I had my first intake earlier this month. My MC told me to save payment shock for 3 months. Unfortunately, I did a little overspending and my account went -$8.00 in the negative. I checked my July bank statement, and the -$8.00 is my ending balance. I stayed on top of saving my payment shock, however.
I got paid the next day, and resolved it. Will this ruin my qualification chances? It’s there anything I can do?
Nothing will ruin your qualification chances. Everybody is allowed to buy 2 houses with naca. As long as you have not already purchased 2 houses directly through the naca program nothing will prevent you from qualifying. Nothing.
With that said there are definitely things that can delay your qualification and having a negative account balance is one of them. Under normal circumstances your payment shock would start over. So if you had 2 months you are back to zero. Which is not a problem. There is absolutely no shame in needed extra time, it will only help you out in the long run. Along with resetting your payment shock you will need to write a letter explanation stating why it happened and what steps you are taking to make sure it doesn’t happen again.
Also let’s remember payment shock is NOT putting money aside in a separate account every month. If you do that to keep track that’s fine. But payment shock is the ability to save without overspending. It is the total of all of your accounts combined. The underwriters add up your checking and savings and if July for instance is more than August then you didn’t save.
As an example let’s say your payment shock is 200. If your savings has 0 and checking has 500 then next month your accounts need to equal no less than 700. You can’t average either So if the next month you have 200 in savings and 550 in checking then the following month you need to have no less than 750 combined.
Unfortunately, my account ended in the negative for the month of July. I tried talking to my MC, but haven’t heard anything. My action plan was originally to save payment shock for 3 months with no issues. Will this just cancel the month of July, or will I have to now do 6 months of payment shock?
You will start over at August. August will 1, September 2 and October 3. You can look at qualifying in November with the 3 months under your belt. This process starts over every time you run into this situation.
It will NOT disqualify. It will only delay you until you can show a pattern of good habits. 6 months is only necessary if you have no other history or something else your MC states.