The Official NACA mortgage thread

[Anonymous]

Hello sparkle1908,

If you can show that you have been saving at least the desired Payment Shock amount for three or more months, the counselor will be able to re-submit the file to underwriting with a request for a higher qualified payment amount and theus, a higher purchase amount.

Another way of increasing your maximum purchase amount is to take advantacge of the interest rate buy-down function, which can raise your maximum purchase amount without raising your payment.  Many down payment assistance programs exist around the country which provide funds that can be used toward interest rate buy down.  You counselor should be able to give you details on local programs.

Tim Trumble

Online Operations, NACA

ttrumble@naca.com

[Anonymous]

Hi everyone,

I am very interested in the NACA program, however, I am unsure if it would work with our competitive market here in Colorado.

Homes are often under contract in the first week of listing.   If I find a house I want, I will need to act quickly.

I would love to hear comments as to if this could possibly work, in such a competitive environment.  I am assuming that it would not be appropriate.

[Anonymous]

Hello LolaCat,

In the NACA Program, you are not allowed to go house hunting until after you have been qualified and received your qualification letter.  In our view, shopping before qualification is not only putting the cart before the horse, but most likely setting yoruself up for a huge disappointment.

The NACA program is not desighned to be fast and easy.  The qualification process is detailed and does not have a specific time frame as the NACA program is a character based lending program that does not use your credit score.  Instead, we review your past two years of financial history, work with you if there is anything that needs to be resolved, and require you to show personal financial responsibility through a designated savings pattern as well.

If you are in a big hurry, the NACA program may not be for you.  However, if you are willing to follow along with the program, do what is required and hold off until after qualification to go house hunting, it will be well worth it as you will save thousands of dollars over any other mortgage program in existence.

Tim Trumble

Online Operations, NACA

ttrumble@naca.com

[Anonymous]

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@Anonymous wrote:

Hello LolaCat,

In the NACA Program, you are not allowed to go house hunting until after you have been qualified and received your qualification letter.  In our view, shopping before qualification is not only putting the cart before the horse, but most likely setting yoruself up for a huge disappointment.

The NACA program is not desighned to be fast and easy.  The qualification process is detailed and does not have a specific time frame as the NACA program is a character based lending program that does not use your credit score.  Instead, we review your past two years of financial history, work with you if there is anything that needs to be resolved, and require you to show personal financial responsibility through a designated savings pattern as well.

If you are in a big hurry, the NACA program may not be for you.  However, if you are willing to follow along with the program, do what is required and hold off until after qualification to go house hunting, it will be well worth it as you will save thousands of dollars over any other mortgage program in existence.

Tim Trumble

Online Operations, NACA

ttrumble@naca.com

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Hi Tim,

Sorry I should have clarified my question.    Once qualified with NACA, how quickly can a person act on a home purchase?    Typically desireable homes here are only on the market for 1 - 10 days.   Once an offer is accepted, there is a time limit for closing proceedings on the sellers end, correct?    I am concerned after reading NACA reviews about people losing homes because of a slow closing process. 

Another issue here is that bidding wars are common, so I'm not sure how that would mesh with NACA procedures.    I would like to invest the time to apply with NACA, and my timeline is 12 - 18 months from now, but I'm not sure if NACA is appropriate for this market (Denver).

Thanks in advance for your thoughts.

[Anonymous]

Hello LolaCat,

After being NACA Qualified, you are required to attend a Home buyer's Workshop the following Thrusday evening at the local NACA office. At the workshop you will receive your qualification letter, and that that point you may start shopping for a home.

When you make an offer that is accepted, make sure to state in teh Purchase asn Sale Agreement a nimimum 45 day closing window (preferably 60 days).  While our objective of 28 days from contract to closing is being met in the vast majority of cases, we always want to allow extra time for unforeseen circumstances, such as repair issues, apprisal disputes, etc.  The stories you see of delayed closings are a tiny minority of NACA home buyers.

Rising prices and even price gouging is a nationwide phenomenon right now, but the signs are that this is leveling off.  Denver is by no means seeing the huge price incresaes that areas such as the San Francisco area has seen.  If NACA wasn't "appropriate for this market", we wouldn't be there.

Tim Trumble

Online Operations, NACA

ttrumble@naca.com

[Anonymous]

I am very interested in the NACA process.  I am about 215 pages through this thread right now and about halfway through the workbook I downloaded online.  I was jsut wondering if anyone can shed some insight to me.  I will be working with the Oakland CA office and am attending my workshop in one week.  

Here is a little about me.  My credit score is about 790.  I make $40,400 per year ($3300 gross per month).  I also recieve $75 in documented child support each month (child support order).  My child's father also transfers $200 to me per month (which will be shown as proof on bank statements) but I am not sure if NACA can use that $200 since it is not officially through the court system.  I have no debt - no car payment, no loans and I pay off my credit cards in full each month.  I have about $20k total between my savings and checking accounts, which I will use some for buydown/down payment, and that will continue to grow by about $900 each month as I am saving towards this house purchase.  I live with my parents and transfer $350 to their bank account each month, also shown on my bank statements.  

I found a great community and I would like to purchase a condo there if possible.  These units are brand new and after reading about HAND, it has been stated new is easier to go with.  This next phase of units will not be ready to move into until December and the purchase price is $225k.  I am in contact with USDA Direct and I am pretty much qualified through them but they may be out of funds when the units are ready in December (or if my income increases any more than it is right now, I will be removed from the program I gathered from USDA).  I figured I should have another plan and I am really interested in the NACA program the more I read about it.  

Any insight into my situation or if I will be qualified for a mortgage around $1300 would be greatly appreciated.  FHA is too high of payments for me with MIP/PMI and I don't have 20% to put down for conventional.

[Anonymous]

Hello Giggles615,

You really didn't provide enough information to definitively answer most of your questions, and the calculations invovled are part of your counselor's responsibility.

What I can tell you is that the extra $200 per month cannot be used in the income calculations as you suspected.  There must be substantiating documents for any steady source of income, and the $200 falls into the category of a gift instead.

Your income as stated would not get you a $1300 payment as that is well beyond the debt-to-income ratio allowed. You will most likely top out at around a $1045 payment. However, by using the interest rate buy down program, you should be able to buy down the rate enough to increase your maximum acquisition amount to get the $225K  for the home you want.

Please continue your savings pattern as this will go a long way to getting you qualified quickly.  Please keep us updated on your progress.

Tim Trumble

Online Operations, NACA

ttrumble@naca.com

[Anonymous]

Due to a commend someone made on a forum I signed up for a workshop.

I only make 47.5k but am acting responsibly but have about 2k so far for $

I have signed up for a workshow in a few weeks.

I worked tirelessly to clear all derogs from my credit and have worked
for the same company for 12 years.

I think I have the tenacity to go through this programm and would MORE than wiling
at some point to show others how to also. I just hope my current landlord
is willing to wait. He wants me to do some sort of shannigans where I pay more for the house
to get a bigger loan and then pay him back the closing costs that he loaned me upfront
or something. I dont like the sounds of it.

The house needs all new windows and there seems to be alot of chipped/cracked paint
and the basement floods something aweful when it rains alot. I wonder if this houyse would even
Pass inspection.

Here's to the future!

BTW I live in Dutchess county NY but the closest workshop was in Waterbury CT about  1.5 hours away.

Is that ok that it's in a different state?

Location:	St Margarets Church
Date:	06/25/2016
Time:	10:00 AM - 2:00 PM
Address:	289 Willow Street Waterbury

[Anonymous]

Hello Smarzig,

Attending the workshop in CT is fine. The workshop is identical in all states. Likewise, it will be okay to work with our Hartford office if that is the closest one to you, as the office is licensed for the state of New York also.

Based on what you have stated and provided there are no unforeseen issues that pop up to delay the process, you may be able to get through the process fairly quickly. The fact that you have been saving money will be of great help. I hope that the savings pattern also shows consistent savings each month.

There are no closing costs on a NACA mortgage, so whatever your landlord is planning, he’s probably going to be disappointed.

The NACA mortgage also has the option of building repair/rehab funds into the loan, up to a total mortgage amount equal to 110% of the post-renovation value of the home.

For now, make sure all your bills sure being paid on time, keep saving and pay close attention at the workshop. (It’s a LOT of information!) You may want to join us on our own NACA Forum at http://forums.naca.com. Keep us updated on your progress.

Tim Trumble

Online Operations, NACA

ttrumble@naca.com

[Anonymous]

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@Anonymous wrote:

Hello Smarzig,

Attending the workshop in CT is fine. The workshop is identical in all states. Likewise, it will be okay to work with our Hartford office if that is the closest one to you, as the office is licensed for the state of New York also.

Based on what you have stated and provided there are no unforeseen issues that pop up to delay the process, you may be able to get through the process fairly quickly. The fact that you have been saving money will be of great help. I hope that the savings pattern also shows consistent savings each month.

There are no closing costs on a NACA mortgage, so whatever your landlord is planning, he’s probably going to be disappointed.

The NACA mortgage also has the option of building repair/rehab funds into the loan, up to a total mortgage amount equal to 110% of the post-renovation value of the home.

For now, make sure all your bills sure being paid on time, keep saving and pay close attention at the workshop. (It’s a LOT of information!) You may want to join us on our own NACA Forum at http://forums.naca.com. Keep us updated on your progress.

Tim Trumble

Online Operations, NACA

ttrumble@naca.com

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For my rent, I have two other roommates who pay me via check or something else and I send the whole thing to my landlord via Paypal.

Lately i have been sending the rent in (1,350) even before my roommates pay /give it to me (usually late.. sometimes by several weeks).

Should I continue to pay him the 1,350 or seperate my rent (450) from theirs.

TY TIM!!!