TTrumble

Forum Replies Created

Viewing 15 posts - 31 through 45 (of 6,790 total)
  • Author
    Posts
  • in reply to: Can a 401k loan from a family member count as a gift? #71531
    TTrumble
    Member

    Hello F_Perkins,

    The gift would be allowable, but only on the narrowest of technicalities, to which you referred. Even then, it’s still not a good idea.

    Borrowed funds are not allowed to be used as buy-down funds, even gifted borrowed funds since there may actually be an under-the-table agreement to pay it back to the person giving the gift. However, 401k funds are in fact already the borrower’s funds, and technically it’s impossible to borrow from yourself.

    The caveat here though is the tax implications for the borrower/gifter if they don’t pay it back. The money will automatically become taxable income, plus the IRS will hit it with a 10% early withdrawal penalty. Therefore, the $25,000 could cost them and additional $8,500 if they’re in the 24% tax bracket and a whopping $12,000 if they are in the 38% tax bracket.

    If they run into trouble paying it back, who do you think they will come looking to for some help? And the moment you give them one dollar, it puts you in violation of your membership agreement with NACA.

    Give it lots of thought before you act.

    Tim Trumble
    Online Operations, NACA
    ttrumbel@naca.com

    • This reply was modified 1 month, 4 weeks ago by TTrumble.
    in reply to: Rental History and Payment Shock #71526
    TTrumble
    Member

    Hello bejee99,

    You have quite a convoluted situation on your hands, so let’s establish some clear priorities here as you right now are trying to have your cake and eat it too.

    Priority #1 – Your family. Priority #2 – Homeownership

    Get your family out of the current bad conditions, and establish yourselves all together in a new place, in your name. You get several benefits from this.

    Moving elsewhere gets your family out of that questionable environment and allows you to establish a rental history in your own name. This in turn sets a reasonable Payment Shock amount for you to save each month. You will have to establish 12 months there to get qualified, so choose your lease term with some extra time in mind, and get your first counseling appointment scheduled for as soon as possible after reaching the 12-month mark.

    The credit check, etc. won’t affect your qualification, but staying in the situation you are presently in will no doubt be a brick wall for you.

    Paying someone else’s rent is not allowed to be counted toward your payment qualification. You have to be living where you pay rent, both in reality and “on paper”. Therefore, you would have a 100% Payment Shock requirement under the current circumstances. In other words you would be required to same the entire amount of your desired mortgage payment each month on top of paying for their apartment.

    So think “family first” and everyone will benefit. It’s going to be another 15 to 18 months before you become a homeowner, but setting that realistic timeframe will benefit everyone concerned.

    Tim Trumble
    Online Operations, NACA
    ttrumble@naca.com

    • This reply was modified 1 month, 4 weeks ago by TTrumble.
    in reply to: Manufactured Home + Land? #71523
    TTrumble
    Member

    Hello NACAhopeful,

    The bottom line on all this is that you can buy a doublewide, but we are going to heavily discourage it.

    The NACA program is designed to help people establish affordable homeownership as a means of building equity, establishing personal wealth and create generational wealth through a family home that can be passed on to future generations.

    That doesn’t happen with mobile/doublewide homes. They are the only type of home that actually depreciates and loses value over time. HUD requires us to offer it as long as specific requirements are met, but the fact is they’re just a bad investment, period.

    Get a construction loan, build a “real” house on the land and create a more solid future for yourself.

    Tim Trumble
    Online Operations, NACA
    ttrumble@naca.com

    • This reply was modified 1 month, 4 weeks ago by TTrumble.
    in reply to: Counseling Assistance #71521
    TTrumble
    Member

    Hello ddipini,

    The answer, in a word, is persistence. There’s no magic bullet, no secret back-door phone number, etc. You just have to be a polite pest about it. Call NACA Member Services at 425-602-6222 and ask them for help. Ask them to also reach out to the office manager and regional director on your behalf.

    Don’t forget, we’re still facing a number of obstacles on our end with some staff members some still working at home, offices still being closed to the public, and so on. Persevere and keep reaching out for help. You’ll get there.

    Tim Trumble
    Online Operations, NACA
    ttrumble@naca.com

    • This reply was modified 1 month, 4 weeks ago by TTrumble.
    in reply to: Great Lakes Borrowers #71520
    TTrumble
    Member

    Hello dayna and brenee09,

    Just FYI, the reason is very simple as to why you must be the one to contact Great Lakes. Just like every other credit account, by federal law, they cannot discuss this loan with anyone other than the person named on the loan.

    @Martin, did you already have a payment history established before the pandemic payment suspensions went into effect? If so, that would have given us a history to work with that would have made the difference.

    Tim Trumble
    Online Operations, NACA
    ttrumble@naca.com

    in reply to: What does this mean? #71518
    TTrumble
    Member

    Hello before40,

    Hre’s teh bottom line:

    Don’t worry about which “opportunity” it is. That’s completely irrelevant and an arbitrary notation by the loan processor at the bank. Just deal with what’s there. If there is anything you specifically have to deal with, your counselor will let you know. Much of what comes from the bank at this point are internal items between the bank ane NACA.

    Likewise, the “suspended” notation is nothing to worry about. In some ways, that’s actually good news because it means that the file is so close to the CTC that they have to technically suspend it if they need to do anything else with it before the CTC is issued.

    In short, just stick with it. Whatever you are asked, no matter how redundant it may seem, take care of it. Let the system work, and you’ll be at the closing table very soon.

    Tim Trumble
    Online Operations, NACA
    ttrumble@naca.com

    in reply to: Incorrect info on Affordability Form #71515
    TTrumble
    Member

    Hello sweetlilly,

    Please refer to the email you have been sent regarding your approval amount and Payment Shock.

    Once your are qualified, we will get your file set up for the Oklahoma City MSA, until you are qualified, it doesn’t really matter.

    Tim trumble
    Online Operations, NACA
    ttrumble@naca.com

    in reply to: Determining “Priority Area” for New Neighborhood #71513
    TTrumble
    Member

    Hello wrhollis,

    Just FYI, when a street address for a new construction home hasn’t been registered yet, the builder can give you the exact longitude and latitude of the property and its location in relation to the Census Tract can be determined that way.

    It looks from you second post that you have largely answered your own question. The Census Tract where the home is being built is a non-priority tract, and therefore not an area in which you are eligible to buy. And yes it’s a rule that we have no choice to be strict about. I’m sorry I can’t give you better news.

    Tim Trumble
    Online Operations, NACA
    ttrumble@naca.com

    in reply to: Dealing with charge off- Word of advice #71512
    TTrumble
    Member

    Hello freshstart12,

    Thank you for sharing what is likely some very valuable info!

    Tim Trumble
    Online Operations, NACA
    trumble@naca.com

    in reply to: Bank App No Movement #71417
    TTrumble
    Member

    Hello all,

    This is the phase of the process, above and beyond any other, where people mistakenly equate not hearing anything with nothing happening.

    The vast majority of the work at this point is “behind the scenes” and does not involve the NACA member directly. Most requests made by the bank are made to us rather than the member during this phase. So it’s entirely possible that the wheels are turning but the member doesn’t hear anything because there’s nothing that requires their attention.

    Yes, BOA has been taking longer than is considered normal to process bank apps but that is because the department at BOA that exclusively processes NACA applications isn’t as big as it needs to be. They’ve been overburdened especially since Citi dropped out of the mortgage business a couple of years ago and the incredibly rapid growth of NACA during the same time has only added to the strain. BOA has been hiring new loan processors for the department continually, but by the same token, we submitted more bank apps to BOA in July than in any other month in our history. Add to that the extra hassles we’ve all gone through with the pandemic, and processing time for bank apps can easily become a guessing game.

    Nothing in the world has been “normal” for six months now and sellers should understand this as much as buyers. Right now, patience is the only answer.

    Tim Trumble
    Online Operations, NACA
    ttrumble@naca.com

    in reply to: VVOE for School Employee out for summer? #71415
    TTrumble
    Member

    Hello zuboogie,

    The Verbal Verification of Employment (VVOE) is the very last step before granting the final Clear to Close. You may want to provide additional contact information for other people in authority who can verify your employment such as a principal or other supervisory personnel.

    Tim Trumble
    Online Operations, NACA
    ttrumble@naca.com

    in reply to: BOA Grant #71412
    TTrumble
    Member

    Hello all,

    Here is the list of MSA’s in which the BOA automatic 0.5% rate reduction applies for households making less than 80% of the median income for the MSA in which they are buying:

    Here is the list of qualifying MSA’s:
    PHOENIX-MESA-SCOTTSDALE AZ
    ANAHEIM-SANTA ANA-IRVINE CA
    FRESNO CA
    LOS ANGELES-LONG BEACH-GLENDALE CA
    OXNARD-THOUSAND OAKS-VENTURA CA
    RIVERSIDE-SAN BERNARDINO-ONTARIO CA
    SACRAMENTO-ROSEVILLE-ARDEN-ARCADE CA
    SALINAS CA
    SAN DIEGO-CARLSBAD CA
    SANTA CRUZ-WATSONVILLE CA
    SANTA MARIA-SANTA BARBARA CA
    DENVER-AURORA-LAKEWOOD CO
    BRIDGEPORT-STAMFORD-NORWALK CT
    NEW HAVEN-MILFORD CT
    WASHINGTON-ARLINGTON-ALEXANDRIA DC/VA/MD/WV
    WILMINGTON DE/MD/NJ
    FORT LAUDERDALE-POMPANO BEACH-DEERFIELD BEACH FL
    JACKSONVILLE FL
    MIAMI-MIAMI BEACH-KENDALL FL
    ORLANDO-KISSIMMEE-SANFORD FL
    WEST PALM BEACH-BOCA RATON-DELRAY BEACH FL
    SAVANNAH GA
    CHICAGO-NAPERVILLE-ARLINGTON HEIGHTS IL
    LAKE COUNTY-KENOSHA COUNTY IL/WI
    BOSTON MA
    CAMBRIDGE-NEWTON-FRAMINGHAM MA
    BALTIMORE-COLUMBIA-TOWSON MD
    SILVER SPRING-FREDERICK-ROCKVILLE MD
    DETROIT-DEARBORN-LIVONIA MI
    CAMDEN NJ
    NEWARK NJ/PA
    ALBUQUERQUE NM
    LAS CRUCES NM
    SANTA FE NM
    LAS VEGAS-HENDERSON-PARADISE NV
    BUFFALO-CHEEKTOWAGA-NIAGARA FALLS NY
    NASSAU COUNTY-SUFFOLK COUNTY NY
    NEW YORK-JERSEY CITY-WHITE PLAINS NY/NJ
    MONTGOMERY COUNTY-BUCKS COUNTY-CHESTER COUNTY PA
    PHILADELPHIA PA
    AUSTIN-ROUND ROCK TX
    DALLAS-PLANO-IRVING TX
    SAN ANTONIO-NEW BRAUNFELS TX
    RICHMOND VA
    VIRGINIA BEACH-NORFOLK-NEWPORT NEWS VA/NC
    SEATTLE-BELLEVUE-EVERETT WA
    TACOMA-LAKEWOOD WA

    Tim Trumble
    Online Operations, NACA
    ttrumble@naca.com

    in reply to: Follow Up Appointments #71411
    TTrumble
    Member

    Hello nitromiles,

    You will receive a text alert approximately one hour before your ATD event appointment will come up. Since we can only estimate that one hour lead time though, it’s best to go to your computer and log on to the meeting address you will receive by email within a few minutes of getting the text. Once the counselor comes on line for your appointment, he or she is only allowed to wait ten minutes before moving on to the next appointment, so it’s best if you are already there on line waiting.

    Tim Trumble
    Online Operations, NACA
    ttrumble@naca.com

    in reply to: Confused by the buydown #71410
    TTrumble
    Member

    Hello ltooks,

    Unfortunately, the Houston metro is not one of the areas eligible for the automatic 0.5% interest rate reduction.

    Remember that the buydown is a rate reduction of 0.25% per each point (1% of the mortgage amount) paid in buydown funds on a 30-year loan and 0.5% per point on a 15-year loan, so how much you can buy down is based on the amount of the mortgage, how much money you have available (which includes grants, gifts, etc.), whether it’s a 15 or 30 year loan, the five point limit for personal buy down contribution and the ten point seller limit.

    Tim Trumble
    Online Operations, NACA
    ttrumble@naca.com

    in reply to: Requirements for P&S Contract #71328
    TTrumble
    Member

    Hello RAnthony,

    Your closing will almost certainly take place in the closer office. We typically consider a two hour drive to be the point at which we will start to consider a remote closing.

    Unless the builder wants to pick up the tab for the closing costs instead of BOA, he’ll agree to close at the NACA office. (You might want to consider offering to pick up the builder’s rep and have him or her ride along with you to the closing, and then spring for lunch afterward just to sweeten the deal and make the trip less of a chore for the builder. Kind of a “working day off” with a nice ride, a nice lunch and only one item on his/her agenda for the day.)

    Tim Trumble
    Online Operations, NACA
    ttrumble@naca.com

Viewing 15 posts - 31 through 45 (of 6,790 total)
Follow us on Facebook RSS Feed Follow us on Twitter