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achieve the dream is a regional event. Not unusual for counselors to travel to the event.
my vote is for Michelle Mitchell and Barbara – Hartford, CT
Your MRF (Minimum Required Funds) are the funds that you will use for expenses such as: Inspection, Earnest Money, Tax and Insurance Escrow, buy-down funds, 2 months mortgage payment reserves and your Cash to Close. Your Payment Shock Savings (the difference between your current Rent and your PITI Affordability – cannot be zero and needs to be at least $200/mo) is used to fund your MRF throughout the process.
Hope this helps.
My experience with repairs after closing and working with Hand was actually pretty smooth. I had to be a polite pest to some extent but not as much as prior to closing.
I stayed uber on top of everything because I wanted to make sure that the contractor had a smooth transition with everything and was paid by the Lender out of the escrow in a timely manner.
My thought was that if the contractor had a good overall experience, he would be willing to work with someone else on a Naca loan and that would help someone else and so on…
Good Luck and enjoy all the “Firsts” with your new home.
You are probably correct.
We asked for seller contribution and got it in a Seller’s market but there were a few extenuating circumstances that opened that door for it.
Also, we bought in WMass and not in the Boston area so that worked in our favor.
I think timing is everything. Opening a few CC’s prior to qualification for the purpose specified won’t be a problem. At most, a LOE may be asked for.
Opening up a new line of Credit a week before you close would stop you cold.
I think it is recommended to not do anything like that from the Purchase and Sale Agreement through Closing.
Offering more than the asking price is not a problem as long as you can show your MC that your total Mortgage would fall within your Affordability amount.
What is frowned upon and technically not allowed is to offer more to offset Seller’s Contribution to Interest Buy-down. Also, I believe that if the Seller contributes more than 6% then it kicks in a Federal review that would catch if someone had tried to do that.
Also, the total loan amount (selling price plus any repairs / wish list costs added to the loan) plus 2 months Mortgage (for single-family home) cannot exceed 110% of the Appraisal Amount.
If the question basically boils down to 160k @ 2.875 vs 160k @ 0.125, the answer is simple:
You may be putting an extra $2,200 down on the front end going the Naca route, but you are saving $211/mo and in interest and $76,000 over the life of loan (see bankrate.com/loancalculator to run the numbers yourself). Seems worth the extra $2,200.
I can share some insight from my experience. Your experience should be similar assuming that recent changes in Tax laws won’t change things.
All of my funds contributed to buy down (most from the seller and some from us) were deductible. This allowed us to take a total deduction significantly higher than the Standard Deduction and therefore a good-sized refund.
However, we had to contribute a minimum amount of $1500 to our buy-down (which we did) in order to be allowed to claim all of the Seller’s Contribution in the same tax year. If not, we would have only been allowed to potion it out over the life of the loan.
Be prepared to not have as much to claim for your interest deduction every year.
Every page of things like Bank Staements need to be scanned, including those with a watermark that says “this page left intentionally blank.” In other words, if your statement has 13 pages, everyone of those 13 pages need to be uploaded.
we were non-targeted in western mass and have citi as our lender. closed July 2016.
We had our own nightmare with negotiations with the Seller on a house that we were going to buy and then ended up putting an offer on the house that we ended up buying the day after the first deal fell through. We had to cancel the first offer and have faith that we would close on the house that was right for us.
We banged our heads against the wall through WEEKS on the the first house but had an accepted offer on the second house in one week.
Have faith and see it through.
Yes, it can be removed. To my understanding, it’s a lien to prevent people from using the program for flipping a home. For a legit reason, releasing it is should not be a problem. Ttrumble or your local NACA office can assist.
I believe that it is sufficient to bypass the max purchase price. Tim would be the best authority on this.
Ok. I will be “devil’s advocate” today and point out that a quick internet search of today’s rates for Conforming and non-conforming loans in the non-naca world are at about 4.5 to 4.625.
Naca will continue to improve and streamline their process over time but they are also dedicated to follow the necessary proper SOP’s.
The best thing is to inform your MC of these specifics and follow their advice.
I think the more simple your situation the quicker you will be qualified.