Five Questions With: Joseph M. Baptista

Joseph M. Baptista is the president of Anchor Financial Mortgage Inc. in Pawtucket.
Joseph M. Baptista is the president of Anchor Financial Mortgage Inc. in Pawtucket.

(Updated 12:22 p.m.)
Joseph M. Baptista is the president of Anchor Financial Mortgage Inc. in Pawtucket.
The mortgage firm recently partnered with R.I. Housing and its new program, the Ocean State Grad Grant, which is designed to help new graduates purchase homes. He talks with Providence Business News about his firm, the program and the benefits to buying versus renting.

PBN: Can you tell our readers a little bit about your business and what products and services you provide?
BAPTISTA:
Established in 2000, our mission is to provide qualified individuals with mortgage programs that are tailored to fit their unique situations at the most competitive rates in the nation. Registered with the Better Business Bureau since 2001, we are very proud to say we have had no consumer complaints. We take great pride in customer service and our ability to deliver quality loans to our borrowers and lenders. We specialize in both purchase and refinance mortgages. We love working with first-time homebuyers and educating them about the process of purchasing a home and we have access to every purchase program and incentive available.
PBN: What is the Ocean State Grad Grant?
BAPTISTA:
The Ocean State Grad Grant is a program that provides individuals that have graduated from an accredited college within the last 36 months with a grant for up to $7,000 toward the 3.5 percent down payment for a one- to four-unit home in Rhode Island.
PBN: How do folks qualify for it?
BAPTISTA:
The qualification is based on income and credit, the same qualification requirements as a traditional Federal Housing Authority mortgage (and other types of mortgages). Anchor will walk you through all the steps in the pre-qualification process.
PBN: Why should new grads – especially those deeply in debt – consider buying instead of renting?
BAPTISTA:
Why pay rent and your landlord’s mortgage? Granted you may have some student debt as a recent college graduate, but it is time to stop the bleeding. By renting you are not building equity or your credit. Not to mention the significant tax benefits that you receive by becoming a homeowner. There is also the FirstHomes Tax Credit available in conjunction with the Ocean State Grad Grant that allows individuals to get as much as $2,000 per year as a credit when you file your taxes. This FirstHomes Tax Credit is based on 20 percent of your annual mortgage interest for the life of the loan … The tax advantages of owning a home right now are significant.
PBN: Why the five-year requirement?
BAPTISTA:
You are required to own the property for at least five years to have the Ocean State Grad Grant completely forgiven. We want to be sure that this grant is being used by individuals who intend to keep the home for at least five years. If you sell the home within the first five years you will have to pay back a portion of the grant you received based on how long you owned the property.
Correction: An earlier version of this interview misstated the entity that launched the Ocean State Grad Grant.

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