Tagged: Priority to non priority
October 13, 2021 at 6:18 pm #76951
I’m a realtor out of Oklahoma City. This process has been a nightmare for 2 of my clients. One client closed after 68 days and the other client (who was approved twice as a PRIORITY member in 2020 and 2021)has now decided to cancel the contract altogether over NACA changing the interest rate from priority to non priority interest rate without any explanation at all 2 weeks before the close date. The email that we received from Erick Exum said the following 4 days before the closing “Hello
I appreciate wanting a better rate, but you currently qualify for the non-priority rate in the Metropolitan Statistical area you ae in contract to purchase. We must underwrite to income additional to the base income (bonuses, Overtime commissions etc.) as will the participating lender. This was explained to Ms. Wise when she asked about your file. Had we sent your file to the bank ignoring the additional income, the bank would have rejected the application with the rate reduction program applied. That would have cost days if not more in registration delays in addition to a second run through NACA Credit Access.”
Well the buyer has decided to cancel the whole deal which I do not blame him one bit. When you change a status does NACA not inform you? So, overtime is counted towards your eligibility even though it is not guaranteed at all? Mine you the buyer loses earnest money, inspection cost, structural engineer fees and the home.
Yes the interest rate does better when you want your payment to be at a certain dollar amount period. So Mr. Trumble I hope you can enlighten me on this.October 13, 2021 at 11:49 pm #76953ReadysetgoParticipant
He speaks about overtime in this thread .October 14, 2021 at 5:55 am #76955KristijayParticipant
This is EXACTLY the type of situation that I was referring to by my response in that linked thread. In the cases that I’ve seen, the member doesn’t want the overtime or bonuses included but they have no choice. The only resolution I have seen is one instance where an exclusion was granted to purchase the home in a non priority area as a non priority member, but at the higher interest rate.October 14, 2021 at 8:31 am #76958
According to Mr. Trumble. a VOE form should be added to the file. My client does not have a VOE form submitted by the employer.October 15, 2021 at 12:28 pm #76964
So my conversation today with the MC boss told me he is on pace to clear 80k even though for the past 5 years he has been under the limit that is allowable to be a priority member. Then I was advised 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. Today was the closing day.
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