How Homeownership Delivers Unsurpassed Family Wealth

The Aspiring Home Buyers Profile from the National Association of Realtors (NAR) found that the American public is still somewhat confused about what is required to qualify for a home mortgage loan in today’s housing market. The results of the survey show that non-homeowners cite it as the main reason for not currently owning a home, as not being able to afford one. This brings us to two major misconceptions that we want to address today.

1. Down Payment

NAR’s survey revealed that consumers overestimate the down payment funds needed to qualify for a home loan. According to the report, 39% of non-homeowners say they believe they need more than 20% for a down payment on a home purchase. In actuality, there are many loans written with a down payment of 3% or less. If you will be a First Time Home Buyer there are even more programs available to you such as Rhode Island Housings 100% financing program. You may even qualify for a $7,500 down payment assistance which could give you the potential to buy a home without bringing any money to the closing table. Many renters may actually be able to enter the housing market sooner than they ever imagined with new programs that have emerged allowing less cash out of pocket.

Feel free to contact us at 401-949-5400 and we will give you our opinion on which type of loan may be best for you.

2. FICO® Scores

An Ipson survey revealed that 62% of respondents believe they need excellent credit to buy a home, with 43% thinking a “good credit score” is over 780. In actuality, the average FICO® scores of approved conventional and FHA mortgages are much lower.

The average conventional loan closed in August had a credit score of 752, while FHA mortgages closed with a score of 683. The average across all loans closed in August was 724. The chart below shows the distribution of FICO® Scores for all loans approved in August.

Bottom Line

If you are a prospective buyer who is ‘ready’ and ‘willing’ to act now, but are not sure if you are ‘able’ to, let’s sit down to help you understand your true options. Give us a call at 401-949-5400 or fill out our Contact Form.

We also invite you to use the navigation bar to visit our home page where you can search for homes, get an instant property valuation on your current home and find other useful information.

A ranch style or single story house can have many attractive features that make them more appealing than two story homes. Whenever you are thinking about buying a new home you should consider the pros and cons of living in a one story home. Your physical mobility, children or no children and ease of cleaning are only a few consideration you should take into account when deciding on how many stories your home should be. 

1. Safety of Children and Seniors

The older adult population can have great difficulty with staircases, and if you want to buy a house you can live in for a long time, you will need to consider the challenges or climbing stairs to a second floor bedroom.  Similarly, a staircase can be hazardous for toddlers who are just learning to walk or crawl.  

2. Heating and Cooling 

During the winter months it may be nice to have a second floor as heat rises, but during the summer it will be difficult to cool the second floor of your home. A ranch style home is more efficient for cooling down fast in the summer months. Your bills will most likely be costly with the attempt to cool down your second floor. Most 2 story homes require two heating and cooling units in order to keep the house at a comfortable temperature throughout. A ranch home is cooled and heated more evenly and the thermostat will remain at a more constant temperature without overworking your units.   

3. Easier Cleaning 

In a home with a second floor, you can develop dust in many odd places that will make your cleaning efforts difficult. You will have a flight of stairs, more corners and baseboards, etc., which can be very difficult to clean. In a single story home, you will be able to easily walk through the space and see the areas that need to be cleaned. With the exception of the ceiling, a ranch home is much easier to clean. More importantly, it will take less time to clean, which means more time doing things you want to do.  

4. Indoor-Outdoor Flow

Ranches are usually built on slabs, so they're level with the yard, and are often laid out in U or L shapes, making them especially conducive to indoor-outdoor living. Take advantage of that by adding French doors, folding doors or retractable sliders.

5. Better Resale Value 

Typically it will cost more to build a one story home, but they also tend to sell for more. Resale value is always important even when you do not intend to sell. Your financial or family life can always change and you will want to get the most money for your home if you end up needing to sell. In most cases, you will be able to list your single story home for more that two story homes in the neighborhood.

View Single Story Homes for Sale in:

Burrillville                                         Cumberland
Foster                                              Glocester
Johnston                                          Lincoln
N. Providence                                  N. Smithfield
Pawtucket                                        Scituate
Smithfield                                         Woonsocket
                                  All

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