unanswered questions by counselor

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    Hello All,

    I am hoping someone could help me. I had my first intake session back in August 2021 I received an action plan for items that were already loaded to my file. Those items were re-uploaded and my follow up appointment isn’t until January 2022. My counselor initially told me to take my MRF that I already have saved and pay off my car loan completely but once I inquired how much of an impact this would make I received no response. Recently I received an email from NACA stating that I have a new counselor and I reached out to my new counselor inquiring about using my MRF to pay off the car loan but no response either. So, I decided to follow up with my new counselor with some additional questions such as
    1. If I use my MRF to pay off my car loan how much of an impact would that make if any?
    2. When determining how much house I can afford do they factor in base rent or rent with utilities?
    3.If I pay beyond the minimum credit card and car loan payment can the overage count towards my payment shock?

    My new counselor responded stating,”I am not able to discuss the details of your file at the moment but I am replying out of courtesy.” She also mentioned that for PSS that is detailed in the qualification workbook.

    So if anyone has any insight I would greatly appreciate it.
    Thank You in advance


    1. To answer your question it won’t have much of an impact. Paying down debt is always suggested and usually preferred as long as you don’t miss your other bills as a result. Basically you will need to write a letter of explanation for the large transaction, highlight it on your bank statement and provide a copy of the loan payoff letter you receive about a month afterward. You would then need to re-save your mrf before you qualify but, really the only reason I can think of this would be suggested is because your DTI is too high and paying off your car loan will increase your home affordability.

    2. Really neither. 31% of your gross base income (without overtime or personal bonuses) is the monthly payment for the house you can afford. Your maximum debt allowed is 9%. For every % above 9 your maximum affordability is lowered an equal amount. Home payment plus car loans student loans credit cards etc cannot exceed 40%. Your current rent only comes into play under 2 circumstances: payment shock, and if you use your current rent as a goal for your mortgage payment.

    3. Yes. As long as you write letters of explanation and show the statements. However, this is assuming paying down debt prohibits you from meeting payment shock. If you are able to meet payment shock and pay debt then do it.


    2. They will use your base for rent as a starting point to determine your affordability. Provided you have paid on time rent for the past 2 years, you will qualify for a house payment equal to your base rent. If you are looking to purchase a home with a payment that is higher than your current rent, they will use your base rent to calculate payment shock. Utilities will not be included in that number. Hope that helps.


    @Nelsont Thank you for your response you truly provided some much needed clarity I will begin to write my LOE’s and gather bank statements.

    Thank you as well for your response and clearing the base rent up. Now I feel more confident going into my next intake session.

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