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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35 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

      • DiddyBlue
        Posted June 28, 2019 at 4:33 pm | Permalink

        Hello TTrumble, I live in Phoenix Az, does the MSA go by zip code? Would Laveen be considered Phoenix?
        Thanks for your time!

        • Posted June 28, 2019 at 6:46 pm | Permalink

          Hello DiddyBlue

          Details regarding the exact geographic boundaries of any MSA can be found on the website of the Federal Financial Institutions Examination Council at http://www.ffiec.gov.

          Tim Trumble
          Online Operations, NACA
          ttrumble@naca.com

  3. Ruth
    Posted June 14, 2019 at 8:16 pm | Permalink

    This is a great news but my question is what’s does it mean when you say “ house hold member do not have to be included” ? We are trying to get qualified using my husband income only since I am a stay home mom. My husband started working another job (prn)so that we can qualify for a higher and we are just waiting for the prn job to hit 1 yr so that naca will approve it. I am going to start a job and that will put us a little over 80% of the median income. Does it mean we are not qualified even if naca won’t use my income for qualification? With out me working, we are under 80%.

    • Posted June 19, 2019 at 12:27 pm | Permalink

      Hello Ruth,

      You essentially answered your own questions. The incomes of household members whose names will not appear on the bank application or mortgage will not be included in the income figure that determines eligibility for the 1% reduction. Likewise, your job will be too new to be included for either qualification or eligibility for the reduction.

      Tim Trumble
      Online Operations, NACA
      ttrumble@naca.com

      • Ruth
        Posted June 23, 2019 at 5:58 pm | Permalink

        Thank you @ ttrumble

  4. RichStalwart15
    Posted June 17, 2019 at 1:47 pm | Permalink

    Hello TTrumble,

    Thanks for this information. My current salary is 90,000 because I got a raise, but I will probably only make 80k this year. Is this figure based on what I will in theory am going to make by the end of the year or my current monthly income(7500×12)? In other words my tax return will say I made 80 in 2019 even though my salary is 90. Also what happens if you get a raise after going under contract?

    I am looking in the MSA 47894 area (Washington DC-VA-MD) area which in 2018 had a median income of 114,900. If my calculations are correct I fall in the 78th percentile and would be eligible for this program. Is my evaluation correct? This area is very hard to buy in because of gentrification. Many Washingtonians are being pushed out by the upper middle class.

    • Posted June 19, 2019 at 12:21 pm | Permalink

      Hello richStalwart15,

      Based strictly on what you have written here, even at $90K you are at 78% of median and should qualify for the extra 1% reduction off the base rate as long as you buy in the Washington MSA.

      BTW, getting a raise after going under contract will not affect your situation since it will be too new to be eligible to be used for calculating your qualification.

      Tim Trumble
      Online Operations, NACA
      ttrumble@naca.com

  5. RichStalwart15
    Posted June 20, 2019 at 9:08 am | Permalink

    Thanks Ttrumble,
    I’m going to the Achieve the Dream event in NY next weekend. Wish me Luck!

    Best Regards ,
    Rich

  6. Alikay
    Posted June 23, 2019 at 9:02 am | Permalink

    Which figure should I be looking at for qualification for this program using the FEEIC website “2018 Estimated tract median family income”? Or
    “2018 FFIEC Estimated MSA/MD/non-MSA/MD Median Family Income”

    Thanks

    • Posted June 23, 2019 at 11:42 pm | Permalink

      Hello Alikay,

      Neither has anything directly to do with qualifying for the NACA program. They are used to determine if you will have any restrictions on where you may buy or if you will qualify for certain interest rate reduction programs.

      Qualification is based on your past two years of financial history and your affordability as determined through our counseling process. Please sign up for a Qualification Workshop in your area or to attend and Achieve the Dream Event for details.

      Tim Trumble
      Online Operations, NACA
      ttrumble@naca.com

  7. Antoinette Morrisoin
    Posted June 26, 2019 at 3:49 pm | Permalink

    Thank you for posting this. My MC mentioned this the other day and I’ve been trying to research when this would go into effect. A few questions….I’m NACA qualified and located in the Frederick Maryland area and will possibly go under contract next week. What department would provide the details and confirm the interest rate and at what point of the process? Do I need to inquire about a form or does a specific department just apply it to my NACA file/Contract?

    • Posted June 27, 2019 at 8:19 pm | Permalink

      Hello Antoinette Morrioin,

      It’s automatic. The calculations are built into the NACA-Lynx system.

      Tim Trumble
      Online Operations, NACA
      ttrumble@naca.com

  8. cara
    Posted June 27, 2019 at 6:37 pm | Permalink

    I have a question regarding B of A Grant.
    My understanding was that units do not qualify for B of A grant.
    Does the grant only apply to a single family homes?
    Member is target member buying in a Los Angeles target area purchase price above 1Million 4 units.

    Loan scenario 4 units – In Target area Los Angeles MSA way under 100%
    Purchase price $1,175,000.00
    7pts =$82,250 Seller is crediting towards rate buydown.
    5.5pts=$64,625 Buyer’s own pocket towards rate buydown.
    Buyer has sufficient funds from her own pocket to cover Reserves, Minimum Required to close, up to 5.5% rate buydown and even enough to apply towards principle anywhere in between $75K-$150K and will still have over $100K left over in savings to cover a rainy day.

    • Posted June 27, 2019 at 8:17 pm | Permalink

      Hello cara,

      If I remember correctly, the problem isn’t that it’s a multi-unit, it’s the price. As I recall, any property over a million is not eligible for the matching grant program.

      Tim Trumble
      Online Operations, NACA
      ttrumble@naca.com

  9. cara
    Posted June 28, 2019 at 4:14 pm | Permalink

    Good to know, thank you for the clarification. So it seems as long as we find units with a price under 1Million; including rehab then buyer should qualify for B of A grant.

    Follow up question, is the B of A grant available to both target and non-target members?
    If non target members also qualify for B of A grant, are they required to purchase in a target area?

    • Posted June 28, 2019 at 6:51 pm | Permalink

      Hello cara,

      Only targeted members (buyers with a household income less than 100% of the median income for their Metropolitan Statistical Area) are eligible for the BOA matching grant.

      Tim Trumble
      Online Operations, NACA
      ttrumble@naca.com

      • RichStalwart15
        Posted July 8, 2019 at 2:49 pm | Permalink

        Hi Ttrumble,
        I came to NYC last week and was re-approved for what I asked for— $1800, my counselor insinuated that I could have asked for more and I should have because I am really cutting it close with some of my properties. I make 90k and asked for 1800 (debt payments of 160/month). I am at 78% the median income for my area

        How long is BOA sponsoring this grant? I just received my property specific letter and they are calculating the interest rate at 3.5 instead of 2.5%. They want me to buy down to 3.25%. I have the funds to do so but would prefer to only use seller help for a buy down and the BOA grant to put me between 2.25 and 2.5 percent based on how much seller help I receive. I am having a little anxiety about the grant because other than here and verbal assurances at the achieve event, there is not much documented information about this amazing incentive

  10. livingonaprayer
    Posted July 7, 2019 at 1:38 pm | Permalink

    Hello Tim,

    Thank you for posting the qualifying MSA’s. I’m in the Ft. Worth, TX area; Tarrant County and was curious if that is the complete list? I noticed Ft. Worth-Arlington from the census link that was listed. I fall below the median income for 2018. Does that MSA qualify? If I’m understanding correctly the grant could increase my approval amount allowing more homes to choose from? I feel like I’m missing something because I don’t feel confident in my understanding of the grant. Can you please offer and feedback or clarity?

    • Posted July 14, 2019 at 1:08 pm | Permalink

      Hello livingonaprayer,

      The list posted on the Forum blog page is the complete list for the MSA’s for the new BOA program. As such, the Dallas-Fort Worth-Arlington MSA is not one of the areas eligible for the new program.

      Tim Trumble
      Online Operations, NACA
      ttrumble@naca.com

      • livingonaprayer
        Posted July 16, 2019 at 12:34 pm | Permalink

        When can we expect an updated listed?

        • Posted August 1, 2019 at 11:51 am | Permalink

          Hello livingonaprayer,

          If I remember correctly, the FFIEC list is updated in September each year.

          Tim Trumble
          Online Operations, NACA
          ttrumble@naca.com

  11. Sandy
    Posted July 8, 2019 at 5:08 pm | Permalink

    I just got a permanent job 2 months ago after a few years of working as a temp for several different companies… Do I qualify for this program
    ?

    • Posted July 9, 2019 at 8:14 am | Permalink

      Hello Sandy,

      As long as the employment has been consistent over the past two years with no gaps of 30 days or longer, you will be fine.

      Tim Trumble
      Online Operations, NACA
      ttrumble@naca.com

  12. DMMDNEWHOME
    Posted July 13, 2019 at 7:40 am | Permalink

    I have a question regarding theis BOA grant and MSA . I am trying to buy a new construction in Upper Marlboro, Maryland 20772. I am Not sure how to read the qualifying MSA site for this grant’s eligibility . I am also getting confused reviewing the qualifying MSA list. I see DC/MS/VA/WV under Washington- but i am now not sure its encompassing all of the DMV? Can you please assist? I want to get an idea if I qualify for this Grant.

    Thank you

    • Posted July 14, 2019 at 9:59 am | Permalink

      Hello DMMDNEWHOME,

      My guess is that what is leading to your confusion is that you are focusing on the “DMV”, which is not in any way a legally defined or specified area. It’s simply a reference that people have created for Washington and the surrounding environs. There is no official metro area that matches the DMV designation. You should probably learn to think in terms of the MSA (Metropolitan Statistical Area) instead. You will find maps defining the exact boundaries of any given MSA at the FFIEC website, http://www.ffiec.gov.

      Tim Trumble
      Online Operations, NACA
      ttrumble@naca.com

      • DMMDNEWHOME
        Posted July 14, 2019 at 12:00 pm | Permalink

        Thank you. I believe i found a neighboring address and the MSA/MD Name is listed Washington- Arlington-Alexandria. Thank you for providing the link and clarity on the MSA.

  13. Jenny
    Posted July 15, 2019 at 5:50 pm | Permalink

    Hi, I currently bank with BofA. Will this program become available in Oakland, CA?

    • Posted August 1, 2019 at 11:57 am | Permalink

      Hello Jenny,

      We will not know for certain until the new list is issued by the FFIEC this fall, but it is unlikely Oakland will be added to the list anytime soon.

      Tim Trumble
      Online Operations, NACA
      ttrumble@naca.com

  14. MsSRivers
    Posted July 29, 2019 at 10:35 pm | Permalink

    When looking at the FFEIC chart am I comparing my income to the Median Family Income of $78,000 or The Tract Median Family Income of 108,202? I am looking at a home in Westchester, NY.

    Tract Income Level Upper
    Underserved or Distressed Tract No
    2018 FFIEC Estimated MSA/MD/non-MSA/MD Median Family Income $78,000
    2018 Estimated Tract Median Family Income $108,202
    2015 Tract Median Family Income $99,950
    Tract Median Family Income % 138.72
    Tract Population 5795
    Tract Minority % 49.96
    Tract Minority Population 2895
    Owner-Occupied Units 1587
    1- to 4- Family Units 1447

    • Posted August 1, 2019 at 12:05 pm | Permalink

      Hello MsSRivers,

      Qualification for the BOA grant is based on your household income compared to the median income figure for the Metropolitan Statistical Area (MSA), which in the scenario described above is $78,000.

      Tim Trumble
      Online Operations, NACA
      ttrumble@naca.com

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