Re: Affordable Cohousing
From: Catya Belfer-Shevett (
Date: Mon, 5 May 2008 14:34:57 -0700 (PDT)
Sadly, we have no say in these numbers - the formula goes like this:
"The prices of the homes have been set based on a formula from the state that calculates what sales price a family making 70% of Area Media Income can afford if they pay approximately 30% of their monthly income on housing expenses such as mortgage, condo fees and taxes. The formula presumes a down-payment of 5% for the mortgage, and the household must qualify for a mortgage for the remainder of the home price."

I'm not sure whether they calculate it off the 1 person household or 2 person household, though.

        - catya

Brian Bartholomew wrote, On 5/5/2008 11:31 AM:
    * $136,500 for a 1 bedroom home

    * $46,300 [max income] for a single person

Playing around with mortgage calculators on the web, using a 5% down
payment and 8% interest, it seems to me a loan on this combination of
debt to income is overcommitted and cannot be bought.  Could this be
correct?  I imagine that no one in a coho would want to construct a
financial situation which guarantees the residents are in over their
heads, as this would be 'predatory lending'.  What am I missing?
Is there a planning assumption that other coho members will donate
towards a larger down payment?

Cohousing-L mailing list -- Unsubscribe, archives and other info at:

Catya Belfer-Shevett   ~   webmaster,   ~   Cohousing in MA!

Results generated by Tiger Technologies Web hosting using MHonArc.