2012 Housing Loan Subsidies (Associated Press)

Nancy Fisher3 said:The law passed and the funding levels were approved. Now we’re just waiting on the official announcement to get things moving.
The Associated Press has been telling banks every single week to get ready because everything starts by the end of THIS week, and they've been saying that for three months now.
This whole situation is becoming a nightmare. The longer they stall, the more people will be ready to jump, which is going to cause a massive rush once the notice finally drops. There will likely be far more disappointed faces than happy ones.
The funds are earmarked for about 500 units, which makes me incredibly anxious because I was turned away last year since the money had already run out.
I just hope I don't face the same thing again.

When exactly did you submit your application, and when did you receive that rejection? I heard rumors that the federal housing agency is supposedly required to issue a decision within three days of receiving an application—which seems completely impossible if they're dealing with a massive volume of requests. There isn't anything mentioned about that specific timeframe in the guidelines or regulations, but the law does specify the window in which the agency notifies the commercial bank of its decision (Article 15):
"The decision regarding credit subsidy approval shall be delivered to the selected commercial bank via electronic means within three days of its issuance."

Went down to the bank yesterday to check on those APN loans, and the teller practically shoved me out the door, telling me I need to get my paperwork together and turn everything in by Monday since they’re supposedly launching next week. Signed the preliminary agreement and wired the deposit today, so now my wife and I are just crossing our fingers that this actually happens...

Emily Alvarez2 said:When exactly did you submit your application, and when did you receive that rejection? I heard rumors that the federal housing agency is supposedly required to issue a decision within three days of receiving an application—which seems completely impossible if they're dealing with a massive volume of requests. There isn't anything mentioned about that specific timeframe in the guidelines or regulations, but the law does specify the window in which the agency notifies the commercial bank of its decision (Article 15):
"The decision regarding credit subsidy approval shall be delivered to the selected commercial bank via electronic means within three days of its issuance."

First off, this forum is an absolute disaster when it comes to administrative issues. I don't think I'll bother commenting anymore; having to reset my password every single time I try to log in is incredibly frustrating... I'm currently on my fourth attempt at a new password just to get in.
Thumbs down!!

I received my official rejection notice after about two weeks. I haven't heard anything about them being required to respond within three days—that doesn't make sense. It's more logical that they would respond once they've actually finished processing the file.
As for when the bank gets the notification, I honestly don't know...

Since I’m about to turn in my paperwork for a home loan, I was wondering if anyone could share their experience regarding the upfront costs? Specifically, how much did you have to pay out of pocket before everything was finalized? I'm thinking along the lines of notary fees, property insurance, and personal life insurance...

Has anyone here used State Farm for their coverage? My bank mentioned that for this specific type of government-backed loan, the State Farm premium has to be paid upfront out of my own savings. It’s calculated at 2.99% of the principal, which feels like quite a significant amount to cover all at once, don't you think?

Thank you

cosmicgull76 said:3.69% for interim financing (4 years), then 5.50% (fixed) for the rest... basically the worst loan ever conceived. And honestly, what kind of bank is this when I have to explain their own damn offer to an employee... The guy just scribbled it down and said, "I'm not really sure, let me check and get back to you"... ridiculous...🤣

Why on earth do you think it's such a garbage deal?
I was actually looking into using that bridge financing option myself. I even stopped by the local Chase branch to look into a commercial loan, and based on my math, this Wells Fargo offer actually looks better and way more stable. I won't have to stress about interest rate hikes or exchange rates because they have those dollar-based options too. It even beats the terms I saw from the Associated Press deals🤷

If you haven't already rushed down to your local Bank of America to file that application, you probably just let another massive opportunity slip through your fingers...

So, I basically only caught a tiny slice of that update about carving out extra funds for subsidies and some of those new schemes they're cooking up. Does anyone actually have the full scoop or any more concrete details on this?

It’s official. The Associated Press has already started processing the requests that were sitting in queue waiting for the increase—as long as the paperwork is in order, they should clear. From what I gather, there’s also room for about 30 new applicants.

Does anyone know if it’s still possible to apply for those subsidies?

I’d like to reopen this discussion:
- For those who took out loans back in 2011 and have now hit that four-year mark, has your bank reached out to discuss future terms?

To be specific, my bank notified me that my interest rates for years five and six will remain unchanged. However, regarding the seventh year onwards, they’ve asked me to decide within a 90-day window and come in to sign a contract amendment.
The seventh year isn't slated to begin until September 2017, which implies I should be signing this amendment nearly 20 months before it actually takes effect. As part of this, I am being asked to choose between a fixed rate of 5.4% or a variable rate consisting of 4.35% plus the 12-month Euribor.
The loan is denominated in Euros.

Is it standard practice to face such an early deadline for signing an amendment that won't even go into effect for another 20 months?
Furthermore, what are your thoughts on these interest rate options—do they seem favorable or poor in the current climate?

Well, I just got my letter from Bank of America with the exact same terms. Honestly, the conditions themselves don't look half bad, but what really gets my blood boiling is this part where I have to cover the notary fees—which are actually slightly lower than what I shelled out when we first signed the contract (since the principal is smaller now). It’s just driving me crazy that I’m essentially throwing away another $667 on notary costs again.

Would you mind sharing which bank offered you these kinds of terms?

JPMorgan Chase

hiddenfox11 said:Well, I just got my letter from Bank of America with the exact same terms. Honestly, the conditions themselves don't look half bad, but what really gets my blood boiling is this part where I have to cover the notary fees—which are actually slightly lower than what I shelled out when we first signed the contract (since the principal is smaller now). It’s just driving me crazy that I’m essentially throwing away another $667 on notary costs again.

Just stumbled onto this thread, so here’s my experience:

I was bracing myself for the rate to jump to the absolute max of 4.95%, but Bank of America actually dropped mine?!?!?! They lowered the interest to around 3.27% for years five and six. They sent me an official notice, but they didn't ask for any new addendums and I didn't have to pay a dime to a notary. I’m just planning to pay off the rest of the principal after year six and call it a day. Hopefully there aren't any more hidden fees lurking around. Those notary scams where they charge you thousands of dollars for five minutes of work? Total robbery. So annoying. 🙂

JPMorgan Chase sucks 😵

Can anyone drop some details about your subsidized loan agreements? I’m specifically wondering if early payoff was an option, if there were any limits on how soon you had to use the funds, and whether they covered half the monthly payment or half the total annuity. Thanks 🙂

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