boa grant

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  • #71455
    Srlee87
    Participant

    hi, does anyone know if we are able to apply and use the boa $7500 grant toward our interest buy down?

    #71458
    Nelsont
    Member

    You cannot.

    You might be able to use the 10000 grant. The rules for the grant differ by state and county and even neighboring counties in the same MSA will have different criteria for how the grant is applied.

    Here are the rules for using any grant with naca.

    Cannot be applied toward closing costs
    Must be able to be applied 100% to down payment
    Must be a considered a gift
    Cannot be a forgivable loan
    Cannot have a length of stay requirement

    The 7500 grant has a closing cost requirement and is therefore ineligible. The 10000 grant has a closing cost option but some counties require a portion to be used for closing costs so you need to check the specific rules for the county you are buying in.

    For what it’s worth it is very common and much much easier to get your seller to contribute to buy down. They don’t pay anything out of pocket the difference is just subtracted from the sale.

    #71469
    Srlee87
    Participant

    Thank you

    #71538
    LindaD87
    Participant

    @nelsont hlw do we apply for the boa grants?

    #71539
    Nelsont
    Member

    bank of america’s website

    #71540
    LindaD87
    Participant

    @Nelsont is there any NACA information that I need to provide?

    #71541
    LindaD87
    Participant

    @nelsont when I call boa they say the grants are applied through the boa loan application process. I am unsure of how to proceed, thanks in advance.

    #71543
    Nelsont
    Member

    First of all don’t call boa.

    Second naca members are not allowed to call boa

    third boa does not handle naca members with their general staff there is a small department that handles only naca members and nobody else knows anything about it

    If you start the boa loan application on your own you will risk being denied through naca

    finally you will not get to the boa loan application until you have already been under contract for a week or two or 3 which means if you are expecting a grant in order to afford a house all of that needs to be taken care of long before you get to the point where the person on the phone told you to start.

    Long story short grants in general don’t work with naca. Some do. But they are few and far between. Basically most grants take a non member and give them not quite naca level benefits. In many ways you can view a naca member getting a grant is like double dipping because the elimination of closing costs is often a bigger benefit than any grant you might receive.

    #71544
    LindaD87
    Participant

    @nelsont does that mean I cannot use the boa grants or that I need to wait until i am under contract. Are you aware of any specific Michigan grants that work with NACA? Or know who does?

    #71545
    Nelsont
    Member

    I honestly don’t know. I am just a member in Maryland who bought a house through naca.

    #71555
    MNWilson
    Participant

    It seems like the question that is not being answered is at what step do we apply for the BOA grant? If we are not allowed to speak directly to BOA then should our agent be able to assist us with applying for the grant? If we are working with a In House NACA agent are they informed our how the process should work?

    So if you can’t apply for the BOA grant without going through BOA’s loan application process, how should you apply and provide them with your NACA info?

    #71556
    purdynerdy
    Participant

    As NACA members, I don’t think we are eligible for BOA grants offered to the public.

    There is automatic 0.5 interest rate reduction from. BOA for NACA members making up to 80% of their MSA. But it’s only in select areas.

    #71557
    LindaD87
    Participant

    @mnwilson @purdynerdy yes both are correct. Do you of any grants we can use? I’ve searched high and low and found none.

    #71558
    Nelsont
    Member

    @LindaD87 Do you absolutely need a grant in order to buy a house? Grant partnerships with naca are frowned upon by the grantors because they view it as double dipping. It is easier and much more common for a naca member to get a seller to contribute 5% toward the interest rate buy down than it is for a non-naca member to get a 3% grant through avenues outside of naca.

    #71559
    LindaD87
    Participant

    @nelsont it is something that’s mentioned as an option and I am trying to understand the reality of it.

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