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I'm both excited and terrified of my upcoming housing lottery interview, and I as I cross all my t's and dot my i's, I realized that I may have made a big mistake, or two. Was hoping someone on here with more experience can give me some guidance or advice.
1. When I applied for the building 9 months ago, my living situation was different. I applied with my boyfriend, but we have since split up. I applied under my name. His was added as my housemate.
But now it's just me who is applying for the apartment apartment. Will that be an issue when I go to the interview? Will I be disqualified because it's only me now? Any thoughts on that?
2. My income now is different from 9 months ago. Since we split up, I had to take on a second job. I now earn more than I did when I made my application, but I'm still within limit for the building. Basically I was making $29k and now I'm at about $34k.... The maximum household income is $44k.
I get nervous because they talk about how important it is to be accurate on the application, and how they have algorithms that look for inconsistencies that will disqualify applicants. I was worried that it would look suspicious.
3. Speaking of which, since I only earn $34k and the maximum is $44k, does that make my application less attractive than someone who earns $43k?
4. I've always saved as much money as I could for my retirement/hope of buying a home. Over the years I've managed to save approximately $20k, which I have in a savings account. Can that somehow make me over the limit in terms of assets? Is there an asset limit?
I know that income is important: you can't have too much or too little, but what about assets? Conversely, do you think having cash savings such as mine can potentially help my application? Like by showing that I am responsible with money, etc...
Also, I have excellent credit, my FICO score 797! I'm in my early 30's so my credit history is somewhat short, but I have no derogatory marks, no collections, judgements, liens, or bankruptcies. Wish I could get it over the 800 mark but it takes time, lol.
Any thoughts would be greatly appreciated. Thanks!
I understand that my interview is with the actual owner / developer of the building. So the owner has the final say in the application? At what point does the local city government/housing connect get involved?
Otherwise, it seems like it would be ripe for abuse.
After the owner says YES, then HUD and HPD have their say.
Do not worry about $20,000 in savings, only a very tiny amount (under 1%) will be added to your annual income as imputed interest income. So under $200. There usually IS a disqualifying asset limit but I think it is in the $100K-$200K range (don't hold my feet to the fire on the exact amount.)
My knowledge is based on helping a friend in 2015. Since that time, the guidelines have been changed a couple of times, and now I believe that changes in household composition are allowed. To be sure, google Marketing Guidelines HPD and download that PDF. It’s about 70 pages, but it is the official bible on these lotteries. If you search it for “household,” you’ll get the current information and lots else!
Here’s what it says in section 5-2 B:
CHANGES TO HOUSEHOLD COMPOSITION 1. Before eligibility appointments
a. Changes to household composition during the time between application submission and eligibility appointment are acceptable, provided that the change does not affect the applicant’s qualification as a household or their ability to meet the household size requirements for available units within the project. See Section 5-3: Qualification of a Household.
Good luck!
Last edited by macnyc2003; 11-17-2019 at 03:20 PM..
The asset cap is around $50,000. Savings in retirement accounts isn’t included.
Naah,
Quote:
The household asset limit for all homeownership units is equal to the HUD maximum income limit for a four (4)-person household at 175% of the Area Median Income (AMI). Effective April 24, 2019, the household asset limit for applicants to homeownership units is $186,725.
The household asset limit for all homeownership units is equal to the HUD maximum income limit for a four (4)-person household at 175% of the Area Median Income (AMI). Effective April 24, 2019, the household asset limit for applicants to homeownership units is $186,725.
This is for homeownership. I think the OP is talking about a rental.
I'm glad this issue came up because apparently the asset limits were revised in April of this year, and I had no idea that the asset limits now go according to the AMI bracket that the applicant falls into.
Applicants to Rental Units
The household asset limit for rental units is equal to the maximum income limit for a four (4)-person
household at the area median income (AMI) level for which the unit is designated.
Asset Limits for Rental Units
Effective April 24, 2019
I think you're fine where you stand as long as you do not pass the $44K threshold
Just makesure your income is within that bracket which includes your checking and savings
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