January 21, 2020 at 3:02 pm #64902frankysmomMember
I asked at the purchase workshop and was told, priority members can buy down to .125 and non priority members can only buy down to 1.25March 17, 2020 at 6:43 am #66304AlexParticipant
Has anyone else been able to confirm nonpriority members being able to buy down all the way down to 1.25?March 17, 2020 at 8:23 am #66305NelsontMember
I do believe non-priority members were never able to buy down more than 5.5? effective points? The Federal Government I think limits non priority members and adds a fee which is where the half point comes in.March 17, 2020 at 3:55 pm #66312TheLongJourneyHomeParticipant
FYI, I was told loan limits have not changed by my NACA counselor (feb 27th). They are going by the 2019 limits still which are the ones listed on the website (414kish/725kish)March 19, 2020 at 11:52 am #66386TTrumbleMember
For the time being, non-priority members are limited by the HOEPA restriction of a maximum total buy down from all sources of five points. On a 30-year loan, this reduces the interest rate by 1.25% and for a 15-year loan the reduction is 2.5% (based on today’s rates of 3.125% for a 30-year and 2.75% for a 15-year). Therefore, a non-priority member can go as low as 1.875% on a 30-year and 0.25% on a 15-year.
A priority member making less than 80% of the median income for their Metropolitan Statistical Area (MSA) receives and additional 1% rate reduction from BOA, so the 30-year can go to 0.875% and the 15-year can reach the lowest possible rate of 0.125% using just three and one quarter points of buy down.
There’s no word on what new programs may be on the horizon, so please consider the above the status quo.March 19, 2020 at 1:45 pm #66395purdynerdyParticipant
Am I understanding this correctly?
Priority members making less than 80% of median income for their MSA receives a 1% rate reduction from BOA. Not 0.5% rate reduction? Is this automatic?
Thanks!March 19, 2020 at 1:51 pm #66396frankysmomMember
It would be amazing if the 1% reduction made a return even though .5% is still very good!March 19, 2020 at 5:45 pm #66403dmesauMember
I wonder if the 1% will apply to those that have are under contract and have signed bank application. Since when did this 1% change from .5%?March 19, 2020 at 7:12 pm #66405BakerTheBakerMember
@dmesau If you did your bank application, whatever it said on there is the rate you are getting. It wouldn’t be noted as a special rate, but it would show as a lower rate than you expected.March 19, 2020 at 8:48 pm #66410NelsontMember
Up until 2018 naca contracted with citi and boa. Then Citi exited the mortgage lending industry entirely and unexpectedly dumped all naca clients on boa. This caused boa to run out of naca funding in August 2019 which is when the 1% switched to 0.5%. At first they canceled it altogether then naca quickly flexed their muscles. The 0.5% is a compromise and it’s been that way for 6 months.March 19, 2020 at 9:11 pm #66411
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