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What is the definition of “affordable” and what does that translate to in terms of sale prices?

April 26, 2017affordable definition prices sale terms translate

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What is the definition of “affordable” and what does that translate to in terms of sale prices?

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A for-sale unit is considered to be affordable if the total monthly payments for mortgage, property taxes, insurance and homeowner’s association fees does not exceed 28% of eligible monthly gross income calculated by family size. Table 3 illustrates typical sales prices. (please note: the sale prices vary based on the age/ condition of the unit and mortgage interest rates available at time of initial sale.