BOA Home Grant Program

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  • #65780
    FLCarolina
    Participant

    I am in the home stretch to my closing and am beyond grateful for the NACA program! I am getting conflicting information about the BOA grant program and wanted to verify the program information personally. Does anyone have a link to the BOA grant program or a person who can help me understand the requirements for the grant program?

    I live in Saint Lucie County in Florida, my income is below 80% MSA, and I am a priority NACA member. The America’s Home Grant® program (Bank of America) listed on BOA website at URL https://mortgage.bankofamerica.com/mortgage-down-payment-center seems like a great match for me and would be very helpful for my situation if I qualify.

    How do I know if I am able to receive this grant or any other grant program that may be available?

    #65781
    Nelsont
    Member

    If you are below 80% then boa automatically gifts you 0.5% rate reduction in some MSAs. Since January it’s only been a select few MSAs I believe. Pretty much only your MC and local office will know. If you are in one of these areas you I don’t think you can piggyback another boa grant. It’s either one or the other or you don’t have a choice you’re getting the rate reduction and that’s it. I don’t know which of the 2 scenarios applies though as I mentioned it seems to be on a per MSA basis defined by boa.

    If you were looking at grants to begin with and they are not tied directly to the naca program then they should have been applied for and taken into account during or prior to credit access. Once you get to the bank app stage boa underwrites and works the numbers as a final offer. In order to add any grants or additional funding that was not communicated to them at receipt of the bank app would require them to start the process over I believe.

    I don’t mean to sound like a negative Nancy but the full funding picture is really something that needs to be figured out or at least in the process when you make the offer.

    #65786
    FLCarolina
    Participant

    Thank you Nelsont for your insight. I am aware of the grant process outside of NACA and researched those early on. I was not aware of the BOA grant and don’t find information about it online which is probably why.

    In any case, my MC is incredibly busy and there have been three back to back ATD events in my area which in effect closed the local office for days each week. I was not told about the grant until 4 days ago which is why I want to research it.

    When you say the BOA grant is automatically gifted what do you mean exactly? When do I see it? In the Closing Disclosure as buydown or at Bank Application as a reduction in interest?

    Thanks for your help!

    #65787
    Nelsont
    Member

    Well. In 2019 BOA automatically gifted members under 80% a free 1% interest rate reduction. This would be shown on your final closing disclosure as rate reduction to answer your question. In 2018 though citi unexpectedly exited the mortgage lending industry dumping all of their naca clients onto BOA which caused BOA to run out of 2019 allocated naca funds by August. That is when they cancelled the lender match and rate reduction programs. Naca quickly stepped in and forced BOA to compromise on a 0.5% rate reduction for members under 80%.

    In 2020, there has been very little information and pretty much the only things we as forum members know are what people in random cities have mentioned. What I have gathered is the program only seems to be effective in large MSA’s with large populations of low income families. I believe neither of the Carolinas fit the bill and in Florida it would be (IF MY HUNCH IS CORRECT) only Miami.

    Some cities have the rate reduction. Some cities have a buy down cap. I do not know if there is a lender match any more. I wish I could be of more help.

    #65835
    Peapod0609
    Member

    For me I didn’t “see it” anywhere, it just showed up as a lower interest rate. I closed back in November with NACA. Like, there was nowhere on any disclosure that said “Bank of america Grant” or anything like that at all. I just knew I got it because of the math.

    The regular 30 year NACA rate when I went under contract was 3.375% and we bought down the interest rate with 5% of seller contribution. Each 1% equates to 0.25% off the rate, so we got 1.25% less in interest due to the buydown.
    So my interest rate should have been 3.375-1.25 which should have been 2.125%, right? Well, on the bank app it said 1.625% and that was the rate I got. I even confirmed with our MC that we got the grant, and he said yes. So, clearly we got the additional 0.50% off as 2.125% minus the 0.50% is indeed 1.625%.

    So in short, I don’t think it will show up anywhere in any of the disclosures. But doing simple math will let you know if you get it or not. At this point you should know if you got it or not if you’re near closing, your final interest rate shows up on your bank app, and should properly show up on the disclosures, now.

    #65845

    According to my MC this program was supposed to end on Dec. 31, but it is still being given, and they’re not really sure to who or where until they get the final numbers back. It’s not great having such uncertainty, but it seems no one at NACA has a solid answer. I hope everyone who needs it gets it (but also hope somehow we don’t, because we’ll save a lot of money by not having it and buying down lower.)

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