Maximum Sales Prices
Maximum sales prices for newly constructed Affordable Housing are
calculated based on the following criteria:
- The home must be affordable to people in the income range of the category. The national standard for affordability is that a household's housing costs should not be more than 30% of their gross income.
- We assume a 5% down payment
- We assume 7.5% mortgage interest based on the 20 year national average. This is done to keep homes affordable over time. If interest rates go up, buying power goes down.
- HOA dues and taxes and insurance are 5% of housing costs.
- We assume the buyers will get a 30 year mortgage
Maximum Sales Price Chart for Printing