The Official NACA mortgage thread

[SingleWithThree]

Wow, my first appointment was longer than 2 hours.  I wasn't expecting that.

I was told to pay off two collections totally $260...I didn't have to worry about anything else because it was all old.  He did say though that they like you to have at least 3 tradelines with a positive 12 month history which I don't have because I didn't want any credit for an entire year.  My new accounts have only existed for 4 months or less.

My total required funds are as follows:

$500 earnest money

$300 home inspection fee

$50 Re-inspection fee

$600 Re-hab specialist fee (not required in my case)

$660 prepaid homeowner's insurnace

$110 escrowed homeowner's insurance

$300 escrowed taxes

$236 prepaid mortgage interest

$788 one mortgage payment reserves (shock is less than $300 per month)

So my total is $2394

Now this is the part that made my head spin!  I asked about the time frame, which I figured I was pretty close to being good to go.  Well, because he added the cost of my student loan payments which I'm not paying on yet I ended up over my budget.

This is the part that I was struggling with...my car will be paid off in 11 months....I won't need to start paying on my student loans for another 18 months....so why don't these debts just cancel each other out?  Why not budget me for ONE payment instead of both when I will NEVER pay both at the same time?

So because of that, he gave me a time frame of 10 months because he wants me to pay off my car first!

Very frustrating! 

Other than that, I was happy with the results.

Message Edited by SingleWithThree on 11-13-2008 08:44 AM

[Anonymous]

You are wasting your time with NACA.  Go to a real company.  Student loans deffered for more than one year don't count against your DTI.

With a real lender these 2 things would cancel each other out and they would only count your auto loan at this time against your DTI.

[Anonymous]

    I started this thread to help people interested in this program share their experiences to help others. It's been a wealth of information to me and I'm sure other readers of this post. It would be nice if others stop trying to discourage those of us trying to get information on a program that will save us thousands or even hundreds of thousands of dollars in interest and other fees and help those people that may have never dreamed of home ownership.

   1111mel it would be a tremendous help if you would stop posting your negative comments here and keep the air free of your foul smelling comments. It seems that you're bitter because maybe you over paid for your home during the housing boom and maybe you're a little upside down now? Don't be bitter 1111mel in about 10-15 years after you've paid 5 times what your home is worth or possibly face foreclosure you'll finally admit this is a good program. I'm sure other's would echo my sentiment when I ask that you reserve you're future posts for another forum...You're comments aren't wanted here.

[Anonymous]

Hi SingleWithThree,

I'm going through NACA and I close at the end of the month. If I were you I would request a document from your student loan lender asking them to state that "you are not to begin paying until 18-months" in writing. Once you get that documentation and pay off your collections ask the counselor to send your file to the underwriter. Most likely it will be sufficient. I only had a couple of tradelines on my credit report, so the underwriter requested that I submit copies of my 12-month payment history for 2 bills. I used my cell phone and insurance and it was enough...I recommend that you give this to your counselor before he submits your file to the underwriter as well. Trust me pulling these things together before you are asked will save you weeks if not months!

I must admit that I was VERY frustrated with NACA (my story is in this thread somewhere), but now that I'm about to close with almost a 0% interest rate I can say that it is definitely worth the wait. The key is to be patient. I was approved for an FHA loan almost $100,000 LESS than what I purchased my home for. My location, home, schools, and neighborhood are soooo much better than what I could afford at a 6% interest rate!

Message Edited by SecondChance23 on 11-13-2008 09:29 AM

[SingleWithThree]

SecondChance23-

Thank you for your words of encouragement.  I do appreciate them.  I was thinking of doing something similar.  Another obstacle is he wants me to consolidate my student loans and I discovered today that NO ONE is offering consolidation because of the current crisis.  Not even the big banks.  So that might be an issue.  I will do what you suggested.

I have the house in mind that I want.  This is the home that I put an offer on over the summer when I was preapproved through FHA.  The realtor is trying to get the sellers to allow me to move in and rent from them until I get the loan approval.  If that happens, then I won't be so irritated about the wait. 

I want this home more than anything!  I really truly do!!!

[brighterday]

Singlewiththree, I can relate to your frustration but I think SecondChance has given you an excellent suggestion.  In addition to the documentation from your student loan lender, I'd suggest adding a letter to NACA/the underwriter explaining why you feel the debts should cancel each other out.  It might not help, but it definitely can't hurt.  We typically advocate for ourselves better than anyone else. 

Another thought: I was told by a NACA counselor that debts that will be paid off in 10 months or less do not count against you when determining affordability.  You may want to ask your counselor if that is indeed the case.  If so, as long as the monthly payment and balance on your credit file show that the account will be paid in full in ten months it may not be an issue by the time you go in for your next appointment.

[SingleWithThree]

Thank you Brighterday!

[brighterday]

As I mentioned in an earlier post, my counselor sent my file to the UW for review. It may be worth it to note that the purpose was not for approval (although that would have been great), but to receive feedback from the UW and be certain of the items that needed to be worked on.

The primary feedback is that I need to pay off 2 collection accounts, reduce my credit card debt, and show 6 months of on time payments on all credit accounts (had a late payment in august which were essentially caused by an influx of medical bills).  So if I pay off the ~$200 in collection accounts and about ~$1800 credit card debt I should have an approval in February or March.  My counselor stated that he would advocate for me on some of the items the UW listed but I declined b/c I'd like to take the additional time to pay off the debt and save more money.

Minimum Required Funds ($240k desired home price)

Earnest Money: $500

Home Inspection: $250

HO Insurance: $480

Escrowed HO Insurance: $80

Escrowed RE Taxes: $720

Pre-paid Mortgage Interest: $413

Reserves: $1501

Total MRF = $3444 (excludes $500 earnest money since it can be used for the prepaids)

The numbers were calculated when the rate was 6.375% and assumes $21.5k in buydowns which is reasonable based on feedback from my counselor and a few RE professionals. 

[Anonymous]

1111mel it would be a tremendous help if you would stop posting your negative comments here and keep the air free of your foul smelling comments. It seems that you're bitter because maybe you over paid for your home during the housing boom and maybe you're a little upside down now? Don't be bitter 1111mel in about 10-15 years after you've paid 5 times what your home is worth or possibly face foreclosure you'll finally admit this is a good program. I'm sure other's would echo my sentiment when I ask that you reserve you're future posts for another forum...You're comments aren't wanted here.

-----------------------------------------------------------------------------------

Richhaven,

My comment was a fact.  I apologize if my fact is against the NACA program.  I am not bitter.  I haven't bought a house yet, but will next spring when I have 5% down and 6 months in reserve.

Thank you for wishing me bad financial luck and reveling in your idea that I screwed myself up with my mortgage.

Now tell me which one is a foul comment.

I only suggest that everyone interested in this program talk to a Mortgage Broker too because telling something their deffered student loans count against DTI and telling them to pay off collections etc. is not what a regular mortgage broker would say.

Good Luck!  I hope we all get our dream house soon!

Message Edited by 1111mel on 11-13-2008 01:41 PM

[Coreyswife4ever]

Thank you all so much for posting.  We go to our first counseling session on Dec. 9.  I can't believe it took over 2 hours.  We have a 5pm appointment and my husband is usually in the bed by 8:30 because he has to be at work at 4am.  I hope it doesn't go over 2 hours.  I've been looking at my credit report and trying to see what they might ask me to pay off.  I have a couple of questions and if you can answer them please do so.

I have some items in collection that's been there since 2003 and 2004.  When I look on my credit report it said date reported and it had the 2003 date but it also had recent activity and it states this year.  I haven't made any payments on it since 2003 (some of these debts are so old I forgot I had them).  Will they look at the date reported or the last activity?

I only have one open account and it's my car payment.  I got behind this year because I was in the middle of paying for a wedding and trying to catch up on other things. 

What other documents do you think I can show as proof?  Also, when you say you got a copy of your insurance payment history are you talking car insurance?

Any other advice is greatly needed.

Thank you all so much and please keep posting.  I'm getting really excited about going through the program.