50 Buyers in Walker Farm Lane Pipeline

Fifty prospective buyers remain in the pipeline to purchase homes at Walker Farm Lane, Barrington's affordable housing development off County Road.

Domenic Butler, who is handling the sales of the homes for the builder, West Elmwood Housing Development Corporation in Providence, said he wanted to clarify the situation regarding potential buyers.

A story posted on Patch on Wednesday, June 22, about Walker Farm Lane said that only three homes had sold so far because every other applicant had been unable to get a mortgage.

“It is true that most of the people have not been able to get mortgages,” Butler said. “But they are still not disqualified.” 

“They are just having difficulty getting qualified,” he said. “They do not have the credit score or the funds necessary for a down payment or to close.” 

Butler said West Elmwood is working with the applicants to try to improve their credit worthiness or to come up with a down payment so they can afford to buy property.

“They need the right mix of income and debt,” he said.

Buying affordable housing is not the same as buying regular housing, Butler said.

“It’s a whole different market,” he said, which most people do not understand completely.

Housing prices, for instance, he said, “are not tied to the market. That’s not the way it works in affordable housing.”

Prices of affordable homes move up or down based on subsidies and the ability of a prospective buyer to fit within an income range, Butler said.

“We are selling to income tiers,” he said.

For instance, a buyer at 100 percent of the median income allowed for an affordable house will pay $210,000 for a Walker Farm Lane property. A buyer at the 80 percent level will pay $169,000 for the same house.

Buyers of affordable housing also have deeds that restrict the sale of a home for 99 years, Butler said. 

Buyers can only sell the home down the road to the same income-level buyer. That restriction prevents a buyer from taking advantage of affordable housing guidelines to buy cheap and then sell at a much higher price in a few years.

Butler added that four of the properties are ready for occupancy, including the one home with a separate apartment in it. Three of the homes, including the two-unit property, will close in July.

"We're always looking to accept more people," Butler said, even though the nonprofit is already working with 50 applicants who are struggling to get a mortgage.