How to: Priority or Non-Priority

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  • #73376
    robertsk50
    Participant

    I just had my intake appointment last week. At that time I was a priority member, the combined income of my fiancé and I was maybe 60k where the median income for my area is 80k. My follow up appointment is in February but here is my concern.

    We are looking at a particular area because we want to be closer to my fiancĂ©’s children but he just got promoted and is up to 45k and I am also going to be receiving a raise at the beginning of the year which will put us over that 80k median and we will not be able to buy a house in our desired area.

    For our follow up appointment in February, will they only look at our past taxes to verify income or will they be looking at our paystubs and calculating our estimated annual income for 2021? Do they look at gross or net earnings to determine if you’re priority or not?

    We plan on closing by the end of February so what can I do to ensure we are able to live in our desired area?

    #73377
    Nelsont
    Member

    Priority status is based on current base gross income. If you get paid every week they will multiply your pay stub by 52 and divide by 12 to get your annual and monthly income. If you get paid every other week they will multiply your paystub by 26 and divide by 12 to get your annual and monthly income. Your taxes are just for verification. In the case of a promotion you just need 2 pay stubs at the new higher rate and that’s what your status will be.

    What I would do is seriously think up a contingency plan. Realistically once you enter a contract in a house the bank review takes 45 to 60 days and sometimes up to 90. If your follow up appointment is February then that would be the absolute earliest you can be submitted for qualification. The qualification underwriters will have conditions for you to meet which might take a week or 2. Then you have to find a house. Again this is being realistic here. I would say April/May would be the earliest you can close. Just something to think about.

    Use this map get targeted area information down the the exact address. Good luck!

    https://geomap.ffiec.gov/FFIECGeocMap/GeocodeMap1.aspx

    #73379
    robertsk50
    Participant

    @Nelsont Okay so basically we are going to be nonpriority since they are going to need updated paystubs at the follow up in February. I’ll start looking at the targeted areas around where I’m looking.

    To make sure I’m understanding that part, does the “tract income level” needs to be low or middle or do I need to be sure the “track median family income %” is under 100%?

    #73380
    Nelsont
    Member

    You got it.

    Tract Median Family Income % = 99.99 or less.

    The 2 are actually tied together. The federal government considers 80-100 medium income. Above 100 high income and below 80 low income. The naca rule is a targeted area is below 100.

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