Tagged: @nelsont @ Ttrumble @ttrumble
February 17, 2021 at 12:07 pm #74319mesiParticipant
We are qualified in the DC area. We have been looking for the last 6 months. Making offers too. We had one accepted offer which fell through due to low appraisal. Since then, for about 6 months now, none of our offers are being accepted even though we are offering way above the list price and willingness to offer cash if appraisal is not equal to list price. It is so frustrating to experience this situations and when you see others seem to have no problem at all. We want to stay in DMV are but home prices are soaring and we cannot afford these homes. We would like a home we love in our price range.
My husband’s job is remote he can work from anywhere. We have seen homes that are in or price ranges and are what we are looking for in other sates. We are considering Dallas or Atlanta area to relocate. We have families there too. So my question is, can we still use NACA to purchase homes in these areas? I am asking because I have heard different answers. We are already qualified, so I am wondering what steps are necessary to purchase home in another state? Do we need to be requalified for the specific state? Please help.
Thank you all so much.
February 17, 2021 at 1:13 pm #74321NelsontMember
- This topic was modified 7 months ago by mesi.
First thing’s first, you cannot offer cash to offset a low appraisal. This is unfortunately a hard rule with no exceptions. An appraisal that is lower than the asking price is an automatic hard stop and bank of america, not naca, will automatically deny the loan. Your only options in that case, without exception are to have the seller lower the asking price to meet the appraisal or to petition the bank to order a reappraisal while also providing documented evidence as to why you think the appraisal should be higher. The seller or buyer cannot have their own appraisals done because that introduces bias (the bank doesn’t do the appraisal either).
Naca does not offer down payments, they offer principle reduction. And while they do the same thing there is a clear distinction. A down payment by legal definition lowers the amount to be financed. Principle reduction also lowers the amount to be financed in the way it used though naca but, the legal definition is instead pre-paying on an unadjusted loan.
Bottom line, the best way to view this is the total cost of the sale (asking price + principle reduction) spent by the buyer cannot be more than the appraisal. Buy down is not figured into this calculation because it is not directly tied to the loan, it is a “fee” paid to bank of america.
So with that all said, not to sound like a negative nancy, yes absolutely you can buy anywhere. There is a catch though. You can only buy in the area in which you are qualified. So since you are qualified in DC you will need to get your file transferred to Dallas or Atlanta and be re-qualified in one of those places.
Your said your husband works remote. Is that permanently? What about you? Is your income currently considered in the qualification? If your current job is not remote then in order for your income to be considered in a new area you must first have a job in that area. You must also not have any gaps in employment of more than 30 days which means don’t quit your current job until you are hired in Dallas or Atlanta.
If you plan on staying with family make sure it’s OK for you to stay with them indefinitely until you buy your house unless you rent an apartment which may or may not require a history of rental payments to qualify.
I know I said a lot of things that can deter you. Don’t think that. It is possible and it is done all the time. Usually though it’s done by people who are relocating due to work and not because they want to uproot (which usually requires the uprooting first). I just want to make sure you have the necessary information so you can the decision that’s right for you.February 18, 2021 at 1:56 pm #74336mesiParticipant
@nelsont. Thank you for quick response.
I am currently working but my income is not considered for the loan.
My husband’s work is remote due to COVID but there is a possibility that it will become permeant with occasional travel to his clients location. All he need to do is change his base from DC area to Dallas. He has already spoken to his supervisors and have been told that they will change his base once he is ready.
We want to purchase in Dallas area then move. We are sure that his job will not be affected by the move. We have actually seen a couple of homes that are quick move ins and will be ready in a few weeks. We want to submit an offer soon.
we are grateful that our Our MC has just gotten us in contact with the Dallas office and our file will be transferred, I hope, soon. They have asked us to provide documentation indication Income stability in the area. What would that be? a letter from the employer or pay stubs and job verifications will work?
Thank you all so muchApril 1, 2021 at 11:13 am #74858emhacyParticipant
I hope it’s ok for me to jump in on this topic with a related question.
I’m a Wedding photographer based in FL. I’ve been trying to shift into the New England market for a couple of years but was temporarily derailed by COVID. However, my plan is to manage my schedule in 2022 so that I am able to move and simply travel back to FL for any weddings I have here. I am planning on continuing to book weddings in FL, especially in the winter, and I expect that my ratio of northern weddings to Fl weddings will shift the longer I am actually living up north. It will take a while for this to happen, but my income should not be reduced because I can always fill my calendar with more Fl weddings if I need to fill in some gaps. Plenty of wedding photographers travel for most or all of their weddings.
I would really like to avoid the HUGE expense of having to first move into a rental, and then wasting money on rent. I feel my job situation is different than most when it comes to relocation. I’m also worried about even being able to find a suitable rental that is affordable to get established there in the first place – my friends who own their homes all have mortgage payments that are half of what I pay in rent.
My time is really limited and I don’t want to get too deep into this and get my hopes up if the requirements for relocation are going to make it not doable for me.
I’d really appreciate any input!April 1, 2021 at 12:17 pm #74861TTrumbleMember
Your job situation is indeed different, but not in the respect you are hoping for.
The issue that will arise here is that since you are self-employed and don’t appear to have a specific overwhelming need to relocate your business, this is going to be a move of personal choice rather than one required for your work. That will require establishing yourself in the new location before we will be able to qualify you.
Traveling back to Florida on a frequent basis to shoot weddings isn’t in your favor either. Proximity to work is a factor NACA takes rather seriously when buying a home. If it’s more than about 90 minutes by car, we are going to have questions about the wisdom of the move.
I hate to disappoint you, but the things that you anticipated making the process easier for you are actually going to have the opposite effect. My suggestion is to take a serious look at your Plan B.
Online Operations, NACAApril 1, 2021 at 1:00 pm #74864emhacyParticipant
Thank you for your response. There are a lot of reasons not to stay in the gulf coast of Florida, one reason being that the housing market here is extremely dysfunctional and now is not a good time to buy here. But the main reason for moving has to do with health reasons, both physical and mental. Because I am uninsured, I don’t have say, a note form a doctor. But the climate here is very difficult for me. I’v wanted to move for 20 years but was held here by a custody agreement and now I finally am free to move.
Would I have to basically show my work calendar and prove that i have x number of weddings there and only x number of weddings here? Would that just be subjective decision made by whoever is assigned to my file? What would happen if I were to book weddings all over the country? I don’t think that traveling for a job once or maybe twice a month is the same thing as commuting more than 90 minutes by car 5 days a week. It sounds like my actual individual circumstances would not be taken into account.
What if I wanted to buy here in FL but my weddings in New England exceed my weddings in FL? Would I not be able to qualify here in FL unless I stop booking weddings up north? Are people who travel 1-2 times a month for work automatically disqualified?
This is the beauty of what I do. If I wanted to, I could work weddings in a different state every month. I only have to be gone for 3 days. That’s 3-6 days a month of being away. Again, this is COMPLETELY different from a 5 day a week commute. As it stands, many of my weddings are 90 minutes away and I travel more than 90 minutes for some of my shoots. Where WOULD I be allowed to buy a house?
This is so disappointing, as I once again feel like I fall through the cracks and NOTHING works for me. I’ve paid landlords $248,000 and have nothing to show for it. And now, the career that I worked so hard for as a single parent is going to work against me and prevent me from buying a home, or I will have to choose between buying a home or making a location change for my physical and mental health. Again, this is so disappointing because I thought for once I found an option that looks at the whole picture and takes individual circumstances into account. I am my own boss. Why can’t I tell myself I have to move for work? Once again, being self employed makes me unable to access the things others can.
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