July 26, 2019 at 8:42 pm #50227
Just for some background information… I entered the program & was qualified 2 years ago. I attended the purchase workshop but I never searched for a home. I realized that I asked for too little and that I needed to pay off some debt to qualify for more.
I re-entered the program in May of this year to qualify for an increase of $350. I was never given an action plan nor anything stating the MRF, payment shock, etc. My file was practically pushed through since I still had everything in order. In a sense I was ever really counseled to say that I’m working with a mortgage counselor. Nonetheless, last week I was qualified again and told that I didn’t have to attend the purchase workshop a second time. I asked where I could find the updated qualification document and was told my file was still being worked on. I was then matched with an in house realtor & I immediately advised her of the new construction neighborhood that I want to purchase in. I advised her that I also intend to buy down points.
She requested a property specific approval and/or information on the buy down amount needed to qualify for the home. Her email was shot down minutes later stating nothing more than I needed to look at something cheaper. The thing is, I have used the Naca Mortgage Calculator & other mortgage calculators to verify affordability. They all have the payment coming out at less than I qualified for with the buy down. Instead of him emailing me the information requested he just flat out said, sorry can’t approve.
This has been the worst process as far as communication is concerned. The information that I need seems so basic & the bare minimum of what I should be supplied with. I’m getting nothing, which has been the case throughout this entire second try. I can’t even get a response to my emails. My realtor somehow can, yet I’m not included on responses even though she CC’s me. I feel like I’m being left out of my own home buying process. Either that or he lied about my qualification increase being approved & is hoping the realtor finds me something for the original amount by chance. Is it too late to switch counselors because I’m at my wits end with this one?July 27, 2019 at 12:23 am #50233NelsontMember
When you use mortgage calculators are you taking taxes and insurance into account? And in a new build community is there a hoa? The other thing is do you currently have the entire buy down in your bank account that naca is using to qualify you? If you were qualified for $1000 payment that’s not a $1000 mortgage. That’s more like a $700 mortgage.July 27, 2019 at 10:37 am #50235
Yes I’m taking all of that into account & even over estimating to be sure. My original amount was 1100 but I live in Texas & taxes are high. They’re 3.1% where I want to build and HOA is $550 yearly. I requested my PITI be increased to 1450. He wants me to find something at 184k with no more than 3% taxes, that’s a PITI of $1350. That’s where my suspicion of my actual approval amount comes in and why I want to see it in writing. As far as your last question I do have the money for buy down in the account that they used to qualify me. I calculated my own MRF and still have plenty left over to buy down. If he feels like I don’t have enough, the least he could do is provide the numbers & show that in writing.July 27, 2019 at 12:44 pm #50236
My realtor was miraculously able to put me on the phone with my counselor right after I posted this. They are both at a purchase workshop. He was more focused on telling me that my PITI is $1450 and what I can do to increase it again. I didn’t ask for this information because I would rather not increase it. I asked what my MRF are according to him and why he feels like I don’t have enough to buy down when I have significant savings. Of course he cut me off and told me that he couldn’t spend much more time on the phone since the workshop was starting. I needed to email him those questions and he would pass them along to the office manager and underwriter. I feel like we don’t even speak the same language at this point. Aren’t MRF calculated by the counselor? Aren’t they calculated before I’m even qualified?July 27, 2019 at 6:08 pm #50238NelsontMember
Yes the mrf ought to be calculated at intake along with your max piti. One thing I can say and it sounds like you’re mc hinted at it is they don’t want you to use all your savings. So if you’re buy down is 5k and your mrf is 5k you can’t have 10-12k you need to have 15-20k. It seems like something like that is an unwritten rule.July 27, 2019 at 7:19 pm #50239Tara585Member
@Nelsont, I know it is going to sound like a crazy question but how is it possible for a person to use their MRF to buy-down their interest rate? I thought those funds were to be used for fees and ernest money? I must be totally confused on all of this.July 27, 2019 at 8:13 pm #50240
@nelsont That makes sense & is precisely why I’m trying to figure out what my MRF amount is. I don’t want to deplete my funds, I’d rather save more if necessary. Thanks for your perspective, I’m glad someone could makes sense of this.
@Tara585 you can’t use your MRF to buy down. He was speaking of them separately. He just used the same amount of 5k in his example.July 28, 2019 at 8:58 am #50242TTrumbleMember
If you are going to be buying down your interest rate, the buy down funds are also included in the MRF. Buy down funds aren’t often figured into MRF at the initial counseling session because the member doesn’t always know if or how much money will be available for buy down at that point. Therefore, once that amount of buy down funds becomes known, the MRF increases by that much.
Speaking of MRF, it should always be more than just the amount for inspections, taxes, insurance, etc. even if there is no buy down. There needs to be reserves including one or two months of mortgage payments that remain in your savings after closing for emergencies as well.
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email@example.comJuly 29, 2019 at 12:09 pm #50260southfloridaMember
@sherrih_tx From personal experience, I recommend you to get approved for the maximum possible which with the NACA program is a monthly payment of 31% of your monthly gross income as long as that 31% combined with your monthly minimum debt payments is not more than 40% of your gross monthly income.
Regarding the calculations of your MC, talk to him and make sure you get an explanation of the amounts and estimates that he is using and explain to him your calculations and why you think you can afford the New Construction that you are looking at.
Also, find out if the Builder would give you incentives which can be used as Seller Contribution to buy down the interestJuly 30, 2019 at 12:24 am #50295lgunter84Member
@sherri_tx I think it’s strange that you weren’t required to prove or show payment shock for the increase. Also, did you get an official alert that you were qualified again? A previous qualification will expire, it doesn’t last a long time because credit and income has to be verified again. I started with NACA and decided to not buy at all and circled back a year later, I had to meet a counselor and get qualified again. I also had to attend the purchase workshop which is where I received my approval.
From my experience, don’t take a counselors word for it. I’ve been told many times something was submitted and it wasn’t. If you don’t have an approval showing your MRF and max purchase payment, it may not exist. I’m currently dealing with the bank challenging my NACA qualification after I’ve been under contract for 52 days. If he’s telling you that you need to purchase a home for less, chances are, the increase didn’t take place. Reach out to the office manager for assistance with confirmation. You have to very proactive and sometimes a “polite pest” to get answers. Everyone is super busy all the time, it’s easy to fall through the cracks
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