BOA and Michigan Grants

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  • #71465
    LindaD87
    Participant

    Hi,

    Are we able to use Bank of America home grant programs? Is anyone aware of Michigan grants or funding for someone above MSA? Thanks in advance.

    #71466
    Nelsont
    Member

    The criteria for any grant to work with naca is:

    Cannot be required to use for closing costs
    Must be able to be used 100% for down payment
    Cannot be a forgivable loan
    Cannot have a length of stay or repayment penalty
    Must be considered a gift
    Must be able to work with BOA as your lender
    Cannot work with other approved or preferred lenders

    BOA has 2 home grants. 1 for 7500 and 1 for 10000. The 7500 grant is for closing costs so that is automatically eliminated. The 10000 grant depends on your county. Each county that it is available in (and it’s not available in every county not even in every state) has their own criteria and guidelines for how the grant is applied. It’s been my experience that while similar even neighboring counties within the same MSA will have completely different guidelines as to whether some or all of the grant can or cannot be applied to closing costs if you have to buy in certain zip code if there are penalties etc.

    But the ability to buy your interest down counteract acts the scarcity of available grants. Remember you can buy down 5 points yourself and your seller can contribute up to an additional 10 points. And if your income is below 80% of your MSA median income and you are lucky enough to buying in one of BOA’s “test markets” you get an extra 0.5% rate reduction automatically.

    It is very very common for sellers to contribute whether you are with naca or not. So let’s take the 10000 grant. If a seller contributes 5% on a 250k house that’s already 12500 which is better than the grant. They do not actually put the money up. It is simply subtracted from the amount owed to them after the sale.

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