San Francisco Today

https://www.redfin.com/CA/San-Francisco/335-Berry-St-94158/unit-406/home/28939211

$405k 2 bedroom below market rate unit.  921 sq ft.

Max income is $94,750.

Assume 20% down and 30 year 4% mortgage.

housing burden.PNG

So they want to take a low income person and stick them with a 40% housing burden?  That’s the plan?  If taxes are filed as married, it drops to 36.6%.  Still way over the line.  What the fuck is the city thinking??

Also, the rules GUARANTEE only broke people can buy these:

Asset Test for BMR Buyers

MOHCD will also apply an asset test to all applicants. Assets include all savings, checking accounts, gifts and other sources of money (cash) other than retirement accounts. (If your retirement account is currently generating income — i.e. you are living off of your retirement — you must count this money as income on the BMR application.) Assets also include any money that will be used toward a down payment on a BMR unit. Ten percent (10%) of all assets over $60,000 will be added to the total household income. Retirement savings will be excluded from the asset test, but all retirement statements should be included in the application package.

You’re punished for having savings!  In this case, if you had $80k saved for the down payment, they’d count $2k toward your income, so the max income is only $92,750.

And that’s assuming you buy it with zero savings left, a very risky situation.  If we say that living expenses other than housing are $2000, a 6 month emergency fund would be $24k, dropping the max income down to $90k.  This bumps the housing burden up to 38%, disqualifying the buyer.  How the fuck is that supposed to work?  It’s like the city wants to make sure the buyer has no safety net.

A BMR household must take out a loan for a BMR unit and cannot pay for the entire unit in cash except in certain circumstances. The loan must equal at least 28% of the household’s monthly income. The amount of income the buyer household spends on housing expenses each month must not exceed 38% of the total monthly household income. And the total amount of household debt that is paid off each month (housing expenses plus all other household debt) must not exceed 43% of monthly household income.

Please review complete lending guidelines in the Procedures Manual.

lol lol!  I guess they are counting pre tax income?  It is depressing that their minimum spend is 28%.  And then you don’t even benefit from market increases!

A BMR unit will be resold at a restricted affordable price to a household that meets the first-time homebuyer and income qualifications for the program and for the particular unit.

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