U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Retirement
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 10-13-2011, 11:45 AM
 
Location: Paradise Lost
291 posts, read 410,004 times
Reputation: 207

Advertisements

I'm beginning to think that I should have named this thread "Retirement and Subsidized Housing For People With Bad Credit Scores". My conversation with Wilson513 has woken me up to the fact that credit scores are as important to providers of subsidized housing as they are to any other landlord. I had naively assumed that with a guaranteed lifetime income from Social Security your previous financial dealings would be irrelvant. They are going to verify your income and see that you can easily pay the non-subsidized portion of the rent and accept you. But in my searches I've come across the phrase "eligibility and suitablility". I'm beginning to think that even though you may be financially eligible that suitablility, as determined by your credit history, may be an insurmountable obstacle. A poor credit history seems to be on par with a criminal record or prior evictions.

So, the question becomes: Anybody have any experience with obtaining subsidized housing despite a poor credit record? (That's more to the point.)
Reply With Quote Quick reply to this message

 
Old 10-13-2011, 12:12 PM
 
Location: Near a river
16,042 posts, read 18,985,208 times
Reputation: 15649
Quote:
Originally Posted by Curmudgeon View Post
One consideration prospective landlords might take note of is just why the income is so low and limited to just a small Social Security "award." Is it the result of a lifetime of bad planning, inadequate and only spopradic employment resulting in minimal participation in SS or is it the result of some catastrophic, life-changing event or disability. In the latter case, what other "reliefs" might be available. If I was the landlord I'd want to assess it as an indicator of not just ability but commitment to paying a fair share.
It's important to remember that even in our generation, many women opted to be mothers and homemakers and perhaps didn't get into the workforce till their kids were older--often not getting a first real job till their forties or even fifties. This is not a sexist comment by any means, just a reality. Many women, because of this, have long-interrupted job history/career, or are late starters and thus low SS income on their own. Add to that, many of these women are divorced either in earlier adulthood (single parents) or later, thus affecting their abilities with savings and investments, and even their credit history. I would hope that a landlord of a subsidized complex would take this into consideration.

As for men, there are many life circumstances including devastating divorces, health problems, and job changes and losses that could make them look like less than ideal candidates for housing.

I doubt that anyone retired and receiving SS is going to default on a rent, otherwise they would be out in the street.
Reply With Quote Quick reply to this message
 
Old 10-13-2011, 12:16 PM
 
Location: Near a river
16,042 posts, read 18,985,208 times
Reputation: 15649
Quote:
Originally Posted by SelflessGene View Post
I'm beginning to think that I should have named this thread "Retirement and Subsidized Housing For People With Bad Credit Scores". My conversation with Wilson513 has woken me up to the fact that credit scores are as important to providers of subsidized housing as they are to any other landlord. I had naively assumed that with a guaranteed lifetime income from Social Security your previous financial dealings would be irrelvant. They are going to verify your income and see that you can easily pay the non-subsidized portion of the rent and accept you. But in my searches I've come across the phrase "eligibility and suitablility". I'm beginning to think that even though you may be financially eligible that suitablility, as determined by your credit history, may be an insurmountable obstacle. A poor credit history seems to be on par with a criminal record or prior evictions.

So, the question becomes: Anybody have any experience with obtaining subsidized housing despite a poor credit record? (That's more to the point.)
I cannot answer your question directly, but here's what I would do in that situation: along with my application for housing I would attach a typed-up BRIEF narrative of circumstances acknowledging the poor credit record with some explanation of it along with assurances of ability to pay with SS income. I would include several references--those who could attest to the applicant's trustworthiness at this stage in life. This may not work, but at least it's not just a straight application that could get rejected.
Reply With Quote Quick reply to this message
 
Old 10-13-2011, 12:39 PM
 
Location: The Triad (NC)
28,506 posts, read 62,217,072 times
Reputation: 32199
Quote:
Originally Posted by SelflessGene View Post
A poor credit history seems to be on par with a criminal record or prior evictions.
Not on a par but there are parallel's.

Credit score is not about the income level of a person, it's about the level of responsibility that person applied to what income they had. The big hitters are paying what debts you incur and not taking on debt that could not be repaid.

some more reading to start you off: http://en.wikipedia.org/wiki/Credit_score
and go to the source for your actual number: http://www.myfico.com/


Quote:
Originally Posted by SelflessGene View Post
Anybody have any experience with obtaining [strike]subsidized[/strike] housing despite a poor credit record?
Not likely to happen with any LL who knows what they're doing.
Subsidized or otherwise.

hth


ps: argh! how do you do a strikethrough here?

Last edited by MrRational; 10-13-2011 at 01:22 PM..
Reply With Quote Quick reply to this message
 
Old 10-13-2011, 01:34 PM
 
10,139 posts, read 23,303,224 times
Reputation: 8290
Can I make this clearer? I'll be happy with a person who has a zero FICO if they have no, or very few adverse credit items, over a long credit history. A person who had a lot of recent credit is also a person who will get re-employed and lose their HUD subsidy and have to move out. A stay at home greatgrandma who has never had a job in her life, never had a credit card or a mortgage, and gets $300 of SSI, food stamps, and a Veteran's pension of $150/mo from her long dead husband, is a great prospect. OK?
Reply With Quote Quick reply to this message
 
Old 10-13-2011, 01:46 PM
 
Location: State of Being
35,885 posts, read 67,186,293 times
Reputation: 22375
I thought it only takes a matter of six months to a year to significantly improve a credit score. As long as you pay things on time for the next six months to a year, shouldn't that take any credit score concerns out of the equation, so to speak?
Reply With Quote Quick reply to this message
 
Old 10-13-2011, 04:16 PM
 
Location: Paradise Lost
291 posts, read 410,004 times
Reputation: 207
Default If You're Goin' To The North Country Far

Quote:
Originally Posted by MrRational View Post
Not likely to happen with any LL who knows what they're doing. Subsidized or otherwise.
Well, guess what, I'm making it happen. I asked myself where are the management companies going to be desperate enough to waive the credit check as evidience of moral rectitude and simply use it to answer the relevant questions like have you ever skipped out on a lease. Well, let's start with Detroit. I find a great web site designed to repopulate Michigan that allows you to search on criteria like "city", "senior", "income-based" and so on and come up with dozens of listings. I want to go as urban as possible so I select this great-looking 20-story high-rise in the Detroit city center area. I call the management office and find out that, if accepted, I could move in immediately and they won't charge rent until my second social security payment comes in. After that I pay 30% of my income for rent. They cover all utilities accept electricity and internet access. As far as the credit check, they're only interested in real estate-related items. They're sending me the application forms today and hopefully within a month or two I'll be loading up a U-Haul truck and waving goodbye to Dumb****istan. Sure, Detroit's the most dangerous city in the country but here in Dixie the cops are as dangerous as any gangbanger so what's the difference?

So, it seems that anything is possible once you start thinking outside the "MrRational" box. (I'll humbly eat my digital words if this doesn't work.)

Srew the "big hitters". (That I won't take back.)

Thanks for the links.
Reply With Quote Quick reply to this message
 
Old 10-13-2011, 04:35 PM
 
Location: Paradise Lost
291 posts, read 410,004 times
Reputation: 207
Default Are We Driving This Poor Guy Nuts?

Quote:
Originally Posted by Wilson513 View Post
Can I make this clearer? I'll be happy with a person who has a zero FICO if they have no, or very few adverse credit items, over a long credit history. A person who had a lot of recent credit is also a person who will get re-employed and lose their HUD subsidy and have to move out. A stay at home greatgrandma who has never had a job in her life, never had a credit card or a mortgage, and gets $300 of SSI, food stamps, and a Veteran's pension of $150/mo from her long dead husband, is a great prospect. OK?
I'm not sure who this is addressed to but I've understood what you've been saying from the start and am extremely grateful for your input. In the "You Are Your Credit Score" rant I was using that term in a very general sense to include formulas such as the one you use. Maybe I should have said, "You Are Your Credit History".

Anyway, I'm just not what you would consider an ideal candidate. (Especially the "greatgrandma" part.) So us less-than-ideal types have to find work-arounds like going to places everyone else is leaving and where money talks a little louder than it does in more advantaged settings.

Last edited by SelflessGene; 10-13-2011 at 05:04 PM..
Reply With Quote Quick reply to this message
 
Old 10-13-2011, 04:52 PM
 
Location: Paradise Lost
291 posts, read 410,004 times
Reputation: 207
Default NCD - Too Sensitive to Rejection

Quote:
Originally Posted by newenglandgirl View Post
I cannot answer your question directly, but here's what I would do in that situation: along with my application for housing I would attach a typed-up BRIEF narrative of circumstances acknowledging the poor credit record with some explanation of it along with assurances of ability to pay with SS income. I would include several references--those who could attest to the applicant's trustworthiness at this stage in life. This may not work, but at least it's not just a straight application that could get rejected.
Good advice but I hate to have to explain myself to anyone. It would just take too long. My approach to these kind of problems is usually along more actionable lines as I've described to MrRational above.

Nice to hear from you again, newenglandgirl. Still trying to help out fools in trouble I see.

(Can't message but I can still edit.) I've been out of work so long I'm unemployable anyway. Might as well say I'm retired and forget ever working again. Don't need a symphony but I hope they still have a library.

Last edited by SelflessGene; 10-13-2011 at 05:20 PM..
Reply With Quote Quick reply to this message
 
Old 10-13-2011, 05:35 PM
 
5,090 posts, read 13,552,001 times
Reputation: 6928
I am very sorry you have a bad credit score. I never really paid attention to a credit score, as I thought it made no difference in my life. I always paid my bills, on time. Never had any adverse action. Never wrote a bad check. Borrowed money only for my house, cars and some for college and paid everything on time. I never paid interest on a credit card. I just lived my life simply and reasonably. Then I get suddenly ill, lose my job and have to go on Social Security Disability to get health insurance. I paid off what was left of my mortgage and my car loan and now live debt free. I just hunkered down and lived even more simpley and reduced my needs, wants and desires.

So, I very surprised when I checked my currrent score is 822. That is extremely high and I have a hard time believing it. I have found out that my auto insurance is reduced because of that low score--it defines for them a less risking driver. I can get all types of loans. I get services done, up front, without prepayment. I have even got items sent to me that I purchased without a credit card, with a bill coming later. Now, you are telling me that I will get preferential consideration when I need subsidized housing. That never occurred to me, as I have not rented in over 30 years. Unfortunately, I have been considering moving to subsidized senior housing because of further health problems and the efforts to maintain a house. That is why I have been exploring that option. So, credit scores do matter.

Livecontent
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Retirement
Similar Threads
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2019, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top