2019 MSA Numbers & Qualification

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  • #58901

    I saw that the new MSA numbers are finally published. We had planned to close before 2020, but it may end up being January 2020 after all. A couple of questions I haven’t been able to divine the answers for:

    1) Do the new MSA numbers get used for qualification as soon as they are out? When we went to ATD they used 2018 numbers. Or do the 2019 numbers not get used until 2020? They went up in our MSA, so it’s fine either way, but relevant to my next question…

    2) The number that was used to determine if we were under 80% of our MSA was not our total annual gross income, as I would have expected. It seemed to come from my Social Security/Medicare Wage total – ie Gross, less my FSA and such but not my 401k. Can anyone tell me exactly which number is used?

    3) Assuming we close in January 2020, what number would be used to calculate eligibility? I assume still the information from the 2018 W2 since we’ll have submitted for the loan before the end of 2019, and new W2s for 2019 won’t be available yet.

    We’ve got so many moving parts I am really trying to get a handle on this before our next meeting – which isn’t until October now, and that’s basically when we’d like to be ready to submit everything and should have met all of the requirements.

    #58904

    Can someone help me I am in the mortgage process step I had one lender condition which my MC had to address for change of circumstance and it’s been since Monday then she called me to get the insurance agency to send the declaration page over and that was sent and it was uploaded but I haven’t heard anything yet. Can someone tell me what’s the next step???? No lender conditions on my webfile or anything.

    #58905
    Nelsont
    Member

    Which ATD did you go to? I believe the numbers are used when available however the numbers were posted mid-late August. There were a few ATD events just prior to the 2019 numbers being available. Along those lines though no numbers are set in stone until you get the keys to your house. If you have’t put in an offer yet then 2019 numbers will be used once you do. Even so any number of factors can change mid contract in which case a re-review of your file will need to be performed if that’s the case.

    Your FSA/HSA count against your total income. The reason is because they are pre-tax dollars. Any amount you contribute to your health accounts come out of your check as “pre-tax” which means you are taxed on the lower amount. So if you contribute $3000/year to your HSA/FSA then you will taxed by the IRS at the rate of total income minus $3000.

    Your 401k is also pre-tax but it is considered a savings account and your money to be used for whatever you want (technically) so that is not deducted from your gross income but rather included.

    Not sure I understand what you mean eligibility here. W2 does not determine eligibility. Current income does. W2 and tax returns are only to verify your employment and income are stable and match your pay stubs. Case in point: I got a new job 2 weeks before my first intake session and was immediately on the track for qualification at the new higher income level.

    Have you volunteered once or twice? You will need to do that before closing. Realistically if you want to close in January you need to have a house picked out by the time you go for your appointment in October. Plan 2 months from contract to close.

    I hope I don’t sound like a debbie downer I just want to make sure everybody is as prepared as possible.

    #58911

    Thanks, @nelsont!

    You actually answered my question about which income numbers are used perfectly in terms of the HSA vs. 401k. Given that my income isn’t perfectly steady – I work on commission – how could my current numbers be used to create an annual income? When we went to ATD it was definitely before the new numbers were out, and he definitely used our W2 totals to check for the 80% threshold.

    In terms of the house, we’re buying new construction, so we’re 100% with everything except the final NACA qualification process, which we should be able to start in October and be finished with as soon as NACA can get it done basically.

    #58914
    Nelsont
    Member

    That’s an interesting question and the answer will be unique to your situation. Often commission based jobs are not 100% commission and indeed have a base salary. If this is you I think you might get qualified for your base salary and your commission can only be used to count toward MRF and buy down funds but not toward piti. Unless maybe you have contracted customers more or less guaranteeing commission. If that’s the case or if you really do work on 100% comission then I think they would need to see 2 years of stable income at that level.

    #58919
    TTrumble
    Member

    Hello BakerTheBaker,

    The updated MSA numbers are used as soon as they are issued by the FFIEC (and we get them entered into the NACA-Lynx system).

    Regarding your income being partially commission-based, employees who earn commissions (or tips) in addition to a regular salary must demonstrate that this is a regular part of their earnings and need to have at least a one-year history with the current employer. This is to document current rate of pay and to average the commission potential. Commission will be counted based on the last year’s reported W-2 earnings minus the current year’s base income and a 12-month commission average is calculated. The most recent YTD pay is reviewed to determine if the commission earning in the current year will be consistent with the commission earned in the previous year. The VOE (Verification of Employment) must state that commission income is likely to continue.

    Tim Trumble
    Online Operations, NACA
    ttrumble@naca.com

    #58920
    TTrumble
    Member

    Hello camaria@rebuilt,

    First thing for you to do is call NACA Member Services at 425-602-6222 and make sure the declarations page made it into your file. The Member Services rep can then contact your counselor with a reminder that the document is there and the file needs his or her attention.

    If your counselor happens to be at the Chicago ATD event, it may be next Tuesday or Wednesday before the counselor can do the review, so be prepared to have a little patience and things should be taken care of then.

    Tim Trumble
    Online Operations, NACA
    ttrumble@naca.com

    #58943

    @ttrumble they told me that the declarations page was received and uploaded to my file but I still haven’t heard anything at all. This was a couple days ago now. So once it uploaded what am I waiting on then? My web file just says on my end that I’m in mortgage process.

    #58945
    Nelsont
    Member

    Have you called your MC or your local office or the mortgage processing center?

    #58946

    Yes I have called my MC but she haven’t told me anything, what’s the mortgage processing center? what the telephone number?

    #58947
    Nelsont
    Member

    I am not sure. This is something that just started in August.

    You will not hear back immediately. They usually respond pretty quickly BUT the underwriters do not respond directly to you or your webfile. Your webfile is manually updated by your MC. This is the start of the ATD event in Chicago so many of the NACA employees across the country are there until Tuesday. They do not have access to emails or phone while they are there. If whoever is handling your file at point in the process is in Chicago it may be the middle of next week before you hear anything. Just keep calling.

    #59741

    Hello @nelsont have you ever heard of the bank working with vendors to clear internal issues. Its says ACA (all conditions addressed)-BAC Follow Up NACA has addressed all outstanding conditions. I am very confused, I am suppose to close this week and i can’t get in contact with my counselor and mortgage processing is always busy so it send me to member services which they always say they can’t help me either call mortgage processing back or they will leave a message for my MC. And I haven’t heard anything from her I also cc her manager. Nothing Yet I am getting nervous.

    #59742
    Nelsont
    Member

    I have not heard. BAC? Before all clear? Idk.

    What I do know is you will not get any communication unless there is actually something to communicate. You will only be made aware of an issue or an approval. In my case everything was last minute. I did not receive my closing disclosure until the day I was supposed to close originally and I did not receive my CTC and final CD until about 12 hours before I closed. My final CTC came about 30 minutes later.

    #59743
    tlaster79
    Member

    @camaria@rebuilt

    I am going through somewhat of the same thing but I was able to find out the status through Member services because my webfile hadn’t been updated yet. I had to call all day to get some info.

    #59744
    tlaster79
    Member

    @Nelsont

    How long it take to close? It’s been almost 50 days for me.

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