CTC – FINAL

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  • #48505
    Drob47
    Member

    Exciting time. It’s been a loooooooooooooooooooooong journey, and we’re in the 8th Inning of the game and ready to close. Closing date is set for May 7th. Just need my Closing Disclosure. Praying we get this grant since we’re Priority Members. Either way, can’t go wrong with a 1.25%

    #48506
    GlennyP
    Member

    Congratulations! Why are you doubting getting the grant?

    #48507
    Drob47
    Member

    @GlennyP Because my Counselor decided to tell me if your income/salary was over a certain amount it’s a possibility you won’t receive a grant. I’m thinking, but we’re priority members. Then i was told it’s just up to the bank. So now, why is it advertised that members receive grants if you’re under 100% the median tract income, but being told there might be there might be this hidden stipulation that folks aren’t aware about. Thus, I’m unsure.

    #48510

    What grant do you mean? The funds matching to bring your interest rate down? That is automatic according to at least three different NACA folks, both in person and online.

    #48545
    Drob47
    Member

    Yes, the Fund Matching to bring the interest down.
    I was told I may not get it due to my salary, this was from my MC

    #48617
    Drob47
    Member

    My Closing Disclosure came into the mail,(not the final) and it appears we didn’t receive the lender matching Grant. I thought priority members are matched after buying down 7 points.

    • This reply was modified 1 year, 5 months ago by Drob47.
    • This reply was modified 1 year, 5 months ago by TTrumble.
    #48656
    TTrumble
    Member

    Hello Drob47,

    There’s no “hidden stipulation”. Where did you counselor dream that one up? The ONLY time the the buy down program varies from the standard is in the state of CT, which has a state law limiting the buyer contribution to five points instead of seven.

    As you noted, the CD you received is NOT the final one. If your household income is below the median for the MSA in which you are buying, the lender matching grant of all buyer contributed funds over seven points is automatic.

    You have nothing to worry about unless the final CD comes back without the grant. That’s when you reach out to me directly to see if I can make sense of it.

    Tim Trumble
    Online Operations, NACA
    ttrumble@naca.com

    #48661
    brownfox152
    Member

    Hmmmmm, did I miss the part a matching grant??? Will one of you please elaborate on what MSA is??? I know you can buy down your interest rate but from what I’m reading, there is another part to it, maybe?

    Thanks!

    #48672
    southflorida
    Member

    @brownfox152

    Areas and Priority Members

    A Priority Member is someone who has a lower income than the average income of the county, Priority Members do not have areas restrictions and can buy anywhere.
    If you have a higher income than the county’s average, you are considered a Non-Priority member and can only purchase in Priority Areas.

    Priority Areas are Tract Census areas in which the average income is lower than the average income of the county, you can find out the Tract Census information of any property or neighborhood in the following website:

    https://geomap.ffiec.gov/FFIECGeocMap/GeocodeMap1.aspx

    In the first row, you will see the “Tract Income Level”, there are 4 (Low, Moderate, Middle and Upper) and you can purchase in any area where the Tract Income Level is Low or Moderate and you can purchase in some that are Middle, never in Upper. Basically, you need to look at the 6th row where it says “Tract Median Family Income %”, if it’s less than 100%, it’s considered a Priority Area and a Non-Priority member can purchase there.

    Also, you can select the check mark in the left of the website where it says “User Select Tract” and you can just click around the map to see the Census information of any Tract area, each little “square” is a different tract area.

    Interest Buy-Down

    You can decrease the interest by buying points of interest, each point will cost you 1% of the loan amount and it’s worth 0.25% in a 30 years loan and 0.50% in a 15 years loan. However, as a member you can buy a maximum of 7 points, but you can decrease the interest further with Seller concessions (contributions) which would normally be used to help you with the closing costs. However, since with NACA you don’t pay closing costs, if you get a seller contribution, those funds will be used to decrease the interest further.

    If you are considered a priority member and you buydown the interest with your funds (family gifts included) more than 7 points, then you get the lender match, whatever money you put over 7 points will be applied to reduce the principal and the lender will match that amount to buydown the interest further.

    I hope this information helped

    #48689
    Drob47
    Member

    I closed yesterday! which was awesome. at 1.25, the lender did match, but i’m just a bit curious in regards to why wasn’t my Borrower portion of Required points was 7%

    Here’s the breakdown of my loan from BOA

    INPUTS
    Starting Loan Amount: $415,000
    Interest Rate: 1.2500%
    Points: 10.5000%
    Calculated Points ($) $ 43,575.00
    Broker Fee: $ 3,000
    Days prepaid interest 15

    Required Points based on original loan amount: 10.500% $ 43,575.00
    Original Seller Portion of Required Points: 0.000%
    Original Borrower Portion of Required Points: 10.500% $ 43,575.00

    Output for EDGE
    New Loan Amount: 393,562.00
    New Points: 5.6259%
    Pricing Exception Amt: 4.8750%

    Original Borrower Cost: $43,575.00
    New Borrower Paid Points: $22,137.86
    Borrower Down Payment: 21,438.00
    New Borrower Costs: 43,575.86

    Difference in Borrower Contribution $ .86

    Required Points based on new loan amount 10.500% $ 41,324.01
    Seller Portion of Required Points: 0.0000% $
    BAC Portion pf Required Points: 4.875% $19,186.15
    Borrower Portion of Required Points: 5.625% 22,137.86

    • This reply was modified 1 year, 5 months ago by Drob47.
    #48692
    Drob47
    Member

    reason why i thought we didn’t get it because my rate remained at 1.25% which i originally thought i was responsible for. I just think the bank more towards the principle than the interest rate. Which is not what we were intending or expecting.

    #48695

    CONGRATS on closing! You give us hope!!

    #48696
    Al92
    Member

    @Drob47

    Thank you for the detailed information. Congrats on closing.
    Besides $43575 what other expenses you had? How much reserve you had to show if applicable?
    I have an exact same game plan with a 450K loan 🙂

    #48700
    southflorida
    Member

    @Drob47 I don’t understand what was your concern, You had $43,575 and $22,137.86 was used to reduce the interest from 3.875% to about 2.375% and $21,438.00 was used as down payment to reduce the loan amount from $415,000 to $393,562.00 and the $21,438.00 was matched by the lender to reduce the interest from 2.375% to 1.25%.

    You got advantage of the interest buydown and lender match features and YOU GOT A GREAT DEAL, CONGRATULATIONS.

    • This reply was modified 1 year, 5 months ago by southflorida.
    #48703
    Drob47
    Member

    10k for reserves but that got chewed up by the taxes lol

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