AMI Tax Year Question

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  • #76895
    Pure1
    Participant

    I am trying to qualify for a grant which stipulates that to qualify you can only make 80% or less of the area median income. My 2020 income falls within that criteria (80% of AMI). However because I’ve been doing a ton of overtime this year to have more homebuying funds, my 2021 income will surpass the 80% AMI 😭.
    Does anyone know if it is the previous year (most recent W2) income used for AMI calculations, or do they use what is reflected on your current pay stubs (I pray not). I am trying to get this grant in conjunction with my NACA mortgage (hopefully).

    #76896
    Nelsont
    Member

    Naca uses current pay stubs however overtime doesn’t count. I cannot speak to the grant you mention.

    #76897
    Pure1
    Participant

    Thanks for your quick response!
    I am glad NACA doesn’t count overtime. I will try to get in touch with someone from HPD to find out if they count overtime. Hopefully they don’t 🙏🏾

    #76899
    Kristijay
    Participant

    @Pure1 For NACA overtime IS counted if it is consistent and confirmed by your employer during your verification of employment. I would defer to your MC about whether or not your overtime will be counted. A couple of people on the NACA unofficial Facebook page went from priority to non priority due to the inclusion of their overtime so it’s best to confirm.

    #76900
    netnuevo
    Participant

    What is this grant of which you speak?

    #76911
    TTrumble
    Member

    Hell All,

    Overtime is only included if there is already a history of consistent and overtime over the past twelve months as shown on your paystubs and VOE form, and if the employer verifies that the overtime is likely to continue for the foreseeable future.

    Tim Trumble

    #76944
    Pure1
    Participant

    Kristijay and Ttrumble thanks for the clarification. I will certainly try to avoid OT from now on 😔.
    Its like the system is set up to punish you when you try to improve your situation, lol.
    Netnuevo, this is a grant my city have for first-time homebuyers exclusively. The amount was recently increased to up to 100 thousand, from a prior max of 40 thousand. Its administered by HPD via HUD approved housing non profits. I live on the east coast in a hot housing market (trying to maintain my anonymity on here 😁).

    #76947
    Kristijay
    Participant

    @Pure1 I would confirm with your MC about the exclusion or inclusion of your overtime based on your specific circumstances before you opt to avoid OT.

    #76965
    RobertaAtKevo
    Participant

    Well my buyer for the past 5 years has never exceed the allowable amount in Oklahoma but NACA advised him 2 weeks before closing his status was changed due to being ON PACE of going over. So my conversation today with the MC boss told me to have their decision overturn a letter from the employer will be needed to state that the member will not be working overtime and his income will not exceed the maximum amount. She also stated that he should stop working it.

    Today was our closing day.

    #76966
    netnuevo
    Participant

    I’m glad, it sounds like they are doing the right thing. I worked a ton of overtime earlier this year, and it never even occurred to either me or my MC to include it in my income, b/c it might allow you borrow more than you could afford.

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