Apartments for Low Income

Questions and Answers

Your Questions About Moderate Income Apartments

June 7, 2012

Donald asks…

Can an apartment legally withhold renter’s verification from a mortgage company?

I am buying a house and supposed to be closing on August 27 which is only two and a half weeks away. I am not sure what getting a normal mortgage requires, but I am going through a government program that assists low to moderate income households (I am a single female 2 years out of college), so it requires renters insurance from the previous 3 years. The only thing left before closing is the renter’s verification from my Senior Year of college apartment.
My mortgage company has called several times with no return calls and has mailed the request as well, with no response. If this doesn’t get handled in the next couple days it will throw the entire process off. The landlord company was a nightmare while I was living there, but I can’t believe it has followed me to this point! Does anyone know if this is an illegal activity? Does anyone have any suggestions on what I can do? I should mention the apt company is in Indiana and I am in Georgia now, so going there in person is a last resort
After seeing the first two answers, let me add THIS IS NOT RENTERS INSURANCE.. My mortgage people could care less if my stuff and apartment were insured when I lived there..

What it is is basically a report from my previous landlords verifying that I DID live there as well as that I paid my rent on time, wasn’t evicted, etc.
Also I will add that it cannot be in the form of my records or paperwork that I have (I still have my lease). It HAS to come from the Apartment Management.

Administrator answers:

If your mortgage program requires verification of rent that usually means you don’t have enough credit lines and have to use alternative forms of credit like rental history. There is no law that would compel a past or present landlord to answer your request, instead it is a favor. If you had a poor relationship with the landlord I don’t see any reason why he would extend any favors to you so you either need to find another form of credit or offer the landlord some cash for the information you seek.

Betty asks…

Will I be able to buy a condo in manhattan if I make about 100k a year?

I can live very frugally (about 20k-30k) for a few years and save enough money for a downpayment. I’ll be graduating from college/grad school in about 5 years and I want to buy a manhattan condo 2 years after that (about 7 years from now). I know some apartments in up and coming areas, such as Harlem and Washington Heights, are a lot cheaper than in the rest of the island (about 600k for a 2 bedroom apartment in these areas, compared to 2 million in the upper west side).
Will buying an apartment here be realistic? I’ve lived in Manhattan all my life, but my parents make only a moderate income and live in a rent controlled apartment, so I will not be able to count on them for financial support.

Administrator answers:

With that salary, you could afford a $250k mortgage in Manhattan. Doesn’t matter what the price is. Your salary determines your loan amount.

The issue has to do with debt ratios. A rule of thumb is that you can afford a mortgage that is 3 to 3-1/2 times your gross annual income (before taxes). In a high-priced area like Manhattan, maybe 2-1/2 times.

In general, lenders will let you spend between 28 to 33% of your gross monthly income on your mortgage payment (including property taxes and insurance).

Your total debt load (mortgage plus car payments and minimum payments on revolving balances) must not exceed about 38 to 43% of your gross monthly income.

These numbers are realistic general guidelines and your situation could be different.

Sandy asks…

can i get a apartment with bad credit?

ok so im in the state of nj, i got approved for moderate income for a two bedroom but they said i still have to pass the credit chk with the complex i would liketo move into my credit is bad and im working with a company disputing some things, ithis would be my first apartment for me and my son.i work for verizon for 5 yrs and make 32 an hour sot he money is there i can [ay the rent.just very scared that i will get turned down because of my credit, it was bad choices i made in my younger days but i have a 5 yr old son i will pay my rent before i pay something on my credit report.do i haev any chances of getting this apartment, i hope my good job will help in this situation

Administrator answers:

It depends on how bad you are talking about.

They have a specific score that everyone has to pass, no exceptions. You can ask them what their cut off is, as it sounds like you know your score. Also ask them if they take the lowest or the median one, most take the median, but not all.

Joseph asks…

Question about USDA loan?

“Eligibility: Applicants for direct loans from HCFP must have very low or low incomes. Very low income is defined as below 50 percent of the area median income (AMI); low income is between 50 and 80 percent of AMI; moderate income is 80 to 100 percent of AMI. Click here to review area income limits for this program. Families must be without adequate housing, but be able to afford the mortgage payments, including taxes and insurance, which are typically 24 percent of an applicant’s income. However, payment subsidy is available to applicants to enhance repayment ability. Applicants must be unable to obtain credit elsewhere, yet have reasonable credit histories.”

I am unsure about some of the criteria. I would meet the qualifications as far as being under the median area income and I have excellent credit. I also live in a somewhat rural area, so finding a home that qualifies based on that would not be difficult.

“Families must be without adequate housing”. Do you have to be homeless? What if I live in an apartment right now. What do they consider without adequate housing?

“Applicants must be unable to obtain credit elsewhere.” Do you have to actually apply for a mortgage and get denied? And prove you have been denied? I have talked to a lender within the past few months and did a preliminary “pre-qualification” for an FHA loan.

I also have about $20k in savings. Is that a problem with USDA loan?

I make O.K. money. I would be able to support the mortgage payments. I am a single mom, and for my area and family size it is below median income. The AMI in this area is about $106,100. The USDA loan was something I was just thinking about/looking into because with the 100% financing it would allow me to get a home sooner rather than later (I still need to save a bit more – about $10K – if I were to go the FHA route to feel like a have enough for down payment, closing costs, and still have a safety net for emergencies or repairs.)

Administrator answers:

To be without adequate housing doesn’t mean you need to be homeless, but merely that you do not own another house somewhere else.

To not be able to obtain credit elsewhere, mean that you don’t already have a home loan.

Your savings could actually be a problem if seeking 100% financing. I am not exactly sure of the loan rules on this but often loan programs like this think it is OK to have a nest egg, just not one that is liquid (cash). Thus tying this money up in an investment of some sort may be to your advantage. I think the rule is to not have more than twice your mortgage payment liquid at the time of closing (you can break it loose afterwards).

Of course you will have closing costs to deal with so you will need some of it even with 100% financing.

USDA is a great program, but you also may want to look up another program that goes hand in hand with FHA if your income is below median. This program is available in almost every state and offers money for down payment and closing costs. Check your state housing department website under home buyers. Sometimes this program is hard to find, so if you need help email me with your state. Also loan officers rarely mention it because it limits how much money they can make and requires more paper work.

Robert asks…

Is it reasonable for a foreign woman to expect me to do the NEAR IMPOSSIBLE, just to meet with her?

I have a job where I can only take off 1 week every 3 months.
I don’t know ANY Russian language.
I don’t know much about Ukraine or its transportation system.
I have only moderate income (I’m not rich).

I’m writing to a lady from a city named Kherson, I’m 47, she’s 37.
She knows no English, and has only traveled to Russia a few times.

She expects the WORLD out of me, expects me to arrive in her city in a limousine or better.

When I ask her if there is an international airport for my flight to land into, she tells me ‘NO’, I must travel 200 miles from Odessa to meet her in her city, and not to be late or she will not be impressed ! She demands only the best from men, and will not accept any less!

I suggest that I am traveling halfway around the world just to try to share a small face-to-face conversation with her, and that if I send her $1,000 to cover the cost of her transportation from Kherson to Odessa, will she be able to meet me if I rent an apartment in Odessa for my stay while I am there?

She tells me that she doesn’t like my plan, that I am not being a gentleman by expecting her to do so much hard work for the relationship, she says that her English is not good enough and she needs an interpreter, it will cost $50 per hour for the interpreter, maybe even $75/hr, and that i will need to somehow make my way to her city instead of her traveling to meet me.

So how does a man with no Russian speaking ability travel 200 miles through a country where practically no adults speak any English? And once I finally do get there, where do I go to find a place to stay for the week if nobody speaks English?

What is YOUR SUGGESTIONS?

Administrator answers:

Leave this woman as fast as possible. She is scam (she works together with interpreter and I’m sure there are other people in their team).
Please, do not go there. Honest woman will not behave this way.
It is hard, but do a strong step – delete all the contacts and go to the new life with woman who will respect and love you from all her heart.

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