Are The NACA Bank of America Lender Matching Grant Funds Exhausted?

When the program buy-down program was established, BOA allotted a specific number of loans for the program through the end of 2019. The program has been so overwhelmingly successful that NACA hit that number four months earlier than anticipated.

Bruce Marks has said this about the situation:

“Bank of America and NACA are in the process of making final decisions regarding the extension of the program, which is likely. The decision regarding the extension should come early next week. Since a 1% reduction in interest rate for free is so significant for Members at or below 80% of the median income in certain MSAs, NACA does not want to stop taking applications with the rate reduction and have Members miss out.”

I would have a difficult time believing the incredible interest rate lender matching grant would completely disappear.

Any members who are past or approaching contract close date, and the seller is not likely to extend, may opt out of this grant if they wish. Even once the program is officially extended, there will likely be processing delays since there will be some catching-up to do. Your counselor will still be able to get your file moving with the higher interest (and still well-below-market) rate without any additional delays.

This is likely to create some inconveniences. It may even cause a couple of purchases to fall through if the sellers are not willing to understand. In such cases though, please remember that it is through no fault of your own and if you followed the instructions from your Purchase Workshop and Workbook, your purchase agreement has a clause that guarantees return of any earnest money under such circumstances.

In short, patience is going to be your best ally. The program has worked too hard for too long to let something like this just come to an end.

I wish I had better news. I really do. I’m just as surprised as everyone else currently going through NACA.
This reminds me of when I purchased my home through the program back in 2015. That is when the current lender matching grant was put into place. There was an awful lot of confusion throughout the entire NACA organization. Nobody really knew exactly what was going on. I was flat out told by my counselor at the time the lowest rate I could get was 1.5%, after Tim had explicitly told me he had spoken with the NACA national director of underwriting that I could in fact buy down to .0625%. That is ultimately what ended up happening, however it was nothing short of a miracle to get there. Tim was extremely helpful to me to obtain this rate. I am forever grateful. If you’re reading this and currently being effected by the new interest rate buy down confusion, hang in there…hopefully better news is around the corner. Unfortunately we are also at the mercy of waiting for this new information from the program. This has caught everyone off guard.