Bank of America Grant Funds Exhausted????

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  • #58775
    jekenezar
    Member

    I have been in credit access for almost two weeks. Today I received a call saying that my file is ready to be submitted for bank app but it has been determined that all of the bank of america grant funds have been exhausted. I am weeks away from my closing date and this news is devastating. During the property specific letter review I was eligible with this funding. The house is under contract and the seller has been questioning if we will be able to close. Without this grant I will lose my earnest money deposit and money spent on inspection. I am so devastated. I do not know what to do. I was told I was eligible just to learn this today. I do not know what to tell my kids.

    #58776
    Al92
    Member

    Are you referring to automatic %1 reduction which was rolled out recently or lender match grant?

    #58778
    jekenezar
    Member

    Yes that’s the one I’m referring to

    #58779
    Nelsont
    Member

    I am sorry to hear this. Unfortunately all grants for all programs in all industries are not infinitely funded. Whether the money comes from internal or external sources a set amount is earmarked to fund the grant and when it runs out it won’t be replenished until the beginning of the next fiscal year. Companies do this because if you call it a grant then it is considered charitable and you get tax incentives as a business or contributor. You can think of grants like scholarships.

    If the funds were permanent the business would not get the same tax benefits and the funds would be labeled as profit margin loss which companies don’t want to do unless they put a repayable stipulation on the grant which naca does not allow.

    #58780
    Al92
    Member

    Nelson, when you say “fiscal year” does it mean grant will be available in 2020? Is it the same practice every year?

    #58781
    Nelsont
    Member

    Fiscal year is determined by the company. It is the company’s budget year.

    Schools have a fiscal year starting in August or September. So now would be the 2020 fiscal year for most public schools. Local Governments tend to follow the schools.

    I do not know what boas fiscal year is but it is pretty rare for the financial industry to not go with January.

    As far as availability I have no idea. The only people who know for sure at this point are probably bank of America executives.

    #58782
    frankysmom
    Member

    Oh my gosh, that’s awful, what area are you in?

    I don’t understand why the grant isn’t reserved once a contract is signed.

    #58786
    Nelsont
    Member

    Because the contract is signed before boa boa approves the sale and commits to the loan which incidentally is usually a few days before closing.

    Boa also is unaware of the contract until the credit access/bank app phase.

    #58788

    I am in the WASHINGTON-ARLINGTON-ALEXANDRIA DC/VA/MD/WV. I am currently under contract and was initially given the grant because I am at 78% of the median income. I am going to Bank Submission and my counselor says that funds may have potentially run out. This greatly impacts the affordability of the home. I am looking at a rate of 3.125 instead of 2.125. My Monthly payment went from $2114 to $2360. I already paid for an inspection and could potentially lose my EMD of $3k and inspection of $500, if I cant manage to get the payment down. I really prefer not to through all of my savings to buy the rate down. No one been able to provide me with any information and most offices that i have spoken to have no idea. If they are going to cut it off they should at least pardon those who were under contract by a certain date.

    A BOA ad offering a closing cost grant flashed in my email yesterday, they definitely have the funds for regular borrowers.The set aside 5 billion. If it got exhausted that fast I would be shocked.
    America’s Home Grant

    #58789
    Nelsont
    Member

    I wouldn’t be shocked. The first time I bought a home in MD was through FHA and I was notified of a grant with MMP. I forgot which one it was (they have many) but the counselors at the first time home buyers class drove home that some of the grants through MMP must be applied for in December or January because they are so popular the grants run out usually by February. This was years ago but, grants running out prior to Q4 is the norm and Prior to Q2 is not unheard of.

    #58790
    jekenezar
    Member

    Richstalwart this is exactly my same predicament now

    #58792
    DCL822
    Member

    @jekenezar and @RichStalwart15 I’m so sorry this is happening to you both. I too was so excited to find out about the BOA 1% grant program but was crushed when I was told I couldn’t utilize it because I was already under contract. It would have saved me $18,000 of my buy down money. I too am in the DC area and not only are the housing prices very high, the property taxes are high as well (PG County) and this grant would’ve helped tremendously. I was disappointed but can’t imagine how I would feel if I was in the position to lose my house and earnest monies. I wish NACA members could use the other BOA grant programs (America’s Home Grant and Down Payment Grant program specifically) but apparently we cannot. NACA just rolled out this new 1% grant program in June. I can’t believe that the money is already depleted.

    #58794
    Peapod0609
    Member

    @TTrumble can you chime in on this at all? Is the grant exhausted for all areas? If so when will it be available again?

    I am purchasing in the Lake County, IL MSA and if I can’t get this grant it is going to be a pretty decent blow to my affordability in this area.

    #58804
    GlennyP
    Member

    This is devastating to me as well. What’s even more frustrating is I’m sending my NACA realtor houses I want to go view, and he responds that the grant is no longer available. Why wouldn’t you send me some kind of communication?

    They just started the grant program 3 months ago – I know because I was in the office when the MC’s got off of the call and I overheard them talking about it. I asked my MC if they planned on replacing it with anything else – no response.

    I’m not even in the worst part of the NACA process (closing on a house) and I feel totally frustrated. The only houses I see are the ones I’m sending my NACA realtor. He’s unresponsive when I ask him certain questions. If it wasn’t for my friends, I wouldn’t have any guidance on this thing.

    #58808
    Al92
    Member

    My MC also confirmed today that both lender match grant and 1% interest reduction is no longer available. I hope they will come up with similar incentive again. These two options were unique to NACA.

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