My pre approval amount is really low on my letter. I plan on putting a buy down payment to raise the price higher. However, no homes won’t accept my offer without the amount showing I can afford it. Is there a way I can get a letter showing my amount with the buy down added? And how can I obtain it?
Your agent needs to explain to the listing agent how the interest rate buy down works and that you are NOT approved for a loan amount BUT rather a monthly payment amount that can be met by buying interest points.
Hi @tdm27603, you wouldn’t provide a Seller or Agent with your NACA Qualification letter, you provide them with the property specific letter your Mortgage Counselor would give you, which would have the price you’re offering the seller on it. Your Realtor requests the property specific letter from your Mortgage Counselor.
Thank you for this great information. I also have another question. So during my Purchase Workshop, I was told a priority member can take an additional .50% off their buy down amount. is this true? and where can I find this info?
Yes and no. It’s not written anywhere with naca. It’s a bank of America program. If your income is 80% or below the median income of your MSA then bank of America automatically takes 0.5% off the interest rate. They do this at closing so you will go through the process being provided numbers for a certain payment and interest rate and when you get the clear to close you will be given adjusted numbers. If your income is low enough.
Don’t forget that you have to show the funds for the interest rate buydown are available. At this point the money for the buydown should be in your bank account if it wasn’t already.
The BOA half-percent interest rate reduction is automatic if you fall below 80% of the median income for your MSA, so whether or not that will factor in is already known the moment we have an income figure for you. That half-percent, if you are eligible, will also be factored in.