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anyone can let us know about the financing options from Capital One that as mentioned earlier in the tread?
The Cap1 mortgage program is nice if you qualify. According to the information sheet I received, they offer 30- and 40-year terms with fixed rates and no points, and a $3000 grant towards closing costs. There is a maximum income threshold of $58,499, so if you are above that, they can't help you.
The Penn South Federal Credit Union, on the other hand, has no income limits, but their terms are not great; they only offer 5- and 10-year terms, and even with an excellent credit score, the best rate they could give me on a 10-year term was just over 5%. I also tried to get a mortgage from several traditional lenders (banks, Quicken loans), but none of them would make an offer due to Penn South's limited-equity status.
Thanks, Incog79. Did you get a 2 room studio or a 2.5?
2.5, thankfully. The 2-room units are OK for one person but would be really cramped for two. For those still on the waiting list, the good news is that most of the studios are 2.5.
We got our first letter last month, but were very low on the list. Did you get an apartment as #7?
Yes. At the time I was shocked that both of the units we saw were available, but given how far everyone has moved up the list, there must have been quite a few inactive, ineligible or no-longer-interested people ahead of us that have been removed.
Ok so now I need some input/advice! The same day that the list was updated, I received my new lease. I can sign for 1 year or 2, but I don't know how the list is going to move. Even though there was a significant jump when they updated, I tend to think that they took so long because they were winnowing the list to drop people who have not responded or are no longer interested. So maybe now the list might move at a slower pace? I don't know. Also, I am close to the end of the list. I guess I could simply flip a coin at this point.
I guess I can always talk to my landlord and reassign the lease or sublet when I get called for an apartment.
Did anyone on the wait list who has already gotten an apartment have to break a lease?
The Cap1 mortgage program is nice if you qualify. According to the information sheet I received, they offer 30- and 40-year terms with fixed rates and no points, and a $3000 grant towards closing costs. There is a maximum income threshold of $58,499, so if you are above that, they can't help you.
The Penn South Federal Credit Union, on the other hand, has no income limits, but their terms are not great; they only offer 5- and 10-year terms, and even with an excellent credit score, the best rate they could give me on a 10-year term was just over 5%. I also tried to get a mortgage from several traditional lenders (banks, Quicken loans), but none of them would make an offer due to Penn South's limited-equity status.
Thanks again. In an earlier post, Eduronyc mentioned that they look at debt to income ratio. What was your experience at the credit union? Did they give you a limit on debt to income ratio? ( I think the highest most banks want is 28-42%).
Thanks again. In an earlier post, Eduronyc mentioned that they look at debt to income ratio. What was your experience at the credit union? Did they give you a limit on debt to income ratio? ( I think the highest most banks want is 28-42%).
I had two meetings with the credit union. At the first one, I think the rep said it should be less than 40%, and at the second when I actually completed the application (a few weeks later, after I tried shopping around), they didn't mention it. I gave them copies of my tax returns and debt documents, so I don't know if they still did the calculation, or just glanced at my numbers and could tell I was within the range. My only debt that I don't pay in full each month is student loan debt (which is substantial) but it is still under 40%. It was unclear to me at first, but they only count actual debt, not monthly expenses such as rent, towards the ratio.
Ok so now I need some input/advice! The same day that the list was updated, I received my new lease. I can sign for 1 year or 2, but I don't know how the list is going to move. Even though there was a significant jump when they updated, I tend to think that they took so long because they were winnowing the list to drop people who have not responded or are no longer interested. So maybe now the list might move at a slower pace? I don't know. Also, I am close to the end of the list. I guess I could simply flip a coin at this point.
I guess I can always talk to my landlord and reassign the lease or sublet when I get called for an apartment.
Did anyone on the wait list who has already gotten an apartment have to break a lease?
Thanks!
I have to break mine. My landlord will only let me out of it once I find a replacement tenant, but the broker who originally showed it to me is helping with that. I have just enough savings to cover a month or two of the extra rent, but hopefully it doesn't come to that. It's far from ideal, of course, but well worth it in the long run.
Not knowing exactly where you are on the list now, it's hard to say what is best for you, but I probably wouldn't sign a 2-year lease. Have you been called in to see any apartments at Penn South? If not, I'd guess you are relatively safe with a 1-year extension. If yes, and you were within, say, the top 12 people to view the apartment(s), maybe you should ask your landlord if they will give you a shorter extension.
If you do have to break a lease early, it might be at the beginning of next summer, when it is easier to find new tenants. And if you do have to sign another extension a year from now, any increase in that second year (over what you would have paid if you sign a sign a 2-year lease now) is just the cost of doing business - (a) you're buying yourself the flexibility to move out earlier and (b) it's probably not much compared to what you'll save by living in Penn South.
I had two meetings with the credit union. At the first one, I think the rep said it should be less than 40%, and at the second when I actually completed the application (a few weeks later, after I tried shopping around), they didn't mention it. I gave them copies of my tax returns and debt documents, so I don't know if they still did the calculation, or just glanced at my numbers and could tell I was within the range. My only debt that I don't pay in full each month is student loan debt (which is substantial) but it is still under 40%. It was unclear to me at first, but they only count actual debt, not monthly expenses such as rent, towards the ratio.
Thanks, Incog79. So if you have 4 credit cards and a loan, then those are the only debts that count? I guess that makes sense since most people won't be paying the same amount for rent as they are for the maintenance and mortgage in their PS apartment (much lower). Also, from what I understand, the cable and utilities are much lower as well.
I have a few more questions if you don't mind.
Did they look at your gross or net monthly income?
How many years of tax returns did you have to provide?
What is the cost per room now? I think I read $26,500.00 somewhere.
Should we have about an extra 5k for closing costs?
I have to break mine. My landlord will only let me out of it once I find a replacement tenant, but the broker who originally showed it to me is helping with that. I have just enough savings to cover a month or two of the extra rent, but hopefully it doesn't come to that. It's far from ideal, of course, but well worth it in the long run.
Not knowing exactly where you are on the list now, it's hard to say what is best for you, but I probably wouldn't sign a 2-year lease. Have you been called in to see any apartments at Penn South? If not, I'd guess you are relatively safe with a 1-year extension. If yes, and you were within, say, the top 12 people to view the apartment(s), maybe you should ask your landlord if they will give you a shorter extension.
If you do have to break a lease early, it might be at the beginning of next summer, when it is easier to find new tenants. And if you do have to sign another extension a year from now, any increase in that second year (over what you would have paid if you sign a sign a 2-year lease now) is just the cost of doing business - (a) you're buying yourself the flexibility to move out earlier and (b) it's probably not much compared to what you'll save by living in Penn South.
Good luck!
Thank again. I really appreciate your taking the time to respond when I know you are in the middle of moving! My neighbor has said that he would love to move to my apt. since it is in the back of the building and is very quiet. Living in the front on the street can be very noisy, so I may be able to do that when the time comes. I guess there are just so many variables that I should just let it go and see what happens when I get called. I've only got about 10 people behind me, so I have a ways to go.
You should also check out this site called leasebreak.com. It matches people who have to break their lease with people who just need an apt. for a specific amount of time, and it's free!
Thanks again!
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