The Official NACA mortgage thread

[Anonymous]

Tim I went to the seminar and it was great!

Will Paypal transaction trail work for rental verification?

This month I am starting to use Chase BillPay to cut a check
to my landlord for easier tracking but does the previous
Paypal transactions not get considered even if they show up in my 
bank statements (and paypal transactions?)

From Paypal

Paid withJPMORGAN CHASE BANK

Also if this is NOT acceptable, will they make me wait 12 months until they see 12 bank checks made out 
to my landlord, on time and for rent? ARGGHH   many ppl dont use checks anymore haha.

[Anonymous]

Hello smarzig,

I can't give you a definitive answer on that one.  It will depend on several factors including to whom the PayPal payment is designated and the timing of the transactions.  Only your counselor will be able to tell you after reviewing the documents.  If the PayPal payments are not acceptable, you will indeed have to build up a 12 month history of on time rental payments via the Chase BillPay system.

I suspect that the PayPal and bank statements may well be sufficient, but I have no way of saying for sure as it requires a physical review of the statements.

Tim Trumble

Online Operations, NACA

ttrumble@naca.com

[Anonymous]

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@Anonymous wrote:

Hello smarzig,

I can't give you a definitive answer on that one.  It will depend on several factors including to whom the PayPal payment is designated and the timing of the transactions.  Only your counselor will be able to tell you after reviewing the documents.  If the PayPal payments are not acceptable, you will indeed have to build up a 12 month history of on time rental payments via the Chase BillPay system.

I suspect that the PayPal and bank statements may well be sufficient, but I have no way of saying for sure as it requires a physical review of the statements.

Tim Trumble

Online Operations, NACA

ttrumble@naca.com

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Oh boy.. and many times I waited for my roommates portion of the rent until I sent mine in as 1 payment (which a breakdown note ) per the Landlords instructions he didnt want 3 payments but one. Ah well... Everything else is in order

• 12 years solid work history with same company
• no late payments or anything neg on my credit report

[Anonymous]

Hi NACA. I got the first email w. a link. When I go to the link it ask me for my ID which no one has given me.

Is there a default algorythm or something?

[Anonymous]

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@Anonymous wrote:

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@Anonymous wrote:

I wish you luck receivingthepromise my wife and I will start the program at the beginning of Jan. to hopefully complete it by Dec. 09. I have many questions and please feel free to answer no matter how long the explanation because this will help us in our quest. I've been to the website but I feel it's better to get advice from someone who's been through the program. Our credit is pretty good so we hope this will eliminate a lot of hassles in the beginning. My questions are:

1. How long does the entire process take? Not sure of the entire time. It depends on your exact situation i.e credit issues, budget issues, savings. My advice make sure that everything that has affected your credit in the past 24months have been paid or addressed and you have proof. If you plan to start in January setup a monthly budget now so you are aware of what you spend each month before you go in. If you are saving now keep it going have a pattern you can show. My consultant also advised finding an account with a good interest rate so you can gain good interest while you save.

2. Is it true that at closing certain monies you would normally be paying at closing will be used to buy down your interest rate? You still pay the same closing cost but money that you would use for a down payment can be used to buy down points. Also any funds that the seller donates can go toward buy down.

3.At what point do you start looking, and how long do you have to look once approved? You can only start looking once you become NACA Credit Approved. You go to a workshop on the Thursday after you are approved and get the letter showing you are approved and can start the search. The approval is good for 3 months if you are still searching in 3 months you have to get reapproved. This should be easy if you keep your consultant updated with paystubs and bank statements until you close, as they ask you to do.

4.Once you find your home can you negotiate with the seller to help buy down your interest rate? Yes, you can outright tell them its going toward your buy down or the can "pay" toward closing cost. You can also use downpayment assistance programs to buy down point too.

5. Finally can you give me a detailed overview of the process from beginning to end such as what happened at initial meeting with counselor to the point you're at now in the process? First, about one week before Saturday workshop I received an email for home save people. This email will give you a link to start the sign up process and get your NACA ID#. It will also allow you to submit budget, bank, rental, employment information. You can also schedule your intake appointment (call the office to confirm that time slot is available some offices). The intake took about 2 hours. Even if you upload the documents to the website you still need to take the office hard copies so they can be uploaded in the computer. My advice is look at page 30 of the work book and bring a copy of everything requested. After the consultant uploads the paper work they will then go over your credit report. If you have any baddies -even paid off- they want you to provide a statement and proof. Don't have anything on your report that has not been paid or is on a payment plan with proof. All my baddies had been paid so there was no problems in he area. Next you will go over your budget. They are able to pull up the one you submit on the website. If you have any amounts that look to low the system will prompt the consultant to ask about it and enter your explanation. My advice here have proof for the amounts her if you have your own budget that you already go off tell the consultant; if its something like utilities provide bills that show the amount you pay each month. Then you will go over the amount of money you want to spend on your home. They will tell you the amount for different types of properties in your area, and the amount of MRF(minimum required funds) you will need for each. I had my consultant give me the information for properties from SFH to fourplex. Another small word of advice if you plan to use money from a 401k or retirement account  have the paper work showing the amount in the fund and how much you can take out; also need to show that this will not be a loan that has to be paid back. I have learned now that if you make any deposits that are not from a payroll check have documentation show where these funds have come from such gifts or refunds. If you have all this paperwork when you go to your intake meeting you will be ready to be submitted to within 72 hours. The consultant has to get employment, and rental verification so if you have a fax number give it it will make the paper work go faster. Once you are submitted to the UW you wait for their response. What I have noticed is that the UW reviews accounts on Tuesdays so by Wednesday you should have an answer. I am at a point now where I just have to wait. I have submitted all the documents that the UW has ask for and will need to get me approved. Because the UW ask that I show two months bank statements with no payday loans I have to wait until November to resubmit. Each payday I scan and upload a copy of my paystub not only to NACA website but also to my consultant. Just send him an update email. Also any updated bank statements I get. My consultant has been okay with communicating back to me and answering any questions I may have. I did let him know during my intake meeting that I had no problem calling and emailing if/when I have questions. The process is not easy and can be very trying you just have to focus and commit yourself. I have found out by reading on the internet (Google search for NACA mortgage) that before you close they expect you to have completed some "participation actives" before you can close on your loan. I think I will take to my consultant about that and find out what they will need me to do.  

I know this is a lot to ask but we're committed to the program and I know your experiences will help us tremendously. We need all the help we can get so please all chime in.

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Pay your rent on time and by CHECK!!!

[Anonymous]

Hello smarzig,

If you have not received your NACA member ID number one week after attending a workshop, contact NACA Member Services at 425-602-6222 Monday through Friday 8:30 a.m. to 5:30 p.m. Eastern Time.

Tim Trumble

Online Operations, NACA

ttrumble@naca.com

[Anonymous]

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@Anonymous wrote:

Hello smarzig,

If you have not received your NACA member ID number one week after attending a workshop, contact NACA Member Services at 425-602-6222 Monday through Friday 8:30 a.m. to 5:30 p.m. Eastern Time.

Tim Trumble

Online Operations, NACA

ttrumble@naca.com

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I got it. for some reason it went to junk mail. TYVM!

I heard the NJ office is backed up towards the end of the year but CT said they would at least get me "started" so that is good.

[Raiderguy8]

Tim,

I have spent quite a bit of time looking on the NACA forums and the NACA website and have not found the answers to two questions.  The Payment Shock Savings, is it the difference between my current rent and the desired principal and interest or the difference between my current rent and the principal, interest, taxes and interest?  Also, for the Payment Shock Savings how is the month to month increase calculated when I get paid every other Friday?  Some months, like April 2016, had three pay periods.  My ending April balance was considerably higher than my ending balance in March but I had a drop in ending balance for May because a lot of my bills were paid out of that third paycheck I got at the tail end of April.  I still could have saved money in the month of May but the expenses would be more than my income.  I cannot wrap my head around showing the savings when April had an "inflated" ending balance because of the third paycheck.  Any guidance would be helpful.

[Anonymous]

Hello Raiderguy8,

Think of it this way… When you pay your rent to your landlord, you know that it is going to be enough for him to pay his taxes and insurance on the property, right? After all, the moneyfor him to pay that isn’t going to come out of thin air. You actually pay it as part of your rent. Therefore, it makes sense that your Payment Shock should be for the difference between your current rent and the full Principal, Interest, Taxes, and Insurance payment for your home.

How often you are paid has nothing to do with your Payment Shock. Payment Shock is based strictly on the difference between the total of the ending balance of your bank statements each month. The March balance must be at least X dollars more than February. April’s must be at least X dollars more than March. May’s must be at least X dollars more than April’s, and so on. If it’s more than that, fantastic! But the next month will still have to be at least X dollars more no matter how much you saved last month.

If you are having trouble wrapping your head around it, it’s almost certainly because you’re trying too hard. Each month’s balance must be at least X dollars larger than the previous month’s balance, period. It’s just that simple. No ifs ands or buts. Don’t overcomplicate it.

Tim Trumble

Online Operations, NACA

ttrumble@naca.com

[Raiderguy8]

But surely you see that the balance at the end of the month/statement where a third paycheck was received would lead to a balance that would be unsustainable the next month.  I would be paying expenses out of that third paycheck in the next month which will cause my balance to lower.  I would have to spend virtually no money until my next paycheck to maintain that balance.  When I look at my statements from March through May, I had a large jump from March to April and a decrease from April to May.  The balance at the end of May was more than enough to cover two estimated payment shocks when compared to the March statement balance but I would have to start over with NACA because there was a decrease from April to May.  I didnt miss any payments, nothing was late, didnt live extravagantly.  I just paid my bills.  This would occur every three months when there is a three paycheck month.