April 18, 2021 at 4:39 pm #75163cgtParticipant
@ttrumble Obviously you know more than all of us being a part of the NACA organization. But when I read the non-priority statement in the email, I read it differently. Here is the statement again:
Non-Priority Members are higher income Members purchasing in a higher income area. They still receive a very competitive below market fixed interest rate: for example 3.125% 30-yr or 2.50% 15-yr using the NACA rate as of 4/12/21.
• Members who have at total qualifying income greater than 100% of the median income in the applicable MSA where the Members is purchasing and buying in a census tract with a median family income greater than eighty percent (80%)
The last bullet I would like to discuss. It just says a census tract with a median family income greater than 80%. When I read greater than 80%, I see that as any census tract 80.01+ for a competitive rate. It doesn’t give a cap of 100%, just states greater than 80%.
Mr. Trumble, if it is accurate what you said that is capped at level, then it is indeed really bad for non-priority members. I really want to use NACA since I have qualified to start my house search, but now I might have wait even longer for a home.April 18, 2021 at 7:47 pm #75164
Thank you for posting the information Brooklynne.
I am about to qualify before March 3,2021. In the NACA Qualification workbook page 11 it says “The NACA Buy-Down is only available with a NACA Mortgage and is only available when submitting your bank loan application and cannot be obtained once you have closed on your loan.”
To this end, even if I am qualified with the current policy before May 3 to get NACA Mortgage when I apply for bank loan application to the bank after May 3 can I get all the benefit as per the new policy?
When does the new policy apply for my case? When I am qualified to get NACA Mortgage before May 3 or when submitting my bank loan application after May 3,2021.
Please check all the policy changes and let me know your response since it will affect all my process.
YaredApril 20, 2021 at 6:20 pm #75184
@nelsont do you have any information or advice for my question on #75164?
Any one who have information please advice.April 20, 2021 at 7:04 pm #75186
The new policy is effective for all contracts entered may 3 or later.
Unless a seller accepts signs and dates your contract offer before may 3 then you will automatically be under the new rules.April 20, 2021 at 7:47 pm #75187
Thank you very much for your clarification.
It’s related to seller accepts signs and dates the contract not when I get my initial naca qualification.April 22, 2021 at 1:37 pm #75197NantesParticipant
To confirm, on May 3rd and after, non-priority NACA members are still limited to purchasing in areas where the MSA tract median family income percentage is less than 100? How Bruce worded the e-mail sounded like non-priority members can purchase anywhere greater than 80%, but at the cost of a higher interest rate.April 23, 2021 at 1:08 pm #75207coxtcParticipant
@TTrumble As a dues paying member of NACA, why was I not sent an email with this important information?April 23, 2021 at 1:12 pm #75208April 23, 2021 at 1:18 pm #75209coxtcParticipant
Nope. Spam folder gives me a number count. It is and has been empty.April 24, 2021 at 8:34 pm #75220
Does “one percent below the market fixed rate: for example 2.125% 30-yr or 1.50% 15-yr using the NACA rate as of 4/12/21” mean 1% below the actual market fixed rate or 1% below the NACA fixed rate? Thank you.April 24, 2021 at 9:16 pm #75221
Actual Market. The numbers referenced were nacas rates as of 4/12 compared to the market rate of 3.125/2.5
It should be noted the market rate is based on the fed rate which is what the government tells banks the rate should be near based on the economy. Banks often run specials and credit unions in particular may come much closer to nacas rate than the 1% gap and in the case of spring and summer 2020 were actually lower than naca. Of course though they required closing costs and down payment and any down payment less than 10% requires pmi.
Naca makes it real easy to figure out the rate. On the center of the page of naca.com the interest rate is updated daily. That is the naca rate.
One more note. Pmi on a 250k house is roughly equivalent to about a 2% increase in interest rate without pmi.
April 24, 2021 at 9:57 pm #75223
- This reply was modified 5 months, 3 weeks ago by Nelsont.
Thank you Nelsont, but now I have another question. The terms state that non-priority members “still receive a very competitive below market fixed interest rate: for example 3.125% 30-yr or 2.50% 15-yr using the NACA rate as of 4/12/21.” But based on your explanation, it seems as though non-priority members get the actual market rate and not a below-market rate. Am I understanding this currently? Thanks again.April 24, 2021 at 10:13 pm #75224
*correctly*April 24, 2021 at 10:25 pm #75225
Unfortunately I don’t have an answer for this. This communication was only sent to members at certain stages of the process.
I think the biggest takeaway here is non priority members sacrifice the ridiculously low rate for increased purchase area ability.April 24, 2021 at 11:02 pm #75226
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