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

[shardenaypalmer]

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

• This topic was modified 1 year, 10 months ago by shardenaypalmer.

[Nelsont]

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.

[shardenaypalmer]

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.

[Peapod0609]

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%.

[shardenaypalmer]

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?

• This reply was modified 1 year, 10 months ago by shardenaypalmer.

[TTrumble]

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.

[Peapod0609]

@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

[shardenaypalmer]

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

[msob24]

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

[Nelsont]

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.

[Peapod0609]

@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.

[Author]

Posts