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July 11, 2019 at 1:12 pm in reply to: 2019 FFIEC Median Family Income Update & Priority Members #49850
I was also told that the new numbers would be used as soon as they are available. I was told they typically update mid-July.
Congratulations @living20057! I heard probably a half dozen rounds of applause for folks leaving with qualifications just while we were in there. I’m glad to hear you got yours as well!
@peapod0609 That is what I was told by the underwriter, yes, with the small correction that the special areas were selected by Bank of America – not NACA. Tim is going to get the information squared away and let us all know.
So, as I understood it, yes, both the 1% for everyone and the buydown match are still available if you are below 80% of Median income. However, as in my case, we’re in an area where they’re offering an additional 1% for free which bars you from any buy-down. The end result for us was that with the 1.5% rate and the same amount of cash in hand, our payment ended up being the same as if had gotten the .125% rate we were aiming for – so same costs, same payment, just a slightly different allocation of funds.
Thanks @pratik! We hope to have the house sold long before closing, so that doesn’t become an issue. A short term rental will be costly, but will also ensure a much smoother process for us. We’re going to go ahead and wait to sign once we’re NACA approved. Since we’re going to ATD in June, and our savings is on track (and possibly was on track for April as well, depending on what the MC will accept as one-time allowances) the longest we should have to wait is August. Our deadline for other reasons is to close by February, but of course we’re hoping to get in ASAP.
If your conditions don’t require that card be paid off, you should definitely wait. Changes just muddy the process and add more time. At this moment you want to make the Underwriter’s job as simple and straight-forward as possible.
There’s a huge difference between 4% and 0.125% though.. And today’s benchmark rate is 4.13%. Having equity doesn’t mean someone is less qualified or deserving of a fair loan. It sounds like the only needs not being met are reasonable customer expectations, and bad service is certainly not an intrinsic part of the NACA program.May 10, 2019 at 12:02 pm in reply to: New construction – possible to pay builder for upgrades rather than have them ad #48758
Unless I misunderstand something specific to NACA, the appraisal requirement is based on the mortgage amount, not the purchase price. With a standard mortgage, if appraisal comes in below the loan amount, the lender requires you to make up the difference in cash – which is exactly what you’re contemplating doing here. It’s also not in a Builder’s interests to build homes that won’t appraise for what they’re selling them for, so if it’s a large or experienced builder, this shouldn’t be a concern. New construction homes are often appraised based on the land/replacement cost of the specific home and the builder provides a detailed plan and list of materials and features, which should make the appraisal easy to match to the purchase price if the builder is charging correctly.
We were offered one, but we were told it would make our intake appointment delayed until September (instead of the July we were offered back in March.) I don’t know if that delay applies if you’re switching to them, but clearly they’re busier.
If your lifestyle, budget, and expectation of the process don’t conform to NACA, that doens’t mean NACA has done something wrong. They provide the program they provide, and it works for the people it works for. You have the option to conform, and you have the option to walk away. Expecting the rules to change for you – which clearly you do based on your statement that rules shouldn’t apply to you – is the thing you don’t have the option of.
A change in the amount you pay for rent does not, at all, impact Payment Shock since the biggest part of that is determining the difference between your future mortgage and your current housing payment. If you being paying more for rent, then you’re at the same time proving you can pay a higher mortgage.
If you have charge-offs in the past two years, those have to be remedied. That’s a very modest request from a lender about to give you tens or hundreds of thousands of dollars, and who has agreed to completely ignore your credit score in favor of letting you prove in the real world that you can afford a home.
The bottom line really is that if the program isn’t a good fit, it’s not the program’s fault. It may not be your fault either – sometimes things are no one’s fault. But conforming to the program’s requirements is the only way to go forward with it.
I had read other people had done the same thing, but I don’t want to jeopardize our process. It seems like a thing people do, but maybe not a thing NACA is very happy about…
Who? The builder? All of the builders in this area only offer closing assistance if you use their lender, unfortunately. They offer other incentives like upgrade packages, but closing cost help is only if you use their preferred lender.
My understanding from everyone so far is that you cannot be too assertive. But that’s also the key word, assertive – not aggressive or unkind. It sounds like you’ve got a lot of empathy for your MC and the program, which is great, because we’re all just trying to get by – BUT the thing they told me at the workshop, when I called, and here, is that you have to be your own advocate and the process is going to move as quickly as you move it. I’ve heard of many people calling and emailing every single day, and in an electronic world and a sector in which timing is SO important, I don’t think that’s unreasonable at all. Stay as kind as you can, but at the same time, keep pushing to get what you’ve worked for.
You will need save the difference between the amount you are paying now for housing and the total payment for your new mortgage. So as a quick example, if you pay $600/month now in rent, and your new mortgage payment is going to be $700/month, you will need to save $100/month. When we went to the seminar, though, they also mentioned saving $200+ the difference, so that would be $300/month in this example. The idea is you are “practicing” paying your new mortgage to ensure it’s feasible for you, and also saving money at the same time.