Can someone please explain the process of getting a seller to agree to contribute to buy down interest rate points for the NACA mortgage. I have read many conflicting things on this forum and trying to get an updated answer as of current. I am a non-priority member looking to purchase in Nassau County, Ny. Also how likely is it that they will agree to this being that it is currently a hot seller’s market, especially in NY. Thank you for all in advance.
Ask your agent how receptive sellers in your area are to seller contributions. On the whole seller contributions are extremely common and are quite often even advertised in the listing. Seller contributions almost always go toward closing costs. In the case of a naca member they go directly to buy down instead. As long as the seller has more than 1 year of equity they pay zero out of pocket for the contributions. The bank simply subtracts the contribution from what is owed to them after the sale. Plus there’s a very high chance the sale after the contributions is still netting the seller a profit. If they do end up contributing they are limited to 10 points or 10% of the sale price. The member status has nothing to do with the seller. Priority vs non priority members have different restrictions including what they can contribute themselves. The seller contributions are in addition to the buyer contributions and are bound by FHFA guidelines not by naca except how it’s applied (points instead of closing costs).