Comments on: Below-Market-Rate Homes: Do You Qualify?

By: Auctionmaestra

Auctionmaestra — Sun, 20 Feb 2011 20:46:50 +0000

A person earning under $30,000 per year has no business applying for a mortgage of $200,000 or so. These units are unrealistically prices.

By: Christie

Christie — Tue, 20 Oct 2009 00:54:52 +0000

I am getting my Nursing degree right now and my only income I am living on is my Cash Aid. I am a single parent and in need of raising my son in a Nice enviroment. Do I Qualify for the BMR program?

By: Apartmenticipation » Weddingbee » The Wedding Blog

Apartmenticipation » Weddingbee » The Wedding Blog — Mon, 30 Mar 2009 12:28:23 +0000

[...] (source) [...]

By: David

David — Thu, 24 Apr 2008 21:18:45 +0000

And how many people live in a place long enough to pay off the loan? Especially entry-level homes as these are?

Plus just about everywhere has rent control, so you’re pretty well shielded from rent increases.

I’m just saying that with the profit potential on these admittedly limited, one really needs to look at the alternatives. With appreciation out of the way, the potential owner has a pretty clear rent vs. buy picture. If it doesn’t make sense, don’t do it; if it does, go ahead.

By: Red

Red — Thu, 24 Apr 2008 18:27:02 +0000

There is one other wealth building aspect to owning: paying down the mortgage. With rising income, one can pay more than the interest, and eventually have no mortgage payment at all. Amazing concept, eh? No stock market risk, no rent increases.
Used to be the way people built wealth and assured a reasonable retirement; maybe in the face of recession and flat (at best) home appreciation, paying off the mortgage will be the future.

By: susan.brady

susan.brady — Thu, 24 Apr 2008 16:37:12 +0000

Islander: There are incremental increases based on the # of people in your household. A single person could make a max of $29,350 to qualify for the very low income bracket. It steps up for 2 people, 3 people, and maxes at $46,350 for 4 people. Click on the “here” link to see exact increments.

David and Treeman: I am only stating fact, that the profit margin would be minimal. People assume that buying will yield them profit after a certain number of years. In this market, we see that this is not always true, and can be detrimental thinking. No more, no less.

By: Treeman

Treeman — Thu, 24 Apr 2008 16:18:49 +0000

David -

Agreed, it’s not an ideal situation, but we’re talking about a purchaser who has no business buying out here anyhow. So they are afforded that oppt’y, why should they get benefits that those of who don’t qualify for BMR (and still have no business buying in this area) get?

Agreed about the hedge against rent. That exactly how BMRs should work. You don’t get anything outlandish in the end, but your monthly payments were reduced vs. rent.

By: David

David — Thu, 24 Apr 2008 15:35:51 +0000

This is essentially a rent-inflation hedge. As such, a qualifier should really think about whether this is truly better than renting & investing the difference between rent and PITI payments.

It’s true that your personal housing shouldn’t really be an investment account, but that doesn’t mean that you shouldn’t look to maximize your returns and financial flexibility. Capping your reward (selling price) while paying more for the privilege (PITI vs. rent) seems like a losing bet to me.

By: Treeman

Treeman — Thu, 24 Apr 2008 15:22:49 +0000

As for the resale- why should such a purchase be able to be looked at as an investment. Purchasing a home is not an investment. That is what got us in this bubble mess to begin with.

And if someone is taking advantage of a BMR unit, why should they get to see above BMR resale?

By: islander

islander — Thu, 24 Apr 2008 15:15:45 +0000

So does a single person who makes more than $29,350 but less than $46,350 a year not qualify for BMR? Why the gap?