michigan has not bottomed yet.

Prices nationwide are pretty competitive, rates are still really nice. I bought my first house over 12 years ago and was thrilled to get a 7.5% back then. I honestly would think that wasn’t bad now on a fixed rate mortgage.

So now that you have decided to buy, ask yourself the following three questions:

what is my true capacity? How much can I afford to pay each month with my PITI payment (principal, interest, taxes and insurance). Take your net (bring home) subtract all your bills (including the lattes and eyebrow waxes) and then take away another 10% for incidentals and spending money. What is left is what you can really afford for PITI. The lender will base the capacity on gross income minus only the items that report on your credit report.

Credit – how does it look? Do you have crappy numbers, do you have solid tradelines (at least 2-3 ) or are you new to the credit field. Do you have any old foreclosures or bankruptcies?

Collateral – once you determine the first two, you can look at houses in your real price range.

Good luck! If you have any questions – please feel free to ask. Whatcaniaffford@yahoo.com

Steven asks…

my mother has less then a week to be put out of her apartment and needs somewhere to go.?

she collects ssi and has a very low income. anyone know how she can get help. she lives in michigan and would like to stay close to the ypsilanti area.

Administrator answers:

Call social services, maybe they can help her.

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