Bank of America Grant Funds Exhausted????

[Heather15]

@nelsont But the lender match is different then the 1% automatic rate deduction. So are they only going to give 0.125% for every 1% you put down? I’m confused

[Nelsont]

It sounds like they will give a 0.5% rate deduction until an actual program is agreed upon.

[cynthesized]

@ttrumble Is there an update on whether or not additional funds will be allocated to fund the lender match through the end of the year?

I am under contract, and my deal hinges on my 7% max contribution buying my rate down by 1.75%, as well as my seller contribution of 3% buying it down an additional .75%. I will get denied if the rate does not go down that much, so I need to know if this deal is dead.

[Nelsont]

I was under the impression you will not get past credit access unless you already have the funds and the lender match grant is a bonus that allows you to choose between buying down further or pocketing extra savings.

[cynthesized]

Well I have the 7%, I have actually more than that, but I’m capped at 7 since I am at 80.44% of the median income in my area…But I thought what this thread was saying is that they ran out of funds to do the match grant for the year – is that not correct?

[Al92]

@cynthesized
If you are not a priority member you don’t qualify to those two grants that we are discussing on this thread.
It should’t affect you in any way.

[Nelsont]

Plus they did run out in July/August. It was just temporarily reinstated this week at half the reduction it used to be. But again it’s only for priority members and never was for non-priority members.

[cynthesized]

I am a priority member since I am less than 100% of the median income for my MSA, my qualification docs confirm this.

[LMAmaro]

@cynthesized
I believe that in order to qualify for the two grants being discussed in this thread you need to be below 80% of the median income.

[RichStalwart15]

Per Ttrumble “This grant reduces the already below market NACA interest rate by one percentNow 0.5% for borrowers whose income is less than or equal to 80% of the median income for the Metropolitan Statistical Area (MSA) in which they are purchasing. This incredible new grant is available for Members purchasing in the MSA’s listed below. You indeed must be below 80%. An additional contingency is that you cannot buy down below 1.25 if you wish to do the grant.” If they decided to remove that caveat I have not been made aware of it.

[Rin1010]

I’m confused by this thread. Can you still buy-down the interest rate according to p. 11 of the Qualification Workbook? It states that for each 1% you pay up-front, the interest rate is reduced by 0.25% for 30-year mortgages and 0.50% for 15-year mortgages.

I have money in savings that I would use to buy-down.

Also, if my income is less than 80% of the MSA, is there an additional buy-down of 0.5% offered by BofA’s grant? I’m trying to understand if these are two different programs.

[Nelsont]

Your first question is fundamental to the naca program. Yes everyone is always allowed to buy down the interest rate at the rates you have mentioned.

And yes this is an additional benefit to buyers who are considered low income. Above 80% is moderate income.

[southflorida]

It is clear to me that now members that have an income of 80% or less than the average income of the MSA where they are purchasing will get 0.50% interest rate reduced automatically.

What I would like to confirm is if the lender match is still available, it’s the one in which if you are a priority member and you buy down the interest rate beyond seven points, the lender will match whatever amount you give after you pay your 7 points, the amount that you give over 7 points will reduce the loan amount and the lender will match that amount which will be used to buy down the interest rate further.

Is this still available?

[Nelsont]

I am not sure. And the fact that BOA re-implemented the interest reduction grant (albeit at a lower rate at least, for now) has muddied the waters. I was under the impression both BOA grants for naca members were exhausted over the summer. I have since only heard about the interest reduction and not the lender matching.

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