Qualifying for 40B HousingWhat is Considered As A Household?
Qualifying for 40B Housing
What is Considered As A Household?
The Massachusetts Comprehensive Permit Law or Chapter 40B was legislated to address the shortage of affordable housing across the state. Qualified households are encouraged to apply!
But what is the definition of a household? A household all of the people living in the same home or apartment regardless of their marital status.
To qualify, the gross income of every working household member over the age of 18, who are not fulltime students, is considered when determining the income eligibility of the household.
As for the household size, even an expected child may be taken into consideration as a member of the household. When determining the household’s income, each application is considered on a case-by-case basis.
That includes any bonuses, overtime pay, or increased compensation that is not ordinary or customary. Minimum income requirements will be determined by the lender using the Housing Debt Ratio of housing expense.
Housing expenses include the principal, interest, mortgage insurance, as well as, real estate taxes and homeowner’s insurance.
The ratios will vary for each household based on the sale price of the house, the interest rate, and the terms of the loan. The amount of the down payment and other factors are also taken into consideration.
The sale price is determined by calculating your household income at 70% of the area median income which is adjusted for family size. Family size is adjusted according to the number of bedrooms and then determining the 30% of their income for housing costs.
Wondering if your household qualifies for affordable 40B housing? Contact Delphic Associates today for more information!
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