Question about LOEs and Median Income

[KrispyKareem]

I have my 1st appointment on Monday, May 2nd and wanted to try my best to come fully prepared so that my file can be sent to the lender that day/week. I’ve already been saving what I estimate my payment shock to be for over 6 months and have proof of that, and I should have enough to cover MRF; my questions center around LOE and Median Income. I’ve already preemptively written LOE for large withdrawals and deposits into my accounts, but I was curious if I should write a separate LOE for each incident or if I can do one for each account in a bulleted list (which I’ve already done and keep updated)?

My question with regards to the Median Income come from reviewing the https://geomap.ffiec.gov/FFIECGeocMap/GeocodeMap1.aspx website. Since 2016 data is not available, I’m assuming data that populates in 2015 would be used. Now on this website they list the following items for income: MSA/MD/statewide non-MSA/MD Median Family Income, 2015 FFIEC Estimated MSA/MD/non-MSA/MD Median Family Income, Tract Median Family Income, 2015 Estimated Tract Median Family Income and 2010 Tract Median Household Income. Which one of these values is the determining value for “median income as these numbers can be different.

[FTO101]

Awww @KrispyKareem!!! You look like you’re preparing well for what you THINK will happen :). To answer the question about the LOE’s, they have to be documented separately, signed, and dated. Before I went I had my login and uploaded things into my file that my MC said wasn’t there, so it was a waste of time and effort. ALWAYS keep dated copies of what you bring in and the dates you submitted them to your MC. This is NOT a FAST or EASY process(as far as what I’ve experienced and have read on this blog), so don’t get your hopes up unless you have a friend or family member working for them (IJS…). The median guidelines changed, but IDK what the numbers are right now. Some of NACA’s guidelines changed too, which may work to your benefit. That’s something to discuss with the MC. Good luck with the appointment!!! And your NACA process!

[TTrumble]

Hello KrispyKareem,

FTO101 is right that you should write separate letters for each item.

We use the “FFIEC CENSUS AND FFIEC ESTIMATED MSA/MD MEDIAN FAMILY INCOME FOR 2015 CRA/HMDA REPORTS” for the median income figures for your area.

The more you are prepared, the smoother it will go for you. One specific thing you can do is give your employers and your landlord a heads-up that they will be receiving the Verification of Employment and Verification of Rental forms so they can watch for them and turn them around quickly.

Upload your documents two or three business days in advance of you appointment, and call NACA Member Services at 425-602-6222 after 24 hours to verify their arrival. Also take hard copies of your documents with you to the appointment at well.

[KrispyKareem]

@FTO101 I try to remain optimistic, but am aware of the realities in the program. After reading relevant threads on EVERY page in the forum, I’m definitely aware that the NACA process is not fast or easy. I do believe that while I have time, I can do my own due diligence to prepare for my meeting by taking advice I’ve read here and preparing accordingly. Which is why I asked my question about LOE, have already started writing them and have prepared a binder with hard copies of all of the forms I need to submit ;). Thank you for your luck and reply.

@TTrumble, thanks for the clarification on the median income figure and giving the heads up. I’ve already started the process of breaking down my account specific LOE to be for each event that is close to or over the $199 threshold. While reviewing my letters, I have another question. Based on something I read in the forum, I wrote a LOE to explain why my rent amount changes month by month (changing of number of roommates and splitting of the fluctuating utilities). Would you advise to write a LOE for each change in the rent amount (which would be monthly), or just a LOE for the rent in general?

[determined1227]

Okay so for any large withdrawals from my account I need LOE’s for those I didn’t know that it’s great that I just read this post because my next appointment is when I turn everything in again in July to get qualified so I’ll start writing my LOE’s now because usually at the end of the month when I get my commission check I take out one lump sum to pay the rest of my bills so I have to date and sign the LOE is that correct ?

[FTO101]

@determined1227, you need LOE’s for large CASH DEPOSITS AND WITHDRAWALS. All have to be signed and dated prior to being scanned into your file.

[mscorap]

Make sure you save your payment shock plus $200 monthly is the only advice I have for you. Being over prepared helped me through the process. Good luck!!

[determined1227]

Okay well I can do that

[determined1227]

What would be considered a large deposit though is it 100+ , or what ?

[mscorap]

Just depends on the underwriter honestly. They asked why I wrote a $400 check but not about a $300 ATM withdrawal. Loe are easy and can be written in the MC’s office on the spot. Your best bet in my experience is to

1. budget to the penny
2. Set up autopay
3. Don’t do ATM withdrawals (get cash back at the register)
4. No nonpayroll deposits
5. No overdraft fees
6. SAVE!!!
7. also SAVE

and don’t forget to SAVE

[TTrumble]

Hello KrispyKareem,

Actually, I’m thinking a spreadsheet is the answer for your situation. I suggest you create one with the rent and utilities month by month and the number of roommates for each month for the past year. This should show how the figures varied from month to month.

Combine this with an LOE similar to what you wrote above and as long as it coordinates with your bank account, you should be okay.

Tim Trumble
Online Operations, NACA
ttrumble@naca.com

[KrispyKareem]

@TTrumble thanks. I just finished my spreadsheet to pair with the LOE I’ve already written. @mscorap thanks for your advice! I’m trying to be over prepared like you were to help them help me!

[divadreams252721]

I get monthly bonuses and reimbursements. Do I have to write LOEs or can I just get a letter from my employer’s HR department?

[TTrumble]

Hello divadreams252721,

You will need to write LOEs since they are not regular payroll. Make sure to note the deposits of the bonuses and reimbursements on your bank statements.

Tim Trumble
Online Operations, NACA
ttrumble@naca.com

[KrispyKareem]

@TTrumble and @FTO101, thanks. As of noon today, I’m NACA qualified. Being prepared upfront REALLY helped to shorten the time. Now on to the workshop and shopping.

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