# FFIEC – MSA Calculation

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• #65684
msob24
Member

Quick question about MSA rules and priority member calculation. For example:

Tract Income Level Upper
Underserved or Distressed Tract No
2019 FFIEC Estimated MSA/MD/non-MSA/MD Median Family Income \$124,000
2019 Estimated Tract Median Family Income
\$154,045
2010 Tract Median Family Income
\$134,417
Tract Median Family Income %
124.23

Do I calculate my income against the \$124k number or the specific median income in the 2019 Tract (\$154k)?

If I’m under 80% my MC confirmed we can buy our rate down more than 5 points but I’m not sure which number to calculate 80% from. Please advise….

#65685
Nelsont
Member

124 is the entire metro area (Dc?)

154 is the neighborhood

You calculate your income based on 124. If it is below you can buy anywhere. In your case the total combined income from you and your spouse must be 99.2 or less to get more than 5 points.

Don’t pay attention to 134 that’s just a historical reference.

124.23 is the percent of the neighborhood compared to the MSA. Around 100 is average. 124 means it’s a wealthy neighborhood. Non priority members cannot buy in wealthy neighborhoods. They are limited to areas below 100 or in your case below 124.

#65686

Out of curiosity, who is your MC? I’m hoping it’s someone other than mine who’s corroborating being able to buy down more than five points…

#65688
Peapod0609
Member

The \$124,000 number is what you are looking at. If your income is under that number, you will be a priority member for NACA and can purchase anywhere in that MSA.

If you are at 80% or under, you are eligible for a special interest rate reduction as well. So if you are below \$99,200 then you will qualify for the lower interest rate and/or the additional buydown.

#65689
msob24
Member

Thanks for the responses. This is NY, specifically Long Island. I was really hoping I’d be able to work off the \$154k number as I’m over the 80% on \$124k….bummer I’m working with the Newark office and my MC is David Henry.

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