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05-19-2017 09:55 AM
While it is not an absolute requirement that you both attend the workshop, this is going to likely be the biggest and most important purchase of your lives. There really is not a good reason for only one of you to go considering the importance of what you are about to do as a family.
The NACA program is designed to help primarily low and moderate income family achieve affordable and resopnsible home owenrship. As such, there are only two cases in which you may exceed the regional Maximum Acquisition Cost. 1) Your household income is 80% percent or less than the median income for your Metropolitan Statistical Area (MSA) in which you are buying as determined by the Federal Financial Institutions Examination Council (FFIEC), or 2) you buy in a Census Tract in which the median income is 80% or less of that for the MSA.
It's not quite as complicated as it sounds, and your NACA counselor will help you determine if you qualify to have the Maximum Acquisition Cost waived during your initial counseling appointment.
Online Operations, NACA
06-02-2017 10:50 AM
Well it has been 3 days since we closed on our home and I can’t express how grateful my family and I are for NACA.
The community here is very supportive and I can’t thank you all (especially Tim) for all the guidance and encouragement throughout this process. The home buying experience can be stressful no matter what company you go with, but I found our NACA journey to be quite painless and more importantly insightful. I say insightful because it forces you to focus on where you are spending your money and ensures you have the tools to be set-up for the long run.
I’d thought I would give a timeline of our journey and then some tips that might help those going through the process or contemplating it.
11/5 Attended Workshop
1/23 1st Intake Appointment (We asked for later date to get paperwork ready)
2/22 NACA Qualified
2/24 Attended Purchase Workshop
2/24 – 3/31 Waiting on landlord (Plan was to buy existing house we were renting, landlord was less than responsive)
4/1 Started looking for houses
4/11 Put in Offer (Asked for closing costs to help with buy down…more in tips)
4/12 Offer Accepted
4/12 Credit Access submitted (Lots of back n forth with NACA underwriter…more below in tips)
4/19 Home Inspection / Termite / Radon
4/25 Repair List from HAND / HAND cleared repairs (Just some cosmetic repairs that didn’t require HAND involvement)
4/26 Got seller concession for repair list
4/26 Appraisal requested
4/30 Credit Access Approved
5/1 Bank Application (Lots of back n forth with BOA underwriter…more below in tips)
5/3 Appraisal back higher than purchase
5/4 Home Owners Insurance purchased
5/23 Clear to Close
5/25 Closing Disclosure emailed
We wanted to wait a couple months for our 1st intake appointment with the goal of being NACA qualified almost immediately. We took that time to look at our spending habits and start working on a realistic budget…very surprising to see how much waste we had. Once we decided to stop waiting for landlord of current house, the process really flew. I knew what to expect along the way because of the support here and made sure to stay in close contact with my MC. I never let more than 15 mins go by without responding to an email from my MC and always took the approach that if he was working my file at that time, I wanted to keep him working on it. When signing the purchase contract for the house, I felt that 45 days would be sufficient given the other timelines I have viewed here over the past 9 months…we missed that by only 3 days, which I thought was a HUGE win! Most of our wait time was on the part of Bank of America underwriting and conditions they asked for…one in particular that was so odd, that both MC and I couldn’t believe it. Had BOA listened to MC explanation from first response and cleared the condition, we would have closed 2 weeks earlier than my contract date. Overall I am thrilled to have this part done and really appreciate all that NACA has done…people can not believe my interest rate and No PMI, No Down Payment, No Closing Costs!
Go to that 1st Intake with mindset of getting qualified. Upload all your docs into the Web File
Stay on top of your file. I’d hate to see how many times I logged into my Web File for updates
Be prepared – Create a folder and store all documents that are outlined in Handbook. Keep scanned copies online for easy emailing
Use Internet Explorer not Google Chrome for statements. Underwriters require the URL from website and Google Chrome for me wouldn’t save URL no matter how I tried to print….Internet Explorer worked great.
Use a NACA realtor from your office. They have experience and know how to work your file. My realtor thought asking for closing costs in this market was a no/no but I was adamant that I wanted to use funds for buy-down, which he didn’t understand.
Stay patient – You’ll be asked for same things multiple times, this helps your MC get what needs faster.
Relax – Regardless of where you get a mortgage, once you hit the Qualification stage it’s similar to wherever you go. Delays are going to be a part of it and it’s okay to be frustrated…just be the polite pest when needed. ***Taking bagels or donuts to office helps too***
Stop your credit card spending – I was a rewards chaser and would pay with credit card for everything and then “try” to pay off balance in full. Don’t treat credit cards as funds you have….stick to your budget and add no debt.
Last Tip and Biggest for me – After you are qualified, find a home quickly and get under contract. My delay in Credit Access phase was partially because I waited almost 2 months after being qualified to signing a contract…essentially I had to be “Qualified” again. If you sign a contract just after being qualified, you can imagine how much smoother the process is. I have no doubt that I would have closed within 28 day goal if I had done that. Also, if you are looking at houses needing repairs its best to request a longer closing deadline…your adding more to the process with HAND and contractors/bids/reinspection…so keep that in mind.
That’s quite the ramble, but I loved reading success stories and it is great to have my own.
Good Luck and stay with it!
06-02-2017 11:48 AM
Thank you for the very kind words about my being here to help.
You provide so much great advice in your post that I won't go into detail, but I particularly like that you promoted the "polite pest" aproach. It really does work!
Enjoy your home!
Online Operations, NACA
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