The least states:"Tenant shall pay a "late charge" not in excess of five (5%) percent of the amount in arrears for each month the arrears remain unpaid if any Rent is paid more than ten (10) days after the due date thereof, to cover the extra expense involved in handling delinquent payments.

I have not thought of using DTI instead of 3x the monthly rental amount in order to qualify an applicants income, but you made a great point regarding the priority that tenants might give a car payment.

Are there a decent amount coming on the market, or is there like 1 a month? 

If they pay the new amount on time no problem.

Minimum loan amount is $250k.

And this is why you fix your DTI issue, so you can do things properly and not get "creative" and learn the hard way.  

@Jonathan Greene I don't mind them generally but when they raise huge amounts for syndications that go south that is another story.

It likely means you have that amount of coverage when caused by another peril and as mentioned it's typically a significantly lower limit than other coverage amounts.If a pipe bursts, it will likely be covered. 

Sometimes 5 in the case of 9% LIHTC deals but all the way up to 15 as I’ve seen in 4% deals.  9% is competitive meaning there’s only a certain amount of projects awarded each year by your states HCR.  4% is not competitive and is usually more appropriate for large projects because 9% will get allocated to projects of smaller size so as to spread the benefit.  

I get a lot of questions about housing vouchers and how you determine rent amount allowed.