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The Official NACA mortgage thread

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Anonymous
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Re: The Official NACA mortgage thread

Yes, that would work.

Message 4361 of 4,793
Anonymous
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Re: The Official NACA mortgage thread

Hi Tim,

 

I am interested in purchasing a home through NACA and have my intake appointment scheduled in late August. I have worked tirelessly since attending the entry workshop in February to increase my overall savings, save for payment shock, pay rent by check, pay off my credit card debt, adjust my spending habits, and not incur any new debt. I thought I was on track to home ownership but was involved in a car accident on May 31st (I was not at fault) and my car was totalled. I have to buy a new car, which unfortunately means taking out a car loan. I plan to purchase responsibly, only taking out a small loan. Will this count against me and delay my dreams of home ownership or perhaps just increase my DTI? It is a forced purchase after all. I am aware that buying a car is one of the last things you should do before buying a home. My goal was to be NACA qualified in November. Thanks

Message 4362 of 4,793
Anonymous
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Re: The Official NACA mortgage thread

Hello LunaDC,

 

As long as you purchase the auto before your intake appointment, you will be okay.  In fact, the sooner the better, as it may take up to 60 days for the auto loan to show up on your credit report.

 

The new debt may affect your affordability as the NACA program has limits on your total DTI ratio to qualify.  Obviously, an additional obligation each month may reduce how much you can legitimately afford for a home.

 

Just in case your new auto loan has not shown up on your credit report yet, make sure to take all the relevant documents for the loan so your counselor can include it into your budget review.

 

After that initial counseling appointment, do not open any new accounts or use any existing lines of credit util after you have closed on your new home.

 

Tim Trumble

Online Operations, NACA

ttrumble@naca.com

Message 4363 of 4,793
Anonymous
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Re: The Official NACA mortgage thread

Tim the 15year freedom mortgage looks incredible.

As it is, my landlord wants to sell me the house I'm renting for 150k exactly as in your example

PPL are saying to take a 30Y and get the tax breaks and pay it off earlier.

 

IDK sounds fishy

 NACA 30V15 year loan

Message 4364 of 4,793
Anonymous
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Re: The Official NACA mortgage thread

Hello smarzig,

 

I think we all know that when we follow the advice of "people" (aka the uninformed), we usually make the wrong decision.  As your figures showed, using the 15-year Freedom Loan will save you tens of thousands of dollars over the life of the loan, WAY more than any tax breaks you would get with a 30-year loan.  In fact, that's exactly why we created the 15-year loan in the first place. Saving you a huge amount of money and building equity very quickly. 

 

With the 15 year you ARE "paying it off early" and have a lower interest rate to start with!

 

Use the Freedom Loan.

 

Tim Trumble

Online Operations, NACA

ttrumble@naca.com

 

 

Message 4365 of 4,793
Anonymous
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Re: The Official NACA mortgage thread

I read a bit already but, what are some of the road blocks buying an older house.

One Im qualified, I want to buy the house I"m in but where do ppl trip
up in areas where the house is not up to snuff?

Message 4366 of 4,793
Anonymous
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Re: The Official NACA mortgage thread

Hello smarzig,

 

That's actually a tough question.  A lot depends on not just how old the house is, but how well it was maintained by the previous owners.  Not just wear and tear like the condition of the roof, wiring, HVAC and so on, but energy efficiency and other issues can all come into play.

 

This is actually why we have a thorough inspection conducted on the home before you buy it, and why we make rehab/renovation funds available as part of the loan.

 

Tim Trumble

Online Operations, NACA

ttrumble@naca.com

Message 4367 of 4,793
Anonymous
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Re: The Official NACA mortgage thread


@Anonymous wrote:

Hello smarzig,

 

That's actually a tough question.  A lot depends on not just how old the house is, but how well it was maintained by the previous owners.  Not just wear and tear like the condition of the roof, wiring, HVAC and so on, but energy efficiency and other issues can all come into play.

 

This is actually why we have a thorough inspection conducted on the home before you buy it, and why we make rehab/renovation funds available as part of the loan.

 

Tim Trumble

Online Operations, NACA

ttrumble@naca.com


 

 

The house needs new windows , new garage door and the driveway looks like it was carpet bombed.

 

Things that were recently done

  • New water heater, furnace
  • New sewer pipes
  • New Side stairs into kitchen
  • New Garage Roof

Items of concern

  • Side porch appears to be sagging/sinking/screens broken
  • Basement takes on some water in a bad storm (
    • thereis a sump pump on 1 side of the basement but I think hes going to put in another)
  • Anytime a power tool gets used the lights dim
  • Anytime the washing machine gets used the lights dim in a pattern
  • On the way down to the basement, I see the side foundation of the house bowing out some.
  • There is a ton of cracking/chipping paint

See pics

http://imgur.com/a/JfdFx

Message 4368 of 4,793
Anonymous
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Re: The Official NACA mortgage thread

Hi Tim, when you wrote back to LunaDC in an above message to "not use any existing lines of credit until you close", how does that affect you if you do.  Right now, I am only using my credit card for car insurance, daycare, my sons karate lessons, son medical insurance (4 items that are on autopay and total $400 per month).  I then pay off that bill in full when it is due every month.  Gas and groceries are coming out of checking account instant by using my debit card.  

 

Will it hurt me in the long run if I use my credit card for items that are already set up to charge to the card every month?

Message 4369 of 4,793
Anonymous
Not applicable

Re: The Official NACA mortgage thread

Hello Giggles615,

 

With the particular way you are using that card, you will be okay.  The car insurance, daycare, son's karate lessons and medical insurance are regular monthly expenses that you would have already accounted for in your monthly budget.  Therefore, the ongoing effect of using the card is nullified since the balance does not increase from one month to the next.

 

What MUST be avoided is the balnance on the account increasing from one month to the next.  This in turn would result in a higher minimum payment, which then decreases your affordability.  The way you are using the card is more of a cash flow management tool instead of a line of credit since you are using it for regular monthly expenses then paying in full when you have the money later in the month.

 

In short, the way you are using the card should not have any effect on you since you do not carry over a balance month to month.

 

Tim Trumble

Online Operations, NACA

ttrumble@naca.com

Message 4370 of 4,793
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