11-06-2008 07:37 PM - edited 11-07-2008 05:18 AM
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".
11-07-2008 06:11 AM
That $50 a month averages about the same if not less than PMI...which insures the banks!!! At least this $50 per month insures YOU, the consumer! And you can't get rid of PMI until you've reached 20% equity which can take more than 10 years.
11-07-2008 07:24 AM
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.
11-07-2008 07:33 AM
11-07-2008 08:08 AM
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
11-07-2008 08:17 AM
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.
11-07-2008 08:29 AM
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.
11-09-2008 06:39 PM
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.
11-12-2008 03:59 AM
11-12-2008 06:46 AM
I agree with you! This thread should be positive....encouraging, not negative.
I have my first appointment with my counselor today. I'm nervous, but excited.
I'll let everyone know how it went!