Priority Member 80% Median Income? 2020 Median Income Release?

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  • #62693
    shardenaypalmer
    Participant

    Hello all, I have two questions.

    1. To be considered a priority member do you need to be 80% below the median family income or just simply below the median family income?

    The NACA purchase workshop booklet only identified a priorty member as:
    Priority Member: Low-to-moderate income Members (i.e. borrowers and co-borrowers) whose combined
    income is less than the median family Income for the MSA where they are purchasing a home.

    2. When will the 2020 Median family incomes be released. And historically what month are they released?

    Thank you,

    Shar

    #62698
    Nelsont
    Member

    1. 100% or below to be considered priority. The 80% mark is to take advantage of special offers and grants from Bank of America which are currently in limbo.

    2. There is no set date but, the FFIEC kind of follows a school/government fiscal year schedule. Historically the numbers have been released in mid to late summer. The 2019 updated incomes was not released until the end of August so I would expect 2020 numbers to be released around then as well. You and NACA will be using 2019 numbers through Q2 and into Q3 of 2020.

    I think an easier way of looking at it is unless you buy a house toward the end of the year then use last year’s numbers.

    • This reply was modified 1 year, 10 months ago by Nelsont.
    #62706
    shardenaypalmer
    Participant

    Thanks Nelsont for the quick response. I’m aware of the bank of america grant- 80% or below MSA to qualify.

    I also believe its 100% or below the MSA to be a priority member, if it was anything other the purchase work shop book would specify the way everything else is specified. Thanks for your confirmation.

    #62709
    Peapod0609
    Member

    Correct, at or below 100% of the median income for the MSA you’re purchasing in makes you a priority member. Once you reach 80% or less of that number, there is a grant that reduces your interest rate. I received this grant and it took off 0.50% straight off the interest rate, which was nice. It was a full 1% earlier this year but they ran out of grant funds and eventually had to settle on 0.50% for BOA. I know they are trying to renew it for 2020 but that is still an ongoing situation and is not finalized to my knowledge.

    Also, the FFIEC MSA income amounts typically get released around August/September or so. I believe the first week of August is when they got updated last year. Looking back on my emails, it was 8/06/19 where I noticed the 2019 ones got updated, and I checked their website like every day once August hit haha. It was very important to me because my wife and I were like at 81-82% of the 2018 MSA we were buying in but the 2019 numbers went up quite a bit so that put us comfortably below 80%.

    #62712
    shardenaypalmer
    Participant

    Thanks for the reply @Peapod0609, is it confirmed it’s 0.50% now. Do you know anyone who closed recently and received it? I read a lot of discussions about it but anyone receive it in the last 30 days?

    #62728
    TTrumble
    Member

    Hello shardenaypalmer,

    1 – A priority member is one whose household income is less than 100% of the median income for their MSA (Metropolitan Statistical Area) as defined by the FFIEC.

    2 – An income of 80% of the median qualifies you for the Bank of America grant, which is presently a 0.5% rate reduction. You may contribute up to five points total toward buydown, which includes contributions by the seller.

    This means you can potentially get a 30-year loan to as low as 1.625% and a 15-year loan all the way down to the lowest rate possible of 0.125%.

    3 – As others have noted, the MSA statistics are usually updated in early September.

    Tim Trumble
    Online Operations, NACA
    ttrumble@naca.com

    • This reply was modified 1 year, 10 months ago by TTrumble.
    #62744
    Peapod0609
    Member

    @shardenaypalmer yes I closed myself on 11/15 and received the grant for 0.50% off. And per Tim above, it looks like it is still in effect for MSA’s that do apply. Here is the list of qualifying MSA’s that Tim posted back in June, I am not sure if this is still the same list or if any have been added or subtracted. A final decision on whether or not you qualify for the grant is done by your MC at the bank app submission stage.

    PHOENIX-MESA-SCOTTSDALE AZ

    ANAHEIM-SANTA ANA-IRVINE CA

    FRESNO CA

    LOS ANGELES-LONG BEACH-GLENDALE CA

    OXNARD-THOUSAND OAKS-VENTURE CA

    RIVERSIDE-SAN BERNARDINO-ONTARIO CA

    SACRAMENTO-ROSEVILLE-ARDEN-ARCADE CA

    SALINAS CA

    SAN DIEGO-CARLSBAD CA

    SANTA CRUZ-WATSONVILLE CA

    SANTA MARIA-SANTA BARBARA CA

    DENVER-AURORA-LAKEWOOD CO

    BRIDGEPORT-STAMFORD-NORWALK CT

    NEW HAVEN-MILFORD CT

    WASHINGTON-ARLINGTON-ALEXANDRIA DC/VA/MD/WV

    WILMINGTON DE/MD/NJ

    FORT LAUDERDALE-POMPANO BEACH-DEERFIELD BEACH FL

    JACKSONVILLE FL

    MIAMI-MIAMI BEACH-KENDALL FL

    ORLANDO-KISSIMMEE-SANFORD FL

    WEST PALM BEACH-BOCA RATON-DELRAY BEACH FL

    SAVANNAH GA

    CHICAGO-NAPERVILLE-ARLINGTON HEIGHTS IL

    LAKE COUNTY-KENOSHA COUNTY IL/WI

    BOSTON MA

    CAMBRIDGE-NEWTON-FRAMINGHAM MA

    BALTIMORE-COLUMBIA-TOWSON MD

    SILVER SPRING-FREDERICK-ROCKVILLE MD

    DETROIT-DEARBORN-LIVONIA MI

    CAMDEN NJ

    NEWARK NJ/PA

    ALBUQUERQUE NM

    LAS CRUCES NM

    SANTA FE NM

    LAS VEGAS-HENDERSON-PARADISE NV

    BUFFALO-CHEEKTOWAGA-NIAGARA FALLS NY

    NASSAU COUNTY-SUFFOLK COUNTY NY

    NEW YORK-JERSEY CITY-WHITE PLAINS NY/NJ

    MONTGOMERY COUNTY-BUCKS COUNTY-CHESTER COUNTY PA

    PHILADELPHIA PA

    AUSTIN-ROUND ROCK TX

    DALLAS-PLANO-IRVING TX

    SAN ANTONIO-NEW BRAUNFELS TX

    RICHMOND VA

    VIRGINIA BEACH-NORFOLK-NEWPORT NEWS VA/NC

    SEATTLE-BELLEVUE-EVERETT WA

    TACOMA-LAKEWOOD WA

    #62946
    shardenaypalmer
    Participant

    @peapod0609 and @TTrumble thank you both so much for the clarification and confirmation. You’ve both been extremely helpful!

    #63332
    msob24
    Member

    Is the median income defined strictly by the MSA (Metropolitan Statistical Area) or more narrowly based on FFIEC (2019 Estimated Tract Median Family Income) found on their website? There’s a big difference in my area between MSA and Tract Median Incomes. Please advise…

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

    #63338
    Nelsont
    Member

    Median income is defined by MSA. The neighborhood tracts are for non priority members. Those who have an income above 100% of the MSA have to buy in a tract that is below 100% of the MSA.

    #63341
    Peapod0609
    Member

    @msob24 the number you are looking for on the geomap is the “2019 FFIEC Estimated MSA/MD/non-MSA/MD Median Family Income” number.

    The one that says “2019 Estimated Tract Median Family Income” will only pertain to you if you are a non priority member. So as long as you make less than the MSA family median income, you need not worry about the Tract Family Income numbers.

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