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The loans have been in default well over 2 years. He’s paid off some credit cards so his score isn’t hurting too much. Thanks for the input.
If the default is indeed an issue, Can loan qualification be contingent on the default being removed?
We plan on attending the ATD event in July, if we start rehabilitation now, that will give us 3 months out of the 9 months of consecutive required payments to get out of default.
Sorry for this 2nd ETA but been doing a lot of research as don’t see an edit option.
ETA: from the workbook, it says:
A quicker route to remove your loan from default is a direct consolidation loan…………under this program your default is not removed from your credit history.
I’m confused by this. The default remaining on credit history will not have a negative impact on approval in the case of consolidation? Otherwise what’s the point/benefit as it pertains to Naca?
Tim does that go for household members as well? (Not co signers)
Sorry for the sidebar but I must ask if it was difficult getting the grant to work with naca? There seems to be lots of issues per this forum, with either MCs or grant personnel being unable to make things work. Any issues especially with compatibility an how they were resolved? Thanks
One more question about this, how is the market value determined for the rental units, is it the median rent for the neighborhood as can be found on realty sites?
So a 3 bedroom unit would be higher value than a 2bedroom unit… or is it calculated all the same?
It was stated above, we pay $400 a month in rent and are putting aside $250 a month.
Thanks Tim, I am a bit confused,
In your example, the 350 is counted as payment shock because the borrower that is how much more the borrower can afford to pay based in the 31% calculation. So it is *not* how much the borrower is actually putting aside extra each month in the “traditional” sense of payment shock? Is that correct?
Using my real life example, my husband and I based on the 31% calculation can afford to pay $959 a month yet we pay only 400 (a live in relative pays the rest). So the $559 difference would count as shock even though we are not literally saving that amount each month?
If that is indeed the case, if our accounts total increased by say $250/month, that too would count towards payment shock?
Lastly, is there a cap at the number of units in a multi family. In the case of a 3 family, it would be 75 percent of (rent×2)?
559 + 250 + .75(rentx2) would be the amount we qualify for?
Thanks for your help.
Thanks for the info, I should have been specific. We are planning to attend either the NJ/NYC or Philadelphia event.