BOA lender match

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  • #47806
    Jayne
    Member

    A bit confused. Does the max of 7 points HAVE to be from your own funds? Or can it be combined with seller contribution. Im hoping to find this information out at the purchase workshop as well but before I start my journey into looking for homes, Im pretty much depending on the bank match to up my purchase price. Ive saved to contribute the maximum points and to reduce the principal and get my rate the lowest possible, but I had in the back of my mind seller contribution would be great as well if it happens. But in a few of the posts ive come across it says the bank match is only possible if the 7% is from your OWN funds. Any clarity on this topic would be great.
    Thanks

    #47813
    TTrumble
    Member

    Hello Jayne,

    The buyer’s contribution is completely separate from the seller’s. They buyer may contribute up to seven points, but the seller may contribute up to ten points that are (by law) entirely separate from the buyer’s funds.

    Please be aware though that any funds you receive from a grant program or any gift funds are considered part of your funds and are subject to the seven point cap. Any funds you contribute beyond seven points will go to reduce the principal of the loan.

    If your income is below the median income for your area, the bank will match the amount that is over the seven percent cap and also use it to continue to buy down the interest rate.

    Tim Trumble
    Online Operations, NACA
    ttrumble@naca.com

    #47854
    Jsophus
    Member

    Is the lender match automatic for anything that I the buyer would contribute after the 7 points? Or is it just a case by case deal?

    #47886
    southflorida
    Member

    it’s automatic if you are a Priority Member

    #47897
    Jsophus
    Member

    Thank you @southflorida

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