We know buying a home can feel overwhelming, especially when navigating the financial side of things, but fear not! This blog is your one-stop guide to understanding how much income you need to purchase a home on Staten Island.

To begin with, we'll discuss factors like credit scores and different types of loans. We'll also explore some neighborhood price ranges and sprinkle in some helpful info about the cost of living in New York to give you a well-rounded picture.

The Credit Checkup

Before diving into prices, let's talk about credit scores. A good credit score (generally above 670) is key to securing a favorable mortgage interest rate. The lower your interest rate, the less you'll pay over the loan term. In essence, you are saving you money in the long run. If your credit score isn't quite there, don't worry; you can take steps to improve it before you start house hunting.

Loan Lowdown: Your Financing Options

Now, let's talk about the different types of home loans available. Here are some of the most common ones:

Conventional Loan: This is the most popular option, typically requiring a minimum down payment of 20% and competitive interest rates. Conforming conventional loans, which have guidelines set by the Federal Housing Finance Agency (FHFA), are a popular choice among homebuyers. These guidelines typically include loan limits and borrower requirements, ensuring the loan 'conforms' to specific standards. Conventional loans come in various forms, including fixed-rate, adjustable-rate, and conforming loans.
FHA loans: Borrowers must pay two types of mortgage insurance premiums (MIPs). The first is an upfront premium, which is typically 1.75% of the base loan amount and can be rolled into the loan. The second is a monthly premium, which varies depending on the loan term and down payment amount. First-time homebuyers may find that an FHA loan is their most affordable mortgage option. Plus, the opportunity to apply with a lower credit score.
VA Loan: For our veterans, VA loans offer a zero-down payment option and are a fantastic way to secure homeownership. No need for Private Mortgage Insurance (PMI)

Your loan type will depend on your credit score, down payment savings, and military service status. We recommend speaking with a Robert DeFalco Realty mortgage specialist at Think Mortgage to find the perfect loan option for you.

Staten Island's Home Price Spectrum

Staten Island's housing market offers something for everyone, from cozy bungalows to sprawling estates. The average housing price in Staten Island is around $650,000.Here's a peek at some average home prices in a few neighborhoods to give you a general idea:

South Shore - Huguenot, South East Annadale, Prince's Bay: Staten Island's pricier side has a median listing price of around $900,000. South Shore offers a suburban feel with treeline streets, wide streets, detached homes, and easy access to the Outterbridge.
Mid Island - New Dorp, Richmondtown, Oakwood, Midland Beach: charming neighborhoods offering median listing prices around $750,000. Mid Island is great for locals who like to live in the middle. You are surrounded by restaurants, strip malls ( The Boulevard is the newest addition), and quick beach access.
North Shore - Westerleigh, Clove Lake, West Brighton: These areas boast a variety of housing options, with a median listing price of around $650,000. City workers can rest assured that traveling from the North Shore to New York City can cut their time in half.

Remember, these are just averages; the actual price will depend on the house's style, square footage, property size, location, and condition. Time of the year also plays a factor. August is a busy time for purchasing houses in Staten Island. Staten Island Live reported that 302 homes were sold in August 2023, making that month the most sold.

Money Matters: New York's Cost of Living

Staten Island, with its lower cost of living compared to some of the other boroughs in New York City, offers a reassuring financial landscape for potential homebuyers.

Median Income in Staten Island: According to the latest data, the median household income in Staten Island is around $93,164.
Median Living Expenses: Living expenses in New York can vary greatly depending on lifestyle, but a reasonable estimate is around $4,500 monthly. This includes groceries, utilities, transportation, and entertainment.
Property Taxes: Property taxes in Staten Island vary depending on location and home value. However, you can expect to pay property taxes from $5,000 to $8,000 annually.

The Rule of Thumb: How Much House Can You Afford?

Now, for the big question: How much can you comfortably afford? A common rule of thumb is that your mortgage payment should be at most 28% of your gross monthly income. This includes principal, interest, property taxes, and homeowners insurance.

Let's break it down. If you take out a loan of $650,000, a 20% down payment would be $130,000, leaving you with a loan amount of $520,000. With a 30-year fixed-rate mortgage at the current average interest rate of around 6.88%, your monthly payment would be approximately $2,700.

Let's Talk Affordability

Remember, this is just the beginning. It's crucial to consider your entire financial picture, including debt, emergency savings, and future financial goals. Here at Robert Defalco Realty, we believe in responsible homeownership. We're here to help you find a home that fits your budget and sets you up for financial success.