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Contributor
ProudMomof5
Posts: 81
Registered: ‎11-05-2008
0

Re: The Official NACA mortgage thread

I might have to give up on NACA because when I called the office I was told I have to wait until my Chapter 13 is discharged.  When I spoke to someone else with NACA at a different office he told me the guidelines where the same as FHA, that I only have to wait a year.

New Member
Tanya007
Posts: 5
Registered: ‎01-30-2012
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Re: The Official NACA mortgage thread

[ Edited ]

I'm not sure if anyone visits this forum any more. I would like to know what is included in the amount needed to bring to closing?

Can anyone share their experience and break down the total they paid?

 

I don't expect a response, since the thread seems to be dead-  Thank you! :smileyhappy:

Valued Contributor
chasmith
Posts: 1,062
Registered: ‎05-26-2010
0

Re: The Official NACA mortgage thread

[ Edited ]

My deposit was more than I needed at closing so I got a check back...  Actually the funds went to buy down the rate further, so I got a 100% loan, minimal costs to close, and an interest rate under 3% on a 30-year fixed basis.

 

NACA pays everything except inspections, taxes and insurance.  Insurance is prepaid for one year (I paid for my policy and provided proof).  Taxes are pro-rated depending on your closing date and the dates in your jurisdiction, so if the seller is paid through he end of the year you owe the prepaid portion back to them, and your escrow account will take some advance taxes - where I closed it was six months taxes prepaid.

 

 I found it a little confusing, because on my Good Faith Estimate the lender listed out a lot of costs.  At closing those were all marked "paid by lender".  I guess I was a little skeptical but NACA really came through and all closing costs except inspections, taxes and insurance (which are escrow items not closing costs) were covered.

BK7 Filed 8/11/2009 Discharged 11/23/2009. Purchased new home 4/11/2012
Starting Score:11/16/2009 EQ 566 11/16/2009 TU 538
Interim Score: 12/27/2012 EQ 683 09/17/2012 EX (lender) 670 1/01/2013 TU 701
Current Score: 11/06/2013 EQ 708 11/06/2013 EX 702 11/16/2013 702 11/06/2013 TU 729
Goal Score: EQ 740 EX 740 TU 740
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superdesi
Posts: 75
Registered: ‎08-16-2008
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A question about the HAND Department

I just needed some guidance regarding the HAND department since the new official NACA forums are not that great (i liked the old system better). We found a house that we like. We made an offer and it was accepted. The only problem is that our offer is the maximum loan we can get from NACA. We had the inspection done and it came back good except for a few minor items which amount to about $3K. Since we are at our loan maximum, we cannot rollover the costs of the repairs to our mortgage. My question is, if the seller refuses to make repairs, can we tell NACA that we will fund the repairs from our own funds when we get to closing? How do we get the clearance from HAND? Do I still need to get bids from contractors? I'm just trying to move this process as smooth as possible and think ahead. Thanks in advance. Desi.
_____________________________________
TU: 705 [10/20/10]
EX: ???
EQ: 705 [10/18/10]
CK: 700 [11/03/10]
Valued Contributor
chasmith
Posts: 1,062
Registered: ‎05-26-2010
0

Re: The Official NACA mortgage thread

[ Edited ]

My situation was different because I bought new construction but here's my take...

 

First, are you using a NACA savvy buyers' broker?  That could be helpful, but if you already have a buyers' broker you're probably stuck.  But your buyer's broker should be advising you and handling negotiations with the seller through the seller's agent.

 

Don't get too emotionally wrapped up in one property.  Convey to the seller the facts that you are at the maximum you can afford and you will walk if they don't cover the repairs.  This is still a buyers' market and unless there's something truly unique going on the seller should make the repairs, they will have to for any other buyer.

 

If you can't get the seller to cover the repairs, you'll have to have the funds proven to be available in addition to your other required funds.  You'll probably have to have bids from NACA approved contractors  to support the amount of funds you say will be needed.  Those funds will be in escrow the same way funds from the mortgage would be escrowed.  HAND will release payments to the contractor(s) after the work is done and inspected.

 

 

BK7 Filed 8/11/2009 Discharged 11/23/2009. Purchased new home 4/11/2012
Starting Score:11/16/2009 EQ 566 11/16/2009 TU 538
Interim Score: 12/27/2012 EQ 683 09/17/2012 EX (lender) 670 1/01/2013 TU 701
Current Score: 11/06/2013 EQ 708 11/06/2013 EX 702 11/16/2013 702 11/06/2013 TU 729
Goal Score: EQ 740 EX 740 TU 740
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superdesi
Posts: 75
Registered: ‎08-16-2008
0

Re: The Official NACA mortgage thread

Thanks chasmith. So lets say after closing, NACA would still keep the repair funds in escrow until work is completed to their standards? So does that mean that even after closing, I don't have official clearance from HAND unless repair work is completed?
_____________________________________
TU: 705 [10/20/10]
EX: ???
EQ: 705 [10/18/10]
CK: 700 [11/03/10]
Valued Contributor
chasmith
Posts: 1,062
Registered: ‎05-26-2010
0

Re: The Official NACA mortgage thread

I can't say for sure, as I recall NACA describes this process in detail on their website.

 

I believe NACA is seeking rock solid assurance that the repairs will be made (and FHA would do this as well).  This is for your protection.  So they will want to see the bids, contracts and funds for the repairs in order to clear you to close. 

 

HAND monitors the execution of the repairs.  They will expect the follow up inspection showing repairs complete, and HAND approval is needed to release the funds to the contractor.

 

This is all needed where the seller doesn't complete the required repairs before closing, which is what I believe should happen here.

BK7 Filed 8/11/2009 Discharged 11/23/2009. Purchased new home 4/11/2012
Starting Score:11/16/2009 EQ 566 11/16/2009 TU 538
Interim Score: 12/27/2012 EQ 683 09/17/2012 EX (lender) 670 1/01/2013 TU 701
Current Score: 11/06/2013 EQ 708 11/06/2013 EX 702 11/16/2013 702 11/06/2013 TU 729
Goal Score: EQ 740 EX 740 TU 740
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Contributor
superdesi
Posts: 75
Registered: ‎08-16-2008
0

Re: The Official NACA mortgage thread

Thanks very much. I will let you know how it goes.
_____________________________________
TU: 705 [10/20/10]
EX: ???
EQ: 705 [10/18/10]
CK: 700 [11/03/10]
New Member
hall1234
Posts: 2
Registered: ‎02-29-2012
0

Re: The Official NACA mortgage thread

I'm wondering if anyone has information on the NACA service areas.  We are interested in purchasing in a town that is not listed but I think I read somewhere that as long as you can travel to the workshops you can purchase anywhere you want.  Any information on this would be appreciated.  Thank you.

Valued Contributor
chasmith
Posts: 1,062
Registered: ‎05-26-2010
0

Re: The Official NACA mortgage thread

[ Edited ]

That's generally the case.  Why not reach out and ask NACA based on your specifics.

 

I closed my financing last April.  I went to an initial workshop, and have volunteered at many in the Baltimore area, attended by folks from Washington DC, Maryland and Pennsylvania.  Attendees from the other states were updated with their local offices.  I believe the only problem would be if NACA isn't licensed in your state.

BK7 Filed 8/11/2009 Discharged 11/23/2009. Purchased new home 4/11/2012
Starting Score:11/16/2009 EQ 566 11/16/2009 TU 538
Interim Score: 12/27/2012 EQ 683 09/17/2012 EX (lender) 670 1/01/2013 TU 701
Current Score: 11/06/2013 EQ 708 11/06/2013 EX 702 11/16/2013 702 11/06/2013 TU 729
Goal Score: EQ 740 EX 740 TU 740
Take the FICO Fitness Challenge

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