BOA interest rate reduction

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  • #72322
    Blessed_drene
    Participant

    My understanding is that if you opt to use the BOA .5% interest rate deduction there is a specific limit as to how much you can buy down? Does anyone know what that specific limit is? What would be the lowest interest rate i can buy down with the BOA interest rate deduction?

    #72323
    Nelsont
    Member

    You have no choice to use the boa interest rate reduction. Members are eligible if their income is below 80% of MSA median income and then the rate reduction is applied automatically.

    Basically if you are low income you have a lower rate.

    #72340
    ltooks
    Participant

    @nelsont that applies to all low income or just in certain targeted areas? I was under the impression that it was certain cities.

    #72341
    Nelsont
    Member

    I think what you were thinking of was when bank of america offered both a 1% rate reduction and a lender match buy down option. Between those 2 you could only choose one. In August 2019 bank of america stopped offering both. Naca renegotiated a 0.5% rate reduction for low income members. That rule has been in effect for that last 12 or 13 months.

    Low income = 80% or less of the MSA median income.

    As long you meet the income requirements and are buying within a qualifying MSA there are no targeted area restrictions. You can find the list in this blog post here:

    NEW BOA GRANT PROGRAM

    Note the blog post is from before the program change so the numbers are not accurate.

    #72346
    Dunkindonuts
    Participant

    Is this based on the MSA median income of where you currently live or where you want to buy a home?

    #72347
    Nelsont
    Member

    Where you want to buy a home. But keep in mind if you are not explicitly clear that you want to buy a home in a different MSA you will be qualified for the MSA of your current residence. States certify mortgage counselors (I think but I’m not positive each state has their own test) so if you want to buy in an MSA that is in a different state there is chance your MC can only take you part way through the process before you need to be transferred. So this is definitely something that needs to be ironed out at the beginning.

    #72358
    mackjone
    Participant

    We have been under agreement for 93 days and checking. That is more than 3 months. Our vender is irritated with holding up this long and needs to return the house available

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    #72359
    Blessed_drene
    Participant

    Thank you everyone!

    #72360
    Blessed_drene
    Participant

    Thank you everyone!

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