CTC then COC ..?

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  • #36161
    SportyArtsy
    Member

    Hello NACA community –

    I’m hoping to get clarification on my situation. Last week I was CTC on a property. But today I received news that someone didn’t file a change of circumstances (COC) for my rehab budget. My rehab budget added 9K to my initial loan of 630K.

    I immediately called my MC to check if everything will be okay and she’s says yes because I was approved for 657K. This is great to hear EXCEPT the fact that all this time I was under the impression I was maxed out at 630K and my agent and I were scrambling to get the repair bids low enough to qualify as well as pushing the sellers to use 4 points for buy-down. When I asked her where she sees the 657K she says “Look at your original qual letter your PITI is equivalent to that. We don’t qualifiy at those number we qualify at piti”.

    Maybe I’m slow but could someone please explain to me what this means? Also, shouldn’t I have been informed about being approved for 657K specifically? This could of made the repair bidding process a lot less stressful knowing I had more room in the budget.

    Also, should I be concerned about this COC?

    Thanks for your time!

    P.S. This is a great mortgage program but I do think they are under staffed which makes it easier for things to slip through the cracks.

    #36162
    davisies
    Member

    I wish you luck SportyArtsy. I renegotiated to have the seller complete repairs because I was so afraid of the rehab/HAND process. I actually just signed a COC yesterday and am praying that the CTC comes through so I can close by the end of the month (otherwise I’m homeless). I just discovered this forum yesterday and the support is amazing. Hopefully someone can answer your questions.

    #36172
    TTrumble
    Member

    Hello SportyArtsy,

    The Change of Circumstance (COC) will create a small delay. The change in amount will require a new Closing Disclosure be created and the required three day waiting period from when it is issued.

    It’s nothing to really worry about. It a minor annoyance at worst.

    As for what you wrote regarding PITI, maximum acquisition cost and so on, you’ll need to get back with your counselor. What you wrote simply isn’t clear enough to provide an answer.

    Long story short, you’re going to be fine.

    Tim Trumble
    Online Operations, NACA
    ttrumble@naca.com

    #36177
    SportyArtsy
    Member

    Thanks Tim. That’s great to hear.

    #36178
    SportyArtsy
    Member

    @davisies Good luck to you too! I’m sure it’ll work out.

    #36234
    SportyArtsy
    Member

    Update. My COC was approved and my closing date’s now 2/28.

    Unsure what to expect next, but hoping for a smooth week ahead 🙂

    • This reply was modified 3 years, 8 months ago by TTrumble.
    #36253
    TTrumble
    Member

    Hello SportyArtsy,

    You should close on the 28th pretty easily.

    Tim Trumble
    Online Operations, NACA
    ttrumble@naca.com

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