January 28, 2020 at 9:22 am #65076
I have been trying now for a week to get my MC to confirm information about the current restrictions for buying down interest rates. He told me there were no restrictions in place, but hasn’t answered when I specifically asked about rate reductions/grants/etc. I am assuming I haven’t missed any big announcements here, but I also don’t understand why my MC would have such different information than what we have here. This makes a huge difference in our purchase – especially with the rate being so low right now! I’m getting the office manager involved, but I am starting to wonder how I can trust information I’m getting.January 28, 2020 at 9:33 am #65077NelsontMember
So I have not seen any news. I have heard on here about a positive change to the restrictions. I am also assuming your MC is not going give you any back story so let’s say the restrictions have been removed I think they will just say no restrictions as opposed to telling you what you can do now compared to what you used to be able to.January 28, 2020 at 9:42 am #65078
I am skeptical of his answers because the first time I asked he just copied and pasted a completely irrelevant part of the handbook as his reply. I was told he’s great – the guy who got us qualified was a trainee and now we’re working with his trainer I guess – but so far I am super nervous now.January 28, 2020 at 10:26 am #65079
The office manager emailed me back promptly, and seems to know what I’m asking. That’s a good sign. Apparently the interest rate reduction is based on both income and geography which may be the cause of some confusion.January 28, 2020 at 10:34 am #65080NelsontMember
Interesting. If you get any more details please share.January 28, 2020 at 10:54 am #65081
The Office Director was able to confirm the following for me:
* The 0.5% Rate Reduction is in effect in specific areas for Members below the 80% MSA threshold.
* If you qualify for the Rate Reduction, you are limited to 5 points in buydown from all sources combined.
* Qualification for the Rate Reduction seems to be based geographically on specific tracts as she said she needed a particular address to know for sure, but income qualification is based on the MSA.January 28, 2020 at 10:21 pm #65099msob24Member
Thanks for the update @BakerTheBaker but can you offer a bit more clarification? Is there any limit on how much you can buy down your rate if you’re over 80% in a given MSA? Is there an option to refuse the .5% rate reduction to allow you to buy down more than a total of 5 points?
January 28, 2020 at 11:08 pm #65101
- This reply was modified 8 months, 3 weeks ago by msob24.
There is no option to refuse. I do not know what the options are if you are over 80% or your area does not qualify.January 29, 2020 at 2:19 pm #65143LMAmaroMember
I’m confused. I wonder if the limit of 5 points is only in certain areas. I just talked to my MC within the last week and they told me that I did not have a limit on how low I could buy down the interest rate. It would simply depend on how much I could afford. I figured that they probably knew something about the NACA and BOA negotiations that we didn’t know just yet.
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