I am struggling in qualifying these loans and feel like I am missing something. It is my understanding that in order to qualify the proposed rents need to fall below HUDS fair market rents AND be at the affordable rent threshold is that correct? The reason I am questioning is I have 2 apartment complexes located in a low CT, according to their rent rolls the lowest rent rate is $695 and highest is $1,225.00 The AMFI for the area is $82,000.00 so based on my calculations the affordable rent threshold is $1,640.00. Then doing the calculations on the income needing to afford it that essentially for the $695 the qualifying income was $27,800 and for the $1,225 the qualifying income was $49,000.00. But when I go and look at the FMR's the rates are lower (low - $597.00 & high - $875.00 so now this won't qualify? I feel like I might be missing something. This is a $5 million loan so would be nice to get this to qualify. My calculations are below for reference.
AMFI - $82,000.00
($82,000.00 x .80) x .30 / 12 = $1,640.00 (affordable rent threshold)
Lowest Rent Rate - $695.00
($695 x 12) / .3 = $27,800.00
$27,800.00/$82,000.00 = 33.90%
Highest Rent Rate = $1,225.00
($1225 x 12) / .3 = $49,000.00
$49,000.00/$82,000.00 = 59.75%