Forum Replies Created
July 27, 2021 at 3:03 pm in reply to: NEW NACA terms effective May 2021 priority and non priority members #76151
Unfortunate situation. I completely sympathize. However as I understand it, once you know you are above the median income you wont qualify for anything above 99 percent. Im not sure why the MC allowed for this property to be considered. That said, I think NACA should consider removing limits for non priority income members. We are getting ‘market’ rates anyway. Only benefits are basically no downpaymet (double edged sword), no points and no closing costs.April 24, 2021 at 11:02 pm in reply to: NEW NACA terms effective May 2021 priority and non priority members #75226April 23, 2021 at 1:12 pm in reply to: NEW NACA terms effective May 2021 priority and non priority members #75208April 15, 2021 at 9:38 pm in reply to: NEW NACA terms effective May 2021 priority and non priority members #75122
Hello @readytobuy21 ,
Every situation is different, but yes the buydown going from 1/4 to 1/6 per point is blow to the concept for sure. I would just keep the 6k from the example you provided. On other situations where amounts are more significant, I would just run numbers for different scenarios. And in those scenarios, consider the possibility of selling before the loan matures. This is a big factor because loans are almost all interest for the first 5 years.April 15, 2021 at 7:51 pm in reply to: NEW NACA terms effective May 2021 priority and non priority members #75120April 15, 2021 at 5:00 pm in reply to: NEW NACA terms effective May 2021 priority and non priority members #75107
Thank you for that explanation.cheers
Amazing journey! Thanks for sharing. Without NACA this would have been concession after concession in the current market. You can rest assured you got the best possible deal. Congratulations and enjoy your property
It’s important to understand that NACA is not the lender and if the goal is to close not changing the income to debt ratio that your approval was based on is paramount. Again, it is best to consult with your counselor or agent before making such decisions.
No, no and no. Please wait until closing or consult with your naca agent. A new car may and will have an impact in your ability to obtain financing for the house.
More important is “what” determines your loan amount, it is determined by the payment:
“The affordable mortgage payment is therefore limited by the Member’s income, his/her payment can be no greater than 31% of gross income (“Housing Ratio”) and his/her total monthly payments can be no greater than 40% (“Debt Ratio”).”
You make 1000 dollars a month (before any deductions, gross)
You have 200 dollars of montly bills
Your debt including mortgage cant exceed 40% of your income. So your max mortgage payment in this case is 200, (200+200)/1000=40%. Once you figure out your max mortage payment, your loan amount can be calculated using a financial calculator or app by entering this payment(200 dollars), the rate (eg 3%), periods (360 for 30 years) and solve for the loan amount (called present value or PV in financial calculators).
If you do this yourself and the amount you get is way different than what you were approved for, I would then ask for a review, likely done by a NACA underwriter.April 14, 2021 at 4:08 pm in reply to: NEW NACA terms effective May 2021 priority and non priority members #75071
Thank you for posting Brooklynne.
So as I understood it before this notice, non priority members were those with higher incomes than the 100% the median household income. We could only buy in priority areas, meaning in areas with households making less than 100% the median. Any areas designated 100% or more by the census data were simply not an option for non priority members (those making more than 100% median income).
Now it seems these classifications will change. A member making more than 100% the median income could still be classified as a “priority member” if the member chooses to buy in a priority area designated 80% or less, but if the member chooses to buy in an area designated 80% or greater, then the member would be classified as non priority. So I wonder if this lifts the previous 100% cap area restriction for higher income members.
If anyone knows or wishes to pitch in on these changes please feel free to do so
- This reply was modified 6 months, 2 weeks ago by aldoxide.