The Official NACA mortgage thread

[Specialnupe]

Update 9/25/2010

My file was sent to underwriting on 9/16/2010.

I got an "actual  phone call " this morning from my NACA counselor. He says that everything came back fine except 1 thing (of course).

The underwriters want a letter of explanation as to why my rent payments fluctuated from month to month.

The answer:

I pay my water/sewer bill in my rent check. The apartment complex sends me a bill for a different amount every month. My base rent is $682/month. But my rent payment w/ water is anywhere between $700 - $710 per month.

So today, I went to my leasing office, got a letter of explanation and got them to print out their accounting ledger for all my payments the last 2 years... which shows a breakdown of rent and water/sewer. I went to KINKO's got those documents scanned into a .PDF.  Then I emailed all documents directly to my NACA counselor.

So now my counselor says that he will submit everything again on Monday.

So now I have to wait some more.....

Anyway tomorrow I'm going out with my Realtor to look at some houses. IT's a great time to buy in the Atlanta Area!!!

[Errin1]

I wish you luck and best wishes nupe. At one time in my life I was thinking of using  NACA's help in my home ownership quest. I went to the initial meeting back in 2007. Started my budget and the whole 9, but they were so unorganized and inept in dealing with things....not to mention the home prices in my area were IMHO too high for my liking I said goodbye to NACA.

[zep]

Hang in there Nupe. At the point you are it should only take less than a week. I am a real state agent and the purchases my clients have made are the best.

Granted, if you are short of patience or have other alternatives, you may consider going other routes. But for most people NACA offers a super deal. I have closed several sales for my clients, and  although they are not the easiest, they are the best. Less than 5% interest rate and no matter what your Fico Score is, even if you do not have any credit (this does no mean a pattern of bad credit) You do have to show your income, bank accounts, how you budget and a myriad other things a regular loan officer will not require from you. NACA is the best kept secret in mortgages because not too many people know about it and even less real estate agents.

[Specialnupe]

Errin1,

Yes, NACA can be a long tedious, stressfull process. Everyone's situation is different. I am single, in an area with cheap home prices, and I have the ability to "wait" for the NACA process to unfold.

I hope you were able to find a home.

[Specialnupe]

ZEP,

I am absolutely hanging in there! I went to the purchase workshop on 5/8/2010 and had the 1:1 intake on 8/3/2010 a followup appointment on 9/10/2010.  Now I should be less than a week from being NACA qualified! so I would say the process hasn't been bad for me as of yet.  Reading all of this thread, and making sure I had all my finances in order... and paperwork ready... helped me be able to get thru relatively quickly

I've already trying to decide between 3 properties. (1) is a huge wharehouse style loft, Intown (2) is a Huge 3,000 sqft 5 bedroom home, (3) is a smaller 1,800 sqft 4 Bedroom home.

Just trying to decide what best suits my needs/wants.

[mystikal1]

Hello everyone. Just wanted to say we closed!!! It was a long process but we did it. Our interest rate is 3.25%. We purchased a Freddie Mac owned home that is brand new never been lived in. It is a lonf process with NACA but hang in there and stay on top of everything and you will be rewarded.

[Specialnupe]

Congrats Mystikal1 !!!!!!!!!!!!!!!!!!!!!!!!!!!!!

[Specialnupe]

Question:

Has anyone put a house under contract before receving the actual NACA qualifcation letter?

My situation:

My file was sent for qualification on 9/15/2010.  Underwrting came back that I needed explanation for variance in rent payments. My counselor told me over the phone that everything else in my file was good to go! I got all the documentation and it was resubmitted today 9/27/2010.

The problem is that I in my house hunting I found the perfect home, that had just had  a drastic price reuction. I don't want to lose it. My real estate agent says that he can write up the contract with a 30 day financing contingency that would PROTECT ME.

Has anyone done this before? I am positive that my qualification is coming soon.

[zep]

Nupe: Do not go out looking for homes as you really do not know how much they will qualify you for. Also the Real Estate Salesperson you use, unless you have your own already, will be one of NACA Prefered Realtors (that only means that they have closed purchases with a NACA mortgage. Keep in mind that they are really picky when it comes to livability, the home has to be ready to be lived in, otherwise is a long and tedious process for repairs. They have their own rules and the rules the realtor has to go by are for your benefit

[missjade]

Nupe,

I actually had a contract way before my qualification.  I had a realtor and was looking for houses before I found out about NACA.  I was actually prequalified by a different bank first.  When I found out about NACA it was a no brainer that it was the absolute best thing and would be the most cost efficient in the long run, so I started the process.  Because NACA was new to Cleveland (I was the 1st one to close here through them), there was a lot of uncertainty and misinformation circulating around.  I went to my workshop on June 9th, 2008.  My intake was the following week.  I was told at that time that everything looked good and it should not take long and that I can go under contract.  I found my house in late June and went under contract in early July.  I took advantage of NACA's great deal to have the seller buy down my rate.  So I offered full listing price in exchange for them paying 6% to buy down my rate (from 5.875 to 4.375%), which made my mortgage payment much lower than had I offered 85% of listing (which I was planning on at 1st) and had to pay the regular rate.  It was a win/win for everyone.  When the sellers started getting impatient, and the closing was nowhere in sight, we asked NACA for a prequalification and to verify that the process was far along to prove to the sellers that I wasn't wasting their time.  NACA then told us that they do not issue prequalifications, but qualifications only.  My counselor got frustrated with NACA and quit (I am not sure if NACA was misinforming her or if she was not understanding the process).  I was given a new counselor and he took care of me the rest of the way.  My realtor talked the sellers into extending the contract using my prequal from the other bank as a backup plan if NACA fell through.  I finally got the OK from NACA in late August, but did not close til October 20th.  It was a long process having to get the inspection company NACA approved, then the title company, etc.  It was very frustrating, especially since I was 1st told I should close by the end of July, had qualification at end of August, and the lease on my apartment expired on August 31st.  My September and October rent payment was higher then my new mortgage payment since I did not sign a new lease.  Thankfully the sellers kept extending, although they made some threats along the way.  In the end it was all worth the wait.

I would definitely suggest going under contract if you feel that it's only a matter of time with NACA.  Your realtor has some great advice and I would suggest letting the sellers know that the company you are using has a long process and may take some time.  That is what we did as well.  They will appreciate you being upfront.  If you can, get preapproved somewhere else and use that as a backup to make the sellers comfortable.  And since your contract will be conditional on financing, you can always renegotiate in case NACA does not approve you for full purchase price.  And make sure you try to get them to buy down your rate.  Today the NACA rate is 3.75% (as of 9/22, not that it will be when you close, but hopefully its doesn't go up by much) and if you ask them for 6%, or even 4% it would lower your rate to between 2.25 and 2.75% (based on today's rate of course).

Best of luck and I am crossing my fingers for you.  Please let us all know what happens in the end.