Proposed New Home Sales Price Calculation

The proposed calculation for sales price ranges incorporates the following:

1)

28% of gross monthly income is the maximum amount spent on total housing costs.

2)

An estimated 11% of monthly gross income is spent on other housing costs (property taxes, mortgage insurance, property insurance, and homeowners association dues).

3)

17% of gross monthly income is spent on mortgage only (excluding other housing costs).

4)

15 year average interest rate = 8.4%

Household Size

70% Median

100% Median

120% Median

Min. Monthly Income for Mortgage (70% MI)

Max. Monthly Income for Mortgage (120% MI)

Min Sales Price (70% MI)

Max Sales Price (120% MI)

1 bedroom

2-person

$53,763

$76,804

$92,165

$762

$1,306

$99,974

$171,384

2 bedroom

4-person

$67,200

$96,000

$115,200

$952

$1,632

$124,961

$214,219

3 bedroom

6-person

$77,929

$111,327

$133,592

$1,104

$1,893

$144,912

$248,420

4 bedroom

8-person

$88,699

$126,713

$152,056

$1,257

$2,154

$164,939

$282,753

Proposed Sales Price Ranges for 2002

Sales Price Ranges Adopted in 2001

1 bedroom

$99,452 -$161,610

$99,452 - $161,610

2 bedroom

$124,961-$214,219

$124,315 - $202,012

3 bedroom

$144,912-$248,420

$144,205 - $234,333

4 bedroom

$164,93- $282,753

$164,096 - $266,657