Has anyone actually closed one of these things???.....
Sounds like a total scam......anyhow why would anyone sign up for 5 to 10 years of required "service" + $50 PER MONTH for a minimum of 5 years to get this program........
A mortgage doesn't quite sound worth this total hassle.
Maybe everyone is receiving such a run around because your "counselors" are those who got roped into this mess in the first place and are being forced to finish out their "service".
Where on their site does it say you won't have to pay PMI?
Most likely it is the $50 per month for 5 to 10 years + Private Mortgage Insurance....since the loan would be 100%.
Still sounds like a scam to me.
I'm not sure of the forum's policy on posting links so I've listed the "path" below to the portion of the website that indicates there is no PMI.
Naca Website--->Purchase-->Purchase Product
Somewhere on the first couple pages of this thread I think someone posted two links. One is a realtor's website where people who have closed through NACA have posted comments.
I haven't heard anything real negative about this program other than the length of time that it can take to go through it.
Ditto. The majority of the negative comments I've heard are related to how long the process can/may/has taken and follow-up/correspondence time. A potential downside could be the maximum purchase price for your area.
I read a post on another site by someone who stated that they closed on a loan during the summer in Atlanta and obtained $50k in buy-down funds from the builder. I spoke with an employee in a builders office while out looking at communities. She was familiar with NACA and said that they had recently (Oct '08) closed with a NACA member and provided $35k in buy-downs.
Also, what money would I need to get the approval. Do I have to show all of the money required (escrow, earnest money, etc.) or do I only have to have my payment shock in my bank account when I get approved.
Any additional help would be helpful. I'm trying to get myself ready mentally and financially so the process can go a little faster than 3 or 6 months.
These figures are from the worksheet from my intake appointment. This is based on the $170k that I originally wanted to borrow and a $10k buydown of the 6.5% interest rate.
Earnest money: $1000
Home inspection: $250
Prepaid condo fees: $500
Prepaid interest: $336
Prepaid property taxes (3 months): $1050
Reserves (two months PITI): $2598
If you aren't buying a condo, then you need to prepay one year of homeowners insurance. If your payment shock is under $300 a month, you only need one month PITI in reserve.