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 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 and by area at . 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:






















































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  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

    • stellanooga2020
      Posted June 18, 2020 at 3:49 pm | Permalink


      Is this BOA grant program still open and available? We’re hoping to be NACA-qualified soon and would like to take advantage of this program.

  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

      • 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

          Tim Trumble
          Online Operations, NACA

  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

      • 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

  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 ,

  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”


    • 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

  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

  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

  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

      • 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

      • 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

  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

    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,

      Tim Trumble
      Online Operations, NACA

        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

  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

  15. Zb
    Posted August 16, 2019 at 8:46 pm | Permalink

    If I weren’t to use this and I wanted to buy my rate all the way down to zero will I get any assistance from the bank?

    • Posted September 5, 2019 at 9:12 pm | Permalink

      Hello Zb,

      That’s actually a much broader question than you probably think. While there are a number of homebuyer assistance programs out there, none of them can match the NACA Purchase Program. With no down payment, no closing costs, no PMI, a fixed below-market interest rate that can be bought down as you noted and no use of your credit score, no other program can match the terms provided by NACA.

      Tim Trumble
      Online Operations, NACA

  16. Ronda
    Posted August 19, 2019 at 1:48 pm | Permalink

    Is Charlotte/Concord NC in the qualifying area for the BOA grant?

    • Posted September 5, 2019 at 9:05 pm | Permalink

      Hello Ronda,

      Yes, the Charlotte MSA does qualify for the 1% reduction program.

      Tim Trumble
      Online Operations, NACA

  17. Karen
    Posted August 20, 2019 at 2:19 pm | Permalink

    Does the new BoA reduced interest rate grant also apply if you want a 15-year versus a 30-year mortgage, and if so, what would that new 15-year reduced rate be? I was just qualified at the NACA, “SHARE THE DREAM” event in Baltimore on Aug. 9, 2019., and have already contracted for a new construction home in B-More scheduled to close at the end of Nov-early Dec 2019. My NACA qualification purchase level is half of the purchase price so I am eager to receive whatever reduced automatic rate I can receive, as well as buy-down options (and additional down payment, as may be required), in order to move into the DREAM CONDO, thus fulfilling on NACA’s DREAM!

    • Posted September 5, 2019 at 8:58 pm | Permalink

      Hello Karen,

      All of the interest rate reduction programs apply to both the 30-year and 15-year loans. The only difference is that one point (one percent of the loan amount) buys down the rate by one-quarter percent for a 30-year loan and one-half percent for a 15-year loan.

      Tim Trumble
      Online Operations, NACA

  18. RichStalwart15
    Posted August 26, 2019 at 2:08 pm | Permalink


    How do you know if funds are still available for your region?

    I am in the WASHINGTON-ARLINGTON-ALEXANDRIA DC/VA/MD/WV. I am currently under contract and was initially given the grant because I am at 78% of the median income. I am going to Bank Submission and my counselor says that funds may have potentially run out. This greatly impacts the affordability of the home. I am looking at a rate of 3.125 instead of 2.125. My Monthly payment went from $2114 to $2360. I already paid for an inspection and could potentially lose my EMD of $3k and inspection of $500 if I cant manage to get the payment down. I really prefer not to through all of my savings to buy the rate down. Is there any other grants or anyone i can speak to regarding the BOA grant, my counselor hasn’t been able to provide me with any information and most offices that i have spoken to have no idea.

  19. Rafael
    Posted September 4, 2019 at 2:32 pm | Permalink

    I am in the CHICAGO-NAPERVILLE-ARLINGTON HEIGHTS IL area. I am under contract and was initially given the grant but now that I have the loan commitment from the bank, they are not giving me the grant. My counselor says that funds may have run out. This will greatly affect the affordability of my loan.

    Can you confirm if this grant is still available in the CHICAGO-NAPERVILLE-ARLINGTON HEIGHTS IL area? Or if there is any other similar grant? Time is of the essence since I already received the loan commitment from the bank.

    Thank you,

    • Posted September 5, 2019 at 8:47 pm | Permalink

      Hello Rafael,

      The funds Bank of America committed to the matching grants program have temporarily run out. They had allocated a given amount of money through the end of 2019, but the program has been so popular that the funds ran out four months earlier than planned.

      Bruce Marks is in negotiations with BOA to get things restarted, hopefully with additional funds to keep things going through the rest of the year. We had hoped to have an answer this week, but that may not happen now.

      For the moment the best thing you can do is hang on and have faith that things will get back on track within the next few business days.

      Tim Trumble
      Online Operations, NACA

  20. Tdesiree
    Posted September 17, 2019 at 9:23 pm | Permalink

    Evening TTrumble, Hope all is well ? I am inquiring about the BOA lenders match in Atlanta. I don’t see Atlanta on the list or maybe I’m reading it wrong, I live in Marietta, GA (Cobb county) and wanted to take advantage of the lenders match. As well as does Citibank have a lenders match? One last question I can’t figure out if I’m part of the of the MSA with a 1 person annual income of $50k. I appreciate your assistance. Thank you.

    • Posted September 18, 2019 at 1:09 pm | Permalink

      Hello Tdesiree,

      I’m afraid you are reading the list correctly. The Savannah MSA is the only one in GA that qualifies for the program.

      For those who have not heard yet, BOA has reinstated the grant for the remainder of 2019 after the funds initially ran out, however it is at a one-half percent rate reduction instead of a full one percent.

      Also, Citi has exited the mortgage servicing business completely and ended their agreement with NACA almost a year ago.

      Tim Trumble
      Online Operations, NACA

  21. Tes
    Posted October 24, 2019 at 9:48 pm | Permalink

    Has BOA to come with additional funds for the 1% rate reduction grant program for the rest of 2019.

    • Posted October 24, 2019 at 10:14 pm | Permalink

      Hello Tes,

      No, I’m afraid things are going to stay where they are for the remainder of the year. Mr. Marks is in negotiations with BOA to put together a better program for next year that hopefully won’t run out of funding three months sooner than expected as happened this year.

      Tim Trumble
      Online Operations, NACA

  22. Red
    Posted November 22, 2019 at 12:12 pm | Permalink

    Hello. still the 1% matching Grant from Bank of America Exhausted?

    • Posted November 22, 2019 at 1:38 pm | Permalink

      Hello Red,

      At present members who are below 80% of the median household income for their area receive an automatic one-half percent rate reduction. We will release information regarding any new programs that become available as soon as information becomes available.

      Tim Trumble
      Online Operations, NACA

      • Ken Shultz
        Posted January 27, 2020 at 9:22 pm | Permalink

        Is this still true? Half percent off 3.00%, which is today’s rate on So, that would bring it down to 2.5%?

        • Ken Shultz
          Posted January 27, 2020 at 9:24 pm | Permalink

          For 80% or below msa median income I mean?

          • Posted February 7, 2020 at 11:57 am | Permalink

            Hello Ken Schultz,

            At the present time, NACA members with an income below 80% of that for the MSA (Metropolitan Statistical Area) in which they live receive an automatic 0.5% interest rate reduction from Bank of America. This program went into effect after our matching grants program with BOA ran out of funding four months earlier than planned.

            Bruce Marks is negotiating with BOA to create a new program that will hopefully provide even more benefits to NACA members, but until the agreement is reached and announced, the 0.5% reduction is still a powerful tool for many NACA members.

            Tim Trumble
            Online Operations, NACA

          • Luma
            Posted March 19, 2020 at 6:30 pm | Permalink


            I received my BOA loan estimate but the discount is not there neither on the interest rate lock in agreement. Should I been concern? This is something that happens later or should I contact my new MC?

            Thank you

          • Posted March 19, 2020 at 6:37 pm | Permalink

            Hello Luma,

            The Loan Estimate will only show the base interest rate, not any discounts or buy down. This is, as the name indicates, just the initial estimate of the loan terms using the current program rate and other base information. Any changes beyond that will show up later in your Loan Application and Closing Disclosures statement.

            Tim Trumble
            Online Operations, NACA

            P.S. Please only post your question to the site once. Thanks!

  23. Ken Shultz
    Posted February 25, 2020 at 2:14 pm | Permalink

    Great, thank you Tim!

    • Srich28
      Posted April 7, 2020 at 6:39 pm | Permalink

      Just to double check, does the .5% reduction rate still apply (given that income is below 80% median for MSA)? I am preparing to make an offer on a home and just want to be sure.
      Thank you,

      • Posted April 8, 2020 at 9:51 am | Permalink

        Hello Srich28,

        Yes, the rate reduction does still apply.

        Tim Trumble
        Online Operations, NACA

        • Srich28
          Posted May 1, 2020 at 12:09 pm | Permalink

          I have another question. What is the income based on? Is it tax returns or current pay stubs that we are submitting? I

  24. Posted May 1, 2020 at 3:22 pm | Permalink

    Hello Srich28,

    Both actually come into play. The initial income calculation is based on your most recent paystubs, but the tax returns, W2’s and tax transcripts are used to show consistency of that income.

    Tim Trumble
    Online Operations, NACA

  25. Alain Joseph
    Posted May 11, 2020 at 10:24 pm | Permalink

    Hello, is anyone aware of any grants that are available in the Tampa Bay/Riverview Area that are NACA compatible

    • Posted May 13, 2020 at 11:12 am | Permalink

      Hello Alain Joseph,

      Your local NACA office in Tampa should be able to give you information on local grant programs. You may also want to inquire with any professional, civic or fraternal organizations to which you belong.

      Tim Trumble
      Online Operations, NACA

  26. Melissa
    Posted May 19, 2020 at 9:27 am | Permalink

    Is this available for Chattanooga, TN?? And if so, what do I need to do on my side? I saw Chattanooga on one of the lists, but not the main one. Thank you so much!

    • Posted May 19, 2020 at 1:03 pm | Permalink

      Hello Melissa,

      We are able to work with homebuyers anywhere in Tennessee even though our only office there is in Memphis. The necessary workshops are now all online as webinars and you can do your counseling session by video chat. Your best bet is to attend one of our Homebuyer’s Workshops as soon as possible and at least start the process through our online Achieve the Dream Events, which are going on every Thursday through Sunday each week for the next few weeks.

      Tim Trumble
      Online Operations, NACA

  27. Posted June 1, 2020 at 4:38 am | Permalink

    I been waiting to see if eligible for a house and I haven’t seen now yet

    • Posted June 3, 2020 at 5:56 pm | Permalink

      Hello Sandy W Sandy Blue,

      Keep working with your counselor to get the latest updates and find out if there are any actions you need to take to complete the qualification process.

      Tim Trumble
      Online Operations, NACA

  28. Latasha Baker
    Posted June 15, 2020 at 9:13 pm | Permalink

    Is this grant still being offered?

  29. Rolande
    Posted June 17, 2020 at 3:48 pm | Permalink

    Hello Tim,
    I have been qualified in Maryland an looking to purchase theses days.
    Please do you know if the Bank of America grant is still available? or any other grants?
    Thank you

    • Posted June 18, 2020 at 10:33 am | Permalink

      Hello rolande,

      The program still exists, but there have been a couple of modifications. Members who have a household income below 80% of the median income for their MSA receive a on-half percent interest rate reduction, not a full percent. Additionally those same members are eligible for up to a ten percent seller contribution toward buy down on top of their own maximum five point contribution.

      Tim Trumble
      Online Operations, NACA

      • Rolande
        Posted June 19, 2020 at 10:42 am | Permalink

        Thank you Tim.

      • Tiffany S
        Posted June 26, 2020 at 4:19 pm | Permalink

        Thank you for clarity. I’m planning to buy down my interest rate by 10 points, which 4 are coming from the seller. My MC is saying I need to apply for the grant with Boa but I can’t find where I would apply because we can’t apply directly with boa. Please help direct me where to apply or if this is automatic when my loan app is submitted. I’m at the stage of submission and really need to understand this process.

        • Posted June 30, 2020 at 9:50 am | Permalink

          Hello Tiffany S,

          Under the Home Owners Equity Protection Act (HOEPA), you may personally buy down a maximum of five points toward buydown, reducing the rate 1.25% on a 30 year loan and 2.5% on a 15 year loan. BOA will further reduce your rate by 0.5% if you qualify. The seller may contribute up to ten points, reducing the rate up to 2.5% for a 30 year and 5.0% for a 15 year.

          Tim Trumble
          Online Operations, NACA

      • Tiffany S
        Posted June 26, 2020 at 4:26 pm | Permalink

        I forgot to ask if boa cuts interest rate at .5 of %. Seller given 4 points, will I be allowed to contribute 5.5 points to buy down for a total of 10, which i will need to stay within my PITI. I have the money saved and just really trying to understand whats acceptable or not. During our purchase workshop we were told that we can buy down as low as 0.125.

        • Posted June 30, 2020 at 9:45 am | Permalink

          Hello Tiffany S,

          The BOA 0.5% interest rate reduction is automatic for those who qualify.

          Tim Trumble
          Online Operations, NACA

  30. Whit
    Posted July 11, 2020 at 3:11 pm | Permalink

    Hi Tim,

    Does the Raleigh,NC area qualify for the .5% rate reduction? If so, i understand that this will automatically be done and I dont need to request it, correct?

    • Posted July 13, 2020 at 4:56 pm | Permalink

      Hello Whit,

      Unfortunately, the Raleigh-Durham-Chapel Hill MSA does not qualify for the half-percent rate reduction from BOA.

      Tim Trumble
      Online Operations, NACA

  31. Amber
    Posted July 27, 2020 at 2:51 pm | Permalink


    This thread is helpful. I currently fall below 80% of the MSA and am looking to buy units. Will the new income from the units be considered as income? I am afraid this will push me above the 80% therefore loosing the grant benefits.

    Thank you.

    • Posted July 28, 2020 at 10:43 am | Permalink

      Hello Amber,

      The rental income derived from buying a multifamily property is considered differently than your regular income and therefore not considered in your personal income as far as priority status is concerned. For the purpose of affordability, 75% of the projected rental income is applied toward affordability of the monthly mortgage payment.

      Tim Trumble
      Online Operations, NACA

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