In forming One Stop Advantage in April 2007, President and CEO Richard A. Sinapi said he was looking to create a unique full-service, three-firm real estate company. He took a few minutes recently to tell Providence Business News about the current market.

PBN: What types of mortgages are you seeing the most of and how has that changed in the last few years?

SINAPI: With the demise of the subprime market and tightening of Fannie Mae and Freddie Mac guidelines, about 98 percent of our loans are now insured through [the Federal Housing Administration]. FHA allows up to 97-percent financing, has more-lenient credit history guidelines, requires no reserves for one- and two-family homes, permits seller contributions and allows gifts as the source of a down payment. Currently, about 80 percent of our mortgages are purchases, whereas a year ago it was split evenly between refinances and purchases.

About 25 percent of the loans last year were subprime – which no longer exists – and 75 percent were conventional, which now accounts for a very small percentage of our loans. By contrast, as little as two years ago, FHA was the lender of last resort – because of the up-front and monthly-mortgage insurance premiums required – and conventional was the way to go.

The bottom line is, even in the current mortgage climate, people who need to and want to purchase are still able to do so, while gaining the benefit of a buyer’s market.

PBN: When did you form your company and what is your business model?

SINAPI: One Stop Advantage affiliated businesses commenced operations in April 2007.

One Stop Mortgage is now licensed in three states – Rhode Island, Massachusetts and Connecticut, is FHA and [Veterans Affairs] approved and has five full-time loan officers. One Stop Real Estate has expanded to eight full-time and two part-time agents and is licensed in two states, while One Stop Title employs two closing attorneys and a full-time paralegal/closing coordinator.

One Stop Advantage is the first wholly owned, fully integrated mortgage, real estate and title-affiliated business arrangement in the region. By providing all three services under one roof, One Stop Advantage has reduced costs, which it passes on to consumers in the form of substantial bundled-service discounts. By providing all three services under one roof, One Stop Advantage affiliates are also able to ensure a smoother and more efficient sale or refinance transaction. This also provides its mortgage loan officers and real estate agents with a distinct competitive advantage when competing for clients.

PBN: What effect does the current market have on your bundled packages?

SINAPI: Consumers always want to save money. When money is tight, it becomes more important. Our customers almost invariably opt to utilize One Stop Advantage affiliates, both to reap the benefit of the bundled-service discounts – typically saving at least $6,000 when consumers sell, purchase and obtain a mortgage through One Stop Advantage affiliates – and enjoy the convenience of having all three services provided under one roof.

PBN: What do you see as the short-term and long-term future for the residential market in Rhode Island? How long will it continue to trend downward?

SINAPI: With the tightening up of the credit market, there is reduced demand that has in turn led to a high supply of homes on the market for sale. Accordingly, to move their homes, sellers must continue to lower sale prices to strike a deal. This trend will invariably continue until the market reaches more of an equilibrium – probably another one to two years at the outside, depending on a number of factors. These include the state of the local and national economy generally, the scope and content of the ultimate credit bailout and fallout and the financial health of our major national and commercial banks.

PBN: In what areas of the state are you now seeing the most buying? How about the most selling?

SINAPI: Year to date, more homes continue to be sold in the more populous cities: Warwick, Cranston and Providence, followed closely by Coventry. Not surprisingly, with the exception of Providence, the median price of homes in these cities have generally experienced lesser of a decline in value than other cities or towns – particularly when comparing actual dollar decline as opposed to percentage decline. Metro and East Bay cities and towns, with the exception of Providence, also appear to be experiencing less of a decline in median home-sale price, along with some South County and Northern cities and towns, with Narragansett and Glocester actually registering an increase in median sale price.

The sale of bank-owned properties in Providence – low-income areas of which were particularly hard hit by foreclosures caused by failed subprime loans – probably accounts for the relatively high sales in that city, despite a significant drop in the median home-sale price. Because of the substantial decline in sale price, these bank-owned properties and short sales of homes facing foreclosure will continue to attract developers and investors.

One Stop Advantage, a Cranston-based real estate operation that houses three smaller firms, was founded in April 2007 as a full-service real estate company. For additional information, visit www.onestopadvantage.net.