During my intake appointment my MC informed me that I may be eligible to purchase up to a $150,000 home- the average price in my area and surrounding areas is about $200,000. In my area there are a couple of down-payment asst programs that I can use (one specifically for my city for $27,000 and another for my county $15,000). I know that with this assistance I can buy down the interest to the lowest allowable rate- can I then use the rest of the money to towards the principle so that I could qualify for “more house.”
I’m a little confused, can someone please clarify this for me?
The answer depends upon whether you qualify for the matching buy-down program. You will be able to buy down the interest rate using your own funds (i.e. grant money) up to four points (four percent of the loan amount), reducing the interest rate by 1%. Funds beyond that are used to buy down the principal amount.
Additionally, if your income is less than the median income for your area, Bank of America will match the amount over the four points to additionally reduce your interest rate to potentially as low as 0.125%. This will further raise that purchase amount for which you will qualify.
You will need to consult with your MC for specifics.
I just had my first meeting and my max price is way below the average housing price. I asked my MC did she know any programs that would offer grants so I could afford more house and she stated I should reach out to a realtor. Is it to soon for me to have a realtor? The price I was given I’m paying more in rent now. You couldnt even get a 1 bedroom apt for that price in my county. Is there anything that can be done? I dnt want to get discourage because I’m at the beginning.