for business partners
Rhode Island Housing provides a maximum purchase price calculator for approved monitoring agents and developers for the purpose of determining maximum sales prices for deed restricted affordable housing properties.
Sole point of contact: All inquiries about which purchase price calculator tool is the most appropriate to use given your situation, and to otherwise ask about the pricing of affordable homes, go to Eric Alexander, Assistant Director of Development, at firstname.lastname@example.org. Eric's phone number is 401-457-1236.
Entering Current Interest Rate
Freddie Mac Primary Mortgage Market Survey 30-year fixed-rate average as of 2/21/2019 (updated every Thursday) is: 4.35%
Enter the current interest rate as a decimal in the interest rate blue cell in the purchase price calculator. For instance, for 4.2%, enter 0.042 into that cell.
These files are Excel templates (.xlt extension), which means the file you download or open will automatically be a copy. Please save the spreadsheet on your computer as a .xls or .xlsx file.
If you receive a circular reference warning, there is a way to override the issue. Go to the Excel Options menu (in Tools menu for Excel 03-07, under the File tab in Excel 10). Then find Formula options. Click the box that enables iterative calculations. This will resolve the circular reference warning if completed correctly.
Save the file to your computer, then Open. Opening the file straight from the website may not automatically engage Microsoft Excel, limiting its flexibility.
Overview of inputs
The most important input is the maximum gross monthly income of the potential buyer in that municipality, which is established by HUD. The guide for choosing these inputs will be found in a table to the right of the maximum sales price table. For example, a 2 bedroom (3 person) home in Barrington with an 80% AMI level restriction is affordable to families earning no more than $4,333 per month (FY14 levels). This amount is to be input in the 'Gross Monthly Income' field. All other fields will then automatically generate (except condo fees, which, if applicable, please enter yourself). NOTE: The gross monthly income amount changes for the six municipalities not included in the Providence-Fall River Metro area. Different values will appear at right for these six municipalities.
We maintain the current approved data in the other fields such as property tax and mortgage insurance rates, and interest rates therefore you should always use this webpage to run the Purchase-price calculator. Hazard insurance rates are updated annually based current mortgage payment information as measured by Rhode Island Housing.
Please note that the household size used should include one more person than the number of bedrooms (e.g.: the purchase price for a two-bedroom home should be calculated using a three-person household median income), except in the case of age-restricted developments in which case a two-person household size should always be used to calculate the purchase price.