June 30, 2020 at 6:40 am #69875Alice_lifeParticipant
Hello everyone. I have a quick question on purchase amount. I have been receiving mix answers. Even though you receive a qualified mortgage amount it is also taken into equation the approved zip code max amount.
For example: If I am approved for a mortgage amount 1500 and find a house for 250k. However the max amount for that zip code is 230k. I cannot purchase this house. Or is there not a max amount per zip code. Please provide clarification.June 30, 2020 at 7:22 am #69876
I think you are confusing some things. Zip codes never factor into the equation.
I think you are conflating the census tract and the conforming loan limit.
The census tract, defined by the US Census Bureau, is basically just a neighborhood. There might be 15 or 20 census tracts within a zip code.
The conforming loan limit is defined by the Federal Housing Finance Agency and marks the point at which a conventional loan becomes a “Jumbo” loan. Naca is not allowed to counsel for jumbo loans. That limit is around 500k.
That is the ONLY loan limit naca has.
As far as location goes the only reason you would ever be limited is because you have high income. If your income is below the MSA median income (the median for the entire metro area, so like possibly 4 or 5 entire counties) then you are considered a priority member and have no restrictions and can purchase anywhere within the the MSA.
If your income is above the MSA median income then you are considered a non-priority member and are limited to purchasing in census tracts that have a median income below the MSA median income.
Even if you are non-priority member the house price doesn’t really come into play. You can purchase up to about 500k or your max approval amount, whichever is lower, even if the other houses in the census tract are 100k (yes you can be that person with a mansion surrounded by small houses).
You can use this link below to determine census tracts. The US census buerau doesn’t update numbers until August/September so use 2019 numbers. Hopefully this clears things up for you.
If your income is
June 30, 2020 at 8:01 am #69878Alice_lifeParticipant
- This reply was modified 1 month ago by Nelsont.
Thank you so much for the clarification.July 2, 2020 at 11:56 am #70005TTrumbleMember
It almost looks as if you were confusing some very outdated information with current information. Up to a few years ago, we had a regional maximum purchase price based upon where you lived. That was done away with however and the only limits are your own affordability and the Conforming Loan Limits set by the feds.
BTW, the CLL amounts officially went up literally just yesterday. Most of the country had a CLL of $484,350 for a single family home. As of July 1, it is now $510,400, and amounts for multifamily properties and properties in high-cost areas also increased accordingly.
If your household income is less than the median income for the Metropolitan Statistical Area (MSA), you are considered a Priority Member and may buy anywhere in the MSA as long as it is under the limits noted above. If the household income is above the median for the MSA, you are a Non-Priority Member and may only buy in a Census Tract with a median income below that for the MSA.
BTW, one additional thing that changed effective yesterday is that NACA can now help you buy a home in all 50 states, not just the 39 states where we had been licensed previously.July 3, 2020 at 4:44 am #70033MortgageGuyParticipant
Great news that the program has expanded to all 50 states
Tim trumbleJuly 6, 2020 at 3:10 pm #70086
How can i find out where can the non-Priority Member can buy in the Richmond, VA area?July 6, 2020 at 3:19 pm #70087
There are no specific lists because it would require naca or a computer programmer to develop an app to pull the data from the US Census Beurau and apply it to naca specific criteria. In the meantime you can use this link below and get the information you need.
Choose year 2019 at the top of the page (US Census bureau doesn’t update the numbers until close to labor day – they are on a public school year type of fiscal year)
Type in any address you want.
Press the Census Demographic Data button on the left near the top.
A window will pop up. The line that reads “Tract Median Family Income %” is the line you need to look at. If the result is 99.99 or less then you are good to go.
July 6, 2020 at 3:31 pm #70089
- This reply was modified 4 weeks ago by Nelsont.
So if its over 99.99 we can’t purchase through NACA?July 6, 2020 at 3:39 pm #70090
Correct. Non-priority members are limited to buying in census tracts that are below the MSA median income.July 6, 2020 at 3:42 pm #70091nitromilesParticipant
@tsnipes73 You would have to find a neighborhood where the tract median family income % is less than 99.99 in order to use the NACA mortgage as a non-priority member.July 6, 2020 at 4:10 pm #70095
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