Got My PSL – But Buydown Limit Confusion!

[BakerTheBaker]

So I did get my PSL, but it doesn’t have what I expected. The 0.5% rate reduction from BOA isn’t shown, but more confusing to me is that our buydown rate is listed at 0.125% with us contributing a little over 10 points and our seller contributing not quite 2 for a total of 12 points. I thought that, even if we didn’t qualify for the BOA reduction, we as the Buyers could still only contribute 7 points. He also estimated taxes at $250 lower per month than I had. I am not complaining at all if these things are true, but, they both are in stark contrast to what I thought was the reality.

[msob24]

That’s amazing! I’ve been following your posts and the rate reduction rules closely. I was under the impression from what I’ve read on the forum that you can’t buy down that far. Great news! If my MC every responds to me or looks at our damn file I would love to get a surprise like this!

[Nelsont]

I am not sure about the buy down since there has been so much in flux recently. The BOA grant though will not be listed until the closing disclosure. BOA actually needs to issue it which won’t happen until after the loan is almost finalized. You will not get your actual cash to close value until probably the day before closing.

[Peapod0609]

The PSL will not show the interest rate reduction grant from BOA. That will not come until your bank app.

[BakerTheBaker]

Thanks for the confirmation on the BOA thing. At the end of the day, it’s only going to be a huge impact on our situation if they reinstate a program like last year – we’re going forward either way. I definitely remain confused and curious about the buydown thing, but again, we’re going forward either way.. I just wish there weren’t like a $30,000 swing on the final amount of cash we’re putting down.. ah well! Ever forward.

[Nelsont]

Looking on the bright side, if you do have to put down that extra 30k, how much of a bargain is that over the same house without naca?

[BakerTheBaker]

Oh yeah, still an enormous savings.. I qualified for a subprime mortgage and it was a full THOUSAND dollars more a month, on a 5/1 ARM. It was wild. There’s no question on the value at all, it’s just a question of having money in the bank after the process for the renovations and suchlike. It’ll be great no matter what.

[Peapod0609]

That is crazy! And I believe it, I calculated that without NACA my mortgage would be like $500 a month more!

[JR0312]

Please please please make sure your psl and bank app show your intended interest rate (after buydown) i learned this the hard way but eventually got the correct rate. It delayed my file though since i have to go through the initial disclosure period again which is about 7 days

[BakerTheBaker]

@JR0312 It shows 0.125%, which we’d LOVE to get, but though we weren’t able to with current restrictions. We’ll see what happens…

[Nelsont]

I think the restrictions apply to applications originating at that point. They do not retroactively adjust.

[JR0312]

Last week when my interest rate was being corrected, my mc said the max buydown is 1.25% unless I am 80% or below the median income

[BakerTheBaker]

We are at or below 80% of the MSA, but I thought finance law prohibited us from buying down more than 7 points anyway. We’re moving forward regardless, so I just have to keep being sure to ask the right questions and advocate for the best we can get.

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