Conflicting Info on 0.5% Buydown “Grant” and Timing

Home Forums Purchase Program Conflicting Info on 0.5% Buydown “Grant” and Timing

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  • #64312

    Now that we’re Qualified, my questions on this are more specific and more in earnest.

    First and foremost, I have heard both that the 0.5% rate reduction for Priority members ended if you weren’t under contract before 01/01/2020, and I have heard it is still in force. Does anyone have a definitive answer?

    Second, I understand that our interest rate locks when we move to Credit Access. If a grant program is announced after that point, but before we close, will we be able to take advantage of the new program?

    #64315
    Nelsont
    Member

    I can’t answer #1. For #2 you should be fine. I would imagine the issue arises if you plan to buy down 3 points and now all of sudden with the grant you are buying down 5 points, the bank and the UW now have to rerun the numbers. But if you never change the amount you buy down it doesn’t matter where the money comes from as long as you can prove it.

    #64344
    TTrumble
    Member

    Hello BakerTheBaker,

    The 0.5% automatic interest rate reduction for members who make less than 80% of the median income for the MSA in which they are buying is still in effect.

    As far as a new grant program goes, you will probably be able to take advantage of any new program that is introduced before you submit the bank app. There’s too many “ifs” to determine for certain if it could be done after the bank app is submitted, but it’s pretty unlikely.

    And before anyone asks… No, there’s no information of any sort on a new grant program yet. You can count on a big announcement when that happens.

    Tim Trumble
    Online Operations, NACA
    ttrumble@naca.com

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