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How much can you save?<\/h3>\n\n\n\n
<\/p>\n\n\n\n
The incentives banks receive can translate into lower mortgage rates for eligible buyers, saving you as much as 0.50% on your rate.<\/p>\n\n\n\n
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Suppose you\u2019re taking out a $450,000 mortgage. At a 7% interest rate, your monthly payment would be around $2,994<\/strong>, while at a 6.5% interest rate, it drops to $2,844<\/strong>. That\u2019s a difference of $150 per month<\/strong>.<\/p>\n\n\n\n Here\u2019s how that adds up over time:<\/p>\n\n\n\n The bottom line: CRA-eligible buyers could get a much better deal on their mortgage, but only if a lender decides to give you a better deal.<\/p>\n\n\n\n <\/p>\n\n\n\n <\/p>\n\n\n\n It depends on either your income or<\/em> the location of your property. <\/p>\n\n\n\n <\/p>\n\n\n\n The CRA is focused on helping low- and moderate-income buyers. For example, in Atlanta, the Area Median Income (AMI) for a family of four is $96,400. If your income is less than $48,200 (50% of the AMI) or $77,120 (80% of the AMI), you\u2019re likely eligible. In Houston, the AMI for a family of four is $90,100, so the income limits are $45,050 and $72,080, respectively.<\/p>\n\n\n\n <\/p>\n\n\n\n If you want to check income eligibility for a specific property, the Fannie Mae AMI Lookup Tool <\/a>can be helpful. This tool allows you to confirm income thresholds for a property\u2019s location and determine if you meet the requirements. You\u2019ll enter the property address to see the AMI for the area and the corresponding thresholds (e.g., 50%, 80%).<\/p>\n\n\n\n <\/p>\n\n\n\n If you\u2019re above the income limits, don\u2019t worry\u2014you might still qualify based on the location of the home you\u2019re buying. Certain neighborhoods, especially those classified as low- or moderate-income (LMI) census tracts, are automatically eligible for CRA benefits, even if your income doesn\u2019t meet the threshold. You can check if a property is in one of these areas by using the FFIEC Geocoding\/Mapping <\/a>System. In Atlanta, many neighborhoods within the I-285 perimeter fall into these zones, and in Houston, areas like the Fifth Ward and East End often qualify.<\/p>\n\n\n\n <\/p>\n\n\n\n It\u2019s a little complicated on the FFIEC website, so here\u2019s a step-by-step guide:<\/p>\n\n\n\n <\/p>\n\n\n\n\n
How do you know if you qualify for a CRA program?<\/h3>\n\n\n\n
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