Purchase amount clarification

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  • #69875
    Alice_life
    Participant

    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.

    #69876
    Nelsont
    Member

    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.

    https://geomap.ffiec.gov/FFIECGeocMap/GeocodeMap1.aspx

    If your income is

    • This reply was modified 1 month ago by Nelsont.
    #69878
    Alice_life
    Participant

    Thank you so much for the clarification.

    #70005
    TTrumble
    Member

    Hello Alice_life,

    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.

    Tim Trumble
    Online Operations, NACA
    @naca.com">ttrumble@naca.com

    #70033
    MortgageGuy
    Participant

    Great news that the program has expanded to all 50 states

    Tim trumble

    #70086
    tsnipes73
    Participant

    How can i find out where can the non-Priority Member can buy in the Richmond, VA area?

    #70087
    Nelsont
    Member

    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.

    https://geomap.ffiec.gov/FFIECGeocMap/GeocodeMap1.aspx

    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 search.

    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.

    • This reply was modified 4 weeks ago by Nelsont.
    #70089
    tsnipes73
    Participant

    So if its over 99.99 we can’t purchase through NACA?

    #70090
    Nelsont
    Member

    Correct. Non-priority members are limited to buying in census tracts that are below the MSA median income.

    #70091
    nitromiles
    Participant

    @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.

    #70095
    tsnipes73
    Participant

    ok Thanks

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