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Affordable Homes Requirements Scared Me

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Frequent Contributor

Affordable Homes Requirements Scared Me

The local Affordable Homes place offers the sams requirements for renting/buying, part which are as follows:

 

6 months of bank statements on every account, every possible asset to include retirement accounts, divorce decree, 3 years of taxes to include every page of federal and state taxes; along with a whole bunch of other stuff. I understand, I just have a few concerns that I want to inquire about for anyone with experience in this area. 

 

1. If my bank accounts have been overdrawn monthly would that affect my chances of being approved and do i have to include every bank account that i have do they really check each one if not listed, the one with my direct deposit is the one that is usually overdrawn while my credit union one is not.

 

2. I have transfered funds to my robinhood/tastyworks before, an investment app which are both currently at zero, however, how would that be viewed in this whole process.

 

3.Lastly it asks if I filed a k1 during taxes which i only filed 1099-misc for freelance work done on my llc, which is no longer making any money as of the last 3 months; can this be viewed as though i bring in extra income which i no longer do since i was let go from my freelance position since May.

 

They called this income verification and after passing the credit check, this part is stressing me out and not because of paystubs since I can supply those but because of all of my banking negative data to include short term investing habits.


July 2019 464-540
July/2019 Equifax-490 to 521 TransUnion-521 to 528 Experian-521 to 540
Current/2019 Equifax-555 (ck) TransUnion-556(ck) Experian-558
Mortgage Scores: Sept/2019 Equifax-Fico5 xxx TransUnion-Fico4 xxx Experian-FIco2 xxx
First Goal 580 by Oct/19 Second Goal 600 by Nov/19 Third Goal 620 by Dec/19 Goal Score:across the board 690+


8 REPLIES 8
Frequent Contributor

Re: Affordable Homes Requirements Scared Me

I need to submit my paperwork asap if any of the veterans can provide any insight or advice, much appreciated.


July 2019 464-540
July/2019 Equifax-490 to 521 TransUnion-521 to 528 Experian-521 to 540
Current/2019 Equifax-555 (ck) TransUnion-556(ck) Experian-558
Mortgage Scores: Sept/2019 Equifax-Fico5 xxx TransUnion-Fico4 xxx Experian-FIco2 xxx
First Goal 580 by Oct/19 Second Goal 600 by Nov/19 Third Goal 620 by Dec/19 Goal Score:across the board 690+


Message 2 of 9
Valued Contributor

Re: Affordable Homes Requirements Scared Me

You will need to write a letter of explanation to clearing explain and link the LLC to the 1099 employment that ended in May. You need to probably Close the LLC thru the State as no longer being active (speak to your Accountant), this will be a part of your Proof you no longer have this as an active income source.
As to EVERY bank stmt, don’t include Accts that aren’t active or in use during this period that have no $$ in them.
And yes the NSF situation if it’s numerous can torpedo your approval. Shows a inability to manage your finances and how can you possibly handle a higher housing pmt if you can’t mabage your current rent? That’s an UW judgement call on a case by case basis.
All the other required documents are fairly typical for “Special Housing” programs that are Income Based for 1st time or low income borrowers.
Good luck!
Message 3 of 9
Community Leader
Senior Contributor

Re: Affordable Homes Requirements Scared Me


@mynewcredit wrote:

The local Affordable Homes place offers the sams requirements for renting/buying, part which are as follows:

 

6 months of bank statements on every account, every possible asset to include retirement accounts, divorce decree, 3 years of taxes to include every page of federal and state taxes; along with a whole bunch of other stuff. I understand, I just have a few concerns that I want to inquire about for anyone with experience in this area. 

 

1. If my bank accounts have been overdrawn monthly would that affect my chances of being approved and do i have to include every bank account that i have do they really check each one if not listed, the one with my direct deposit is the one that is usually overdrawn while my credit union one is not.

 

2. I have transfered funds to my robinhood/tastyworks before, an investment app which are both currently at zero, however, how would that be viewed in this whole process.

 

3.Lastly it asks if I filed a k1 during taxes which i only filed 1099-misc for freelance work done on my llc, which is no longer making any money as of the last 3 months; can this be viewed as though i bring in extra income which i no longer do since i was let go from my freelance position since May.

 

They called this income verification and after passing the credit check, this part is stressing me out and not because of paystubs since I can supply those but because of all of my banking negative data to include short term investing habits.


Even though your chances may be slim, I would still apply. You never know. 

 

Yes, you have to submit all checking/ savings accounts, whether active or inactive. I had closed one of my checking accounts 3 months prior to applying and I still had to get a notarized Statement from the bank (on letterhead) that the account was closed and in good standing. I assumed they got the info from EWS or chexsystems. 

 

The NSFs are going to be a problem. They comb the bank statements with a fine-tooth comb looking for exactly that and deposits that are not payroll related. 

 

You have to prove the stated income thats required for the unit. It’s usually a range so maybe without the freelance work, you’re still in the range. 

 

Now I had to show my last 3 mos of paystubs prior to move in date.

 

All of this took place in 2015 in VA so things may have changed. 

 

GL2U

GOALS: Garden til APR 2020 and 800 Club

GIRL WILLPOWER ("No Thanks" to Apple $7.5K, 12.99% Approval)


JUN 2019: EX 788, TU 794, EQ 779
DEC 2018: EX 777, TU 783, EQ 799

|| AmX Cash Magnet $25K || NFCU CashRewards $20K || Macy's $20K || Discover IT $18.7K || NFCU CLOC $15K || NFCU Platinum $12.5K || AmX ED $11.5K || CitiCostco $7K || CitiDC $6.3K ||
Message 4 of 9
Frequent Contributor

Re: Affordable Homes Requirements Scared Me

Jville I don’t have an accountant, can’t afford one. I would not be pleased to close my llc that can be my only back to make money in the future if need be. Wishing there was a way around that. I will write a letter of explanation.


July 2019 464-540
July/2019 Equifax-490 to 521 TransUnion-521 to 528 Experian-521 to 540
Current/2019 Equifax-555 (ck) TransUnion-556(ck) Experian-558
Mortgage Scores: Sept/2019 Equifax-Fico5 xxx TransUnion-Fico4 xxx Experian-FIco2 xxx
First Goal 580 by Oct/19 Second Goal 600 by Nov/19 Third Goal 620 by Dec/19 Goal Score:across the board 690+


Message 5 of 9
Frequent Contributor

Re: Affordable Homes Requirements Scared Me

Thanks CreditInspired as well.

 

So to be clear Jville you said that; “As to EVERY bank stmt, don’t include Accts that aren’t active or in use during this period that have no $$ in them.”

 

They are asking for my bank account numbers, that part is normal? I feel,that they can go in whenever they wish past the application timeframe. Seems more invasive than just asking for 6 months statements as they are.  Can anyone confirm if my bank statements are in the negative or don’t have funds in them if I still need to prove those bank account numbers and statements?


“And yes the NSF situation if it’s numerous can torpedo your approval. Shows a inability to manage your finances and how can you possibly handle a higher housing pmt if you can’t mabage your current rent? That’s an UW judgement call on a case by case basis.
All the other required documents are fairly typical for “Special Housing” programs that are Income Based for 1st time or low income borrowers.”

 

CreditInspired you mentioned that NSF situation may harm approval, although, that is the reason why I am asking for an affordable house where I won’t have a higher payment than I do now as it will be 525$ less to make my finances more manageable, would it be okay to state that in the letter of explanation, and I have managed my current rent by having monthly NSF since i get paid every two weeks instead of every week and I am always playing catch up; Do you think it would help to include screenshots of my rent/water, etc being paid on time for the last 12 months?

 

I will submit the application tommorow morning sith supporting documents, just seeking clarification those points if I may. Thanks in advance


July 2019 464-540
July/2019 Equifax-490 to 521 TransUnion-521 to 528 Experian-521 to 540
Current/2019 Equifax-555 (ck) TransUnion-556(ck) Experian-558
Mortgage Scores: Sept/2019 Equifax-Fico5 xxx TransUnion-Fico4 xxx Experian-FIco2 xxx
First Goal 580 by Oct/19 Second Goal 600 by Nov/19 Third Goal 620 by Dec/19 Goal Score:across the board 690+


Message 6 of 9
Community Leader
Senior Contributor

Re: Affordable Homes Requirements Scared Me

Every situation, of course, is different and every state is different. I say go in prepared. Have the LOE at the ready in case questions are asked.

 

But there is one thing to keep in mind. There are so many people applying (new bldg and all) that I assumed the better qualified applicants for the program got approved first. In my state, there were 3 options: approved with no SD, approved with 1 mo. SD, and not approved. 

 

In VA, I had to take all requested docs to Bdg Property Mgr first. In the 1-hr meeting, he combed through every single line item of my 3 bank statements. He even asked me about transfers going in and out of my account. He was satisfied with my explanation that I pay one of my bro’s bills every month and he pays me back when he gets paid because of the way his paydays fall. Prop Mgr called me later in the day about getting a notorized stmt from the checking account that was closed. 

 

Personally, I wouldn’t say that the only way I could pay my rent was to have NSF fees. I would say something along the lines that “I have learned how to manage my funds to curtail future NSF fees and moving into more affordable housing will help tremendously.” This way, you are taking full responsibility for this mishap.  

 

Prop Mgr also went over my paystubs with a fine-tooth comb asking about every deduction that wasn’t taxes and SS. So one of the deductions I had to explain was the 401K and had to provide my most recent statement. 

 

Niw to the end. Once the background check and credit reports were pulled, my application still had to go to the City’s Affordable Housing Program before I heard anything. Of course, this step would not have been needed if I wasn’t approved through credit & background check. 

 

I hope this helps some. It is what it is and just go ahead and apply, and get all your paperwork in knowing you’ve done the best that you can do. 

 

GL2U and keep us posted. 

GOALS: Garden til APR 2020 and 800 Club

GIRL WILLPOWER ("No Thanks" to Apple $7.5K, 12.99% Approval)


JUN 2019: EX 788, TU 794, EQ 779
DEC 2018: EX 777, TU 783, EQ 799

|| AmX Cash Magnet $25K || NFCU CashRewards $20K || Macy's $20K || Discover IT $18.7K || NFCU CLOC $15K || NFCU Platinum $12.5K || AmX ED $11.5K || CitiCostco $7K || CitiDC $6.3K ||
Message 7 of 9
Frequent Contributor

Re: Affordable Homes Requirements Scared Me

You are amazing credit inspired. Yes, i passed credit and background check to make it to this last step. I will adjust my wording with the NSF. So nerveous. Will keep you guys updated. I am learning so much from everyone here and very appreciative of the feedback.


July 2019 464-540
July/2019 Equifax-490 to 521 TransUnion-521 to 528 Experian-521 to 540
Current/2019 Equifax-555 (ck) TransUnion-556(ck) Experian-558
Mortgage Scores: Sept/2019 Equifax-Fico5 xxx TransUnion-Fico4 xxx Experian-FIco2 xxx
First Goal 580 by Oct/19 Second Goal 600 by Nov/19 Third Goal 620 by Dec/19 Goal Score:across the board 690+


Message 8 of 9
Community Leader
Senior Contributor

Re: Affordable Homes Requirements Scared Me


@mynewcredit wrote:

You are amazing credit inspired. Yes, i passed credit and background check to make it to this last step. I will adjust my wording with the NSF. So nerveous. Will keep you guys updated. I am learning so much from everyone here and very appreciative of the feedback.


Thank you and Kudos for getting through the first two steps!

GOALS: Garden til APR 2020 and 800 Club

GIRL WILLPOWER ("No Thanks" to Apple $7.5K, 12.99% Approval)


JUN 2019: EX 788, TU 794, EQ 779
DEC 2018: EX 777, TU 783, EQ 799

|| AmX Cash Magnet $25K || NFCU CashRewards $20K || Macy's $20K || Discover IT $18.7K || NFCU CLOC $15K || NFCU Platinum $12.5K || AmX ED $11.5K || CitiCostco $7K || CitiDC $6.3K ||
Message 9 of 9
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