January 13, 2020 at 12:44 pm #64529frankysmomMember
So after reading about the maybe temporary change to the buydown maximum. (5 points total including buyer, seller AND grants with an extra .5 to priority members 80% below median income.)
Safe to say, the following programs are now obsolete?
First look program and the lender match.
Any other maybe temporary changes we should know?January 13, 2020 at 1:41 pm #64534BakerTheBakerMember
As far as I know, that’s where we stand as of today. Everyone remains hopeful for better news in the immediate future, but nothing can/has been officially said. I’m sure these forums will be alive with discussion if something is announced, and I’m quite sure Tim will inform us the moment he’s able, if anything
When we started the process last May we planned as though able to buy down to 0.125% with the Lender Match, so I (like everyone else, I’m sure) am very hopeful that something similar is announced very soon.January 14, 2020 at 11:44 pm #64652TheLongJourneyHomeParticipant
Have the Loan Limits changed for 2020? I’m looking at the loan limit website and the numbers are different than the NACA website. I tried to ask the question in the forum but its like its blocked or something.January 15, 2020 at 5:55 am #64656
Yes. Approximately 510k. It’s on the ffeic website.January 15, 2020 at 3:48 pm #64691TheLongJourneyHomeParticipant
Thank you for your answer! been driving me mad!January 15, 2020 at 3:55 pm #64692
@TheLongJourneyHome just an FYI NACA has to abide by a number of federal regulations. Any change to the regs are going to be updated on that federal agency’s website and any mortgage lending blog. Naca will probably not broadcast these changes unless they are major and affect the way naca operates.January 20, 2020 at 9:19 am #64856
I am in the midst of negotiating an offer today. Has there been a change to the buy down? I and my NACA realtor are under the impression that I can buy down 7% of the purchase price minus $3000 AND that the sellers concessions will further buy the interest rate down.
Is this no longer true? From this forum, it sounds like the lowest the interest rate will drop with any contributions (including the seller) is 1.25%.
On what website did you read about the temporary change? (How is that information shared?)
How do I @TTrumble?January 20, 2020 at 9:32 am #64857
Due to citi exiting the mortgage lending industry in 2018 and dumping all of their naca clients onto bank of america and NACA increasing advertising and recruiting in 2019 Bank of America ran out of appropriated funds for naca members in August, a full 4 months ahead of schedule. Bank of America and NACA renegotiated temporary terms which include a maximum buy down of 5 points or 1.25% lower than the current rate. Bank of America will gift you an extra 0.5% interest rate drop automatically if your income is below the 80% median mark for your MSA.
This information is not on any website but, is mentioned at current workshops and can be found throughout this forum as it is a topic that comes up often. @TTrumble has mentioned several times there are currently no new provisions though once there are we will all be made aware. He has also mentioned naca is looking for additional lenders to help ease the delay caused by bank of america being overbooked. I would imagine any news will come in the form of an official press release so you might want to check the investor relations page of bank of america or dig through naca’s main site for news. Usually companies don’t make financial announcements until the end of January at the earliest.
As of right now though 7% buy down is not allowed. You can do 5%.
1 point = 1% = 0.25% interest rate reduction.January 20, 2020 at 9:43 am #64859January 20, 2020 at 10:05 am #64862
No. The limit is for seller, buyer and grants combined.January 20, 2020 at 11:35 am #64864
The local NACA office is still stating in 2020 that I can do 7% – $3000 plus further buy-down for any seller contributions. I’m going to have to go with that until new information is shared with the NACA branches.
This same information was also stated in the Post-Qualification webinar last week.January 20, 2020 at 2:36 pm #64867
If that is the case then this is new. Go with that. That would be great news!January 21, 2020 at 9:46 am #64886Peapod0609MemberJanuary 21, 2020 at 10:23 am #64888vonny2421Member
hopefully we can get some confirmation on thisJanuary 21, 2020 at 2:36 pm #64901BakerTheBakerMember
My MC confirmed this morning that you can buy down to 0.125%, but I haven’t gotten a specific answer back from him about the BOA grant/rate reduction. I specifically told him there seems to be a conflict in the information being given out, so I’m eager to see what he and/or Tim come back with. We’re about to go to Credit Access, and this makes a HUGE difference.
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