July 10, 2018 at 11:51 pm #42993
So we found a builder and a lot for them to build on. (Not in a new construction community) He is in the process of getting the land surveyed and all that and will let me know what can be done. He said he will fully fund the process so I can buy the property from him. In the meantime, at what point in this process do we a.put an “offer” in and b. Put our earnest money down? There obviously isnt a foundation yet so not sure what to do now. @ttrumble any insight?July 11, 2018 at 11:14 am #42999
you need to make sure the prices the builder has would fit NACA’s guidelines and your specific situation, I don’t know if you are a targeted member, if you are not, you are a bit limited in what areas you can buy, if you are already NACA approved and you know you would qualify to buy one of the builder’s models, you can go under contract and start the credit access process even if the house will be finished in the future.July 11, 2018 at 11:22 am #43002
@southflorida thank you for your response. We are not targeted members but we have been approved and have been looking around with an agent.
The builder said he would do is best to work with our price range. With that said, I guess once he gets back to us and we go in to talk about blue prints that must be when we can go under contract. I always thought the frame of the house would need to be up first.July 11, 2018 at 5:31 pm #43009
If you are not a Targeted Member, you need to make sure that you buy in an Tract Census area where the average income is less than the county average income, if you don’t know how to check, let me know and I will give you instructionsJuly 11, 2018 at 6:43 pm #43010
May I ask why that would be the case with new construction? I thought if the land and home that is built fits in my approval limit price, I can get it done ? @southfloridaJuly 12, 2018 at 10:19 am #43016
it also has to meet other guidelines even if it’s New Construction, you have to make sure it will be located in a Tract Census area where the average income is less than the county average income. Do you know how to check? You may be surprised with good areas having average income under the county average incomeJuly 12, 2018 at 10:54 am #43018
That’s not true. Non-targeted members can purchase in non-targeted areas. You are just subject to a lower price cap, which is set according to the area you are buying in.July 12, 2018 at 11:07 am #43020
@cmontgo80 thats what I thought too. So hopefully I should be good. Still in preliminary stages.July 12, 2018 at 12:30 pm #43026
the regional price limits are no longer in effect as of July 1st. I know that non-targeted members can buy in a Tract Census area where the average income is less than the county average income (Before it had to be below 80%, now below 100% which opens a lot of new opportunities for Non-Target members). However, I am not sure if with the New Guidelines Non-Targeted Members Can’t buy in Tract Census areas where the average income is above the county average income PERIOD, or, if there is some other restrictions since the regional limits are no longer in effect.
At least in my case, this new guideline is the best that could have happened since in my area prices are super high.July 12, 2018 at 12:43 pm #43027
@southflorida where can we see this policy change? That would seem to drastically limit the areas where non-targeted members can buy. I am currently in the mortgage process for a home in a non-targeted area as a non-targeted member. The housing prices are significantly lower in this suburb than they are in-town, where the vast majority of targeted areas are located. A mortgage in town would not be what I consider “affordable” and would mean a commute (which is a big NO!) I guess this will reduce participation of non-targeted members.July 12, 2018 at 1:37 pm #43030
here is the post
But I don’t know details, I don’t agree with you about this change reducing participation of non-targeted members, in my case, I searched for 6 months with no luck, when I found out of this change, I found a home in a matter of days.July 12, 2018 at 2:00 pm #43031
Hello guys sorry to hijack this, I am in the mortgage process and I know some of you are as well. Any Idea of what this mean Status: C&I ApprovedJuly 12, 2018 at 2:05 pm #43032
The criteria for a targeted area was expanded, but now non-targeted members are limited to buying in those areas. Those guidelines would not have worked for me at all. Targeted census tracts in the area I am buying in are virtually non-existent. And the few that may qualify are not in desirable school districts. However, under the maximum acquisition cost rubric, I was able to find something. Under the new rules, I would not have been able to purchase the home I am purchasing because of my income and the area. So it will work for some non-targeted members, but not others.July 12, 2018 at 2:15 pm #43034
@jcleus I think it means “Credit & Income Approved?” I am not 100% sure though My file just moved out of this phase back to “N/A”….
ETA: per Tim Trumble, it means the bank has accepted your application and assigned it a tentative loan number. You’re getting closer!!
July 12, 2018 at 6:20 pm #43037
- This reply was modified 5 months, 1 week ago by Cmontgo80.
Priority Members, who are low and moderate income borrowers in a MSA, can purchase anywhere in the MSA. Non-Priority Members, who have an income 100% or greater than the MSA median income, can only purchase in Priority Area consisting of low and moderate income areas in a MSA. Since MSAs have different median incomes, you may be a Priority Member in one MSA and not in another. All NACA mortgage approvals must be affordable as determined by NACA and within conforming loan limits. You can purchase up to your approved Maximum Mortgage Amount that does not exceed the current conforming loan limit of $453,100 for a single family house in most areas and $679,650 in high cost areas with considerably higher amounts for multi-family properties.
The definitions and data on the above terms are provided below and at http://www.naca.com in the Purchase Section under eligibility.
• Conforming Loan Limits: Visit https://www.fanniemae.com/singlefamily/loan-limits to see current single and multi-family conforming loan limits.
• MSA Median incomes: Found at https://www.ffiec.gov/Medianincome.htm
a. Select the most recent year.
b. Open the report in PDF or Excel and select the MSA by name – Furthest column on the right is the
median income for the corresponding MSA.
Priority Member: Low to moderate income Members (i.e. borrowers, co-borrowers and other household income earners) whose combined income is less than 100% of the median family Income for the MSA they are purchasing a home in.
• Priority Members can purchase any property within a MSA with a purchase price not exceeding the
conforming loan limit.
Non-Priority Member: Members (i.e. borrowers, co-borrowers and other household income earners) whose combined income is greater than 100% of the median family income for the MSA they are purchasing a home in. • Non-Priority Members can only purchase in a MSA’s Priority Area with a purchase price not exceeding
the conforming loan limit.
Priority Area: Is a census tract (an area or neighborhood between 3,000 and 6,000 people) where the median family income of the tract is less than 100% of the median income of the MSA. To find out which MSA a specific property is in and the Census tract it falls in, go to https://geomap.ffiec.gov/ FFIECGeocMap/GeocodeMap1.aspx
a.Type the property address in the address bar and click search.
b.Click the gray box for Census Demographic Data.
c.The 6th box down in the grid tells the percentage of the median income. Anything below 100 is a Priority
Area. The third box down is the median income for the MSA. If the Tract Income level in the top box
reads “low” or “moderate” it is a Priority Area.
d.If the address is not found, check the box on the left “user select tract” and place the dot where the
house is on the map. This may require the use of google maps and zoom in and out to find the place to drop the dot on the FFIEC map.
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