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Is there any word yet regarding what happens with grants come January 1? Or a solid answer on when in the process your grants are “locked” in case something more (or less) favorable happens? We started under the original grants in the spring, and now have it changed twice – and likely a third time – has been a rollercoaster. I didn’t realize there was a limit of 5 points from both sides when using the 0.5% BOA grant, so that’s good to know as well.
My understanding is that NACA does not do any refinancing anymore.
It will be applied to the buydown first. You don’t need to do anything.
Wow @nelsont, I didn’t know about that 3% limit in Maryland. That’s a game changer for us in terms of the grants when the seller is already giving us about 1.8%. Oof.
I am not sure I completely understand, but the buydown dollars are of the same value whether you put them in or the seller does. HOWEVER there is a limit to the amount you are allowed to put down, and they are allowed to put down, for buydown – and those two limits are separate pools of money. You can contribute up to 7% of the selling price, and they can contribute up to 10%. Since neither of those limits seem to be reached in your case, I think this is a personal decision – unless I’m missing something. For me, I want to buy down the rate as low as absolutely possible because that pays off best in the long run. Dollars spent on rate reduction are three times better than dollars spent on principal reduction, or thereabouts. Hopefully if there’s some other issue at play here that I don’t know about one of the more experienced forum folks will chime in.
Yes, do call! I actually discovered I was in this exact position when reviewing my updates after being submitted for qualification. Two of our creditors had issues with their payment system – both reversed the charges and agreed to provide documentation since it was “late” as in caused a fee but not “late” as in reported to the credit bureaus.
So after credit access but before we settle on the new house, we would be able to spend? That’s the real question. I know it doesn’t help with Payment Shock, but I am hoping spending it wouldn’t hurt us if we need to do things to prepare for the new house.
My understanding is that your interest rate locks when you have a P&S ContractDecember 4, 2019 at 12:01 pm in reply to: Qualification Complete! On to Housing Search/Credit Access #62745
@hizwife07 The forum is a GREAT resource, and I have been SO well prepared thanks to Tim, as well as people like Nelsont and Peapod. There’s great information here – just be sure you’re looking at the most recent stuff. Things do change, and right now, the grants are a big thing that is up in the air.December 4, 2019 at 11:50 am in reply to: Qualification Complete! On to Housing Search/Credit Access #62741
Thank goodness, @nelsont – That was my understanding of how it worked. That’s a relief.December 4, 2019 at 11:33 am in reply to: Qualification Complete! On to Housing Search/Credit Access #62737December 4, 2019 at 11:27 am in reply to: Qualification Complete! On to Housing Search/Credit Access #62735
@nelsont How can that be possible with the variables of buydown and the grants and funds not yet being in our account for principal reduction etc.? We spoke about the payment amount, but we never discussed how that translates into a purchase amount. There’s a $150,000 difference in the amount of the purchase we can make depending on those factors.December 3, 2019 at 7:23 pm in reply to: Qualification Complete! On to Housing Search/Credit Access #62691
It seems like what the MC was trying to communicate was that there’s a delay after the holidays, as in right now, after thanksgiving. So I’ll stop freaking out for a couple of days I guess.December 3, 2019 at 6:41 pm in reply to: Qualification Complete! On to Housing Search/Credit Access #62690
Payment shock and histories are definitely not an issue. I hope he just misspoke I’m waiting to hear back on that point.December 3, 2019 at 4:46 pm in reply to: Qualification Complete! On to Housing Search/Credit Access #62687
The website says “Housing Search” but our MC said we’re not Qualified. Evidently the website is wrong. Very disappointed – we were told two weeks ago to expect a 7 to 10 day wait, and now we are being told it’ll be another MONTH. That seems ridiculous, but it is what it is I guess.