Buydown/Rate Reduction – MC Giving Different INformation/Not Answering

Home Forums Purchase Program Buydown/Rate Reduction – MC Giving Different INformation/Not Answering

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    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.


    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.


    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.


    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.


    Interesting. If you get any more details please share.


    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.


    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?

    • 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.


    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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