NEW BOA GRANT PROGRAM

We have an awesome new grant program from Bank of America. This grant reduces the already below market NACA interest rate by one percent for borrowers whose income is less than or equal to 80% of the median income for the Metropolitan Statistical Area (MSA) in which they are purchasing.  This incredible new grant is available for Members purchasing in the MSA’s listed below.

For example, let’s say today’s interest rate posted on NACA.com is 3.625%. If the Member is buying in one of the MSA’s listed below and their income shown on the 1003 form (bank application) is less than or equal to 80% of the median for that MSA, they start with a 2.625% interest rate at no cost to them.

The Member is limited to a buy down of additional five discount points using their money, other grant funds and/or from the seller (in this scenario the resulting interest rate is 1.375%).

This NACA/BOA grant applies to both fifteen and thirty-year loan terms. Household members do not have to be included in the application income. The grant is based on the application income even if that differs from their NACA Qualification income.  The MSA income used for the markets below is identified on the FFIEC website by property at

https://geomap.ffiec.gov/FFIECGeocMap/GeocodeMap1.aspx and by area at https://www.ffiec.gov/pdf/msa18inc.pdf . When the median income figures are updated for 2019 later this year, those figures will then be used to determine eligibility.

This grant is available now and will be automatic for members who qualify.

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-VENTURE 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

 

 

 

 

 

 

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4 Comments

  1. southflorida
    Posted June 5, 2019 at 10:34 am | Permalink

    since this is automatic, and The Member is limited to a buy down of additional five discount points using their money, other grant funds and/or from the seller. Can a member opt out of this BOA grant program if he/she is planning to buy down more than 9 points of interest between a combination o member funds, seller contribution and/or lender grant?

    • Posted June 10, 2019 at 3:26 pm | Permalink

      Hello southflorida,

      It is effectively and either-or situation. Whichever will benefit the member more will be used. For example, people with an income below 80% of the median for the area are statistically less likely to have money available to go toward down payment, and many grant programs have a five percent limit anyway, so it would clearly be to their benefit to use the new program over the lender matching grant.

      Tim Trumble
      Online Operations, NACA
      ttrumble@naca.com

  2. Jennifer Clarke
    Posted June 9, 2019 at 5:13 pm | Permalink

    I’m trying to understand. My application was submitted but I have not heard back yet. My counselor is new to the program and he’s been learning as we go. He told me about this new program, but I am purchasing in surprise AZ 85379 or very close to it. That is not on the list. Even in the link I clicked on I don’t see surprise or Waddell in those listings. Does that mean I do not get this grant or special program? Is the older program where they match a portion of what you pay in points still available? Thank you. Also, I’m trying to do a 15 year loan

    • Posted June 10, 2019 at 3:17 pm | Permalink

      Hello Jennifer Clarke,

      Surprise AZ is indeed in the Phoenix MSA and therefore qualifies for the new program. The existing lender matching grant is also still in place, and creates an either-or situation as one program will likely benefit the member more than the other based on their specific circumstances. Don’t worry, your counselor has plenty of resources available to make sure you use the program that will get your the better deal.

      Tim Trumble
      Online Operations, NACA
      ttrumble@naca.com

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