November 3, 2012 at 7:00 am #4035jhattParticipant
can someone please tell me why it is required by NACA to keep a certain level of funds prior to closing within your bank accounts that are well over and beyond your minimum required funds? For example, if someone had $20,000 in their checking and savings accounts while being NACA qualified – once you are “qualified” NACA wants you to keep the $20,000 balance- even if your MRF are $5,000.
I’m a little surprised by this- since basically that means that if you have an unexpected car expense, hospital bill, etc- how would you pay for it?
I honestly was not aware they would do this type of “snapshot” on your accounts and wasn’t planning on not being able to spend any of the money i have saved that is not required for MRF.November 3, 2012 at 11:54 am #4037TTrumbleMember
The reason the total balance must remain the same or increase before closing is that if should the balance decrease, you are in fact spending more than you are taking in and thus not actually saving the MRF and Payment Shock. At best you are just moving funds from one account to another. Should there be an genuine emergency expense, then a Letter of Explanation and copies of the relevant bills can usually suffice in justifying the expense as long as your MRF and Payment Shock continue to be maintained. Otherwise you must show an increase in total “cash assets”, not just an increase in the balance of one specific account.
Online Operations, NACA
firstname.lastname@example.orgNovember 9, 2012 at 2:28 am #4154readytobuyParticipant
I was just approved, and I was looking at my approval letter, and it said that I have to maintain my total bank balances each month from what they were when I started NACA.
I have two accounts, a personal, and a business account. When I started NACA, I had about 10,000 in my personal and about 30,000 in my business account.
I went through the whole qualification process, and completed the self employment worksheet, which is averaged based on 12 months. Business income-business expenses = income. My income came out to around 7,000 per month.
My total yearly deposits were somewhere in the 300,000 dollar range, and the expenses were a little over 200,000. Each month income and expenses are quite different.
I would think that this is the reason for the self employment worksheet, in order to average the entire year.
Here is an example: One month I might have five jobs closing and I collect 40,000 dollars and then the next month only one job closes and I collect 5,000. It is constantly changing.
I can easily maintain my personal account, but my business funds are for business, and need to be spent on business expenses.
Will this effect my final approval. I am very concerned, as we have worked so very hard to get to this point, and are ready to be homeowners.
Thanks!November 9, 2012 at 11:20 am #4167TTrumbleMember
Please refer to my response to your other post of the same message. For future reference, it is only necessary to post a message once in the Forum. With the exception of the Information Technology forum, I review each forum several times each day.
Online Operations, NACA
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