Payment Shock or MRF?

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Viewing 11 posts - 1 through 11 (of 11 total)
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  • #508
    1fabgal
    Participant

    When I have completed my task list, do I have to have the MRF totally saved to be submitted to underwriting? Or just the payment shock saved?

    #509
    lrmatthews18
    Participant

    Both

    #510
    1fabgal
    Participant

    Both? I thought you could apply your payment shock towards your MRF?

    #518
    TTrumble
    Member

    Hello 1fabgal,

    Payment shock and MRF are different items. Payment Shock Savings are the difference between your current monthly rent and your anticipated mortgage payment. You must be able to show that you have saved this amount each and every month right up until closing, for a minimum of three to six months. This proves your ability to make the new mortage payment.

    Minimum Required Funds (MRF) are required to cover expenses such as inspections, first year’s insurance and one to two months of mortgage payments in reserve for emergencies.

    Even though the MRF goal has been reached by building up savings through Payment Shock and other methods, you must continue to save Payment Shock each and every month right up until closing.

    So lrmatthews18 is correct. Both.

    Thanks!

    Tim Trumble
    Online Operations, NACA
    ttrumble@naca.com

    #534
    1fabgal
    Participant

    My question was about being submitted to underwriting. Do I notify my counselor once I have saved the reserves? Or do I just need this amount by the time of closing? Can I be submitted to underwriting with just the payment shock saved?

    #553
    lrmatthews18
    Participant

    Both PS and MRF need to be saved BEFORE you can be submitted to UW. When you have your MRF saved and are pretty certain you have demonstrated your PS then you should make a follow up appt with your MC so they can verify and make sure you have everything you need to be submitted to the UW. Just make sure you send your bank statements and clearly show you have saved PS and MRF.

    #571
    TTrumble
    Member

    Agreed. The only difference is that payment shock savings must continue up until closing even if MRF has been reached.

    Tim Trumble
    Online Operations, NACA
    ttrumble@naca.com

    #750
    augredbone
    Participant

    Hi im new and Im attending a workshop this coming weekend… I have a question about this i keep seeing payment shock etc… what if your current rent is more than what you want your mortgage payment to be do you still have to have a payment shock since you are going down not moving up in monthly payments.. Also I wanted to know is i understand you dont have to have perfect credit but Ive read here n there people having to clean up thier credit report is there certian things or time frame you are looking for instance some people dont look at anything past 2 yrs old anything prior to that needs to be addressed… i know each person case is different but there has to be some guidelines thats straight across the board when it comes to the credit report im asking because i want to be proactive and start to try to make my process a lot faster by addressing things promptly.. thanks

    #776
    TTrumble
    Member

    Hello augredbone,

    Every question you have asked is dealt with specifically in the workshop, so you’re “putting the cart before the horse” just a bit. If there’s anything you don’t understand after the workshop, feel free to get in touch with me. For now though, I won’t “step on the toes” of your workshop facilitator.

    Thanks!

    Tim Trumble
    Online Operations, NACA
    ttrumble@naca.com

    #794
    augredbone
    Participant

    okie doke i was trying to get some positive reviews of the program only thing im about to find are a bunch of negative reviews i dont know anyone personally who has went thru the program to get they take on things is why i was asking many questions… i was trying to see if its worth my time with going to the 3 hr seminar. thnks

    #940
    nchkel
    Participant

    All- Please post if NACA actually closes on your loan. I am looking for people that actual get NACA to close on their loan.

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