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The Official NACA mortgage thread

Regular Contributor

Re: The Official NACA mortgage thread

Hello Piffer28,

 

While it is not an absolute requirement that you both attend the workshop, this is going to likely be the biggest and most important purchase of your lives. There really is not a good reason for only one of you to go considering the importance of what you are about to do as a family.

 

The NACA program is designed to help primarily low and moderate income family achieve affordable and resopnsible home owenrship.  As such, there are only two cases in which you may exceed the regional Maximum Acquisition Cost. 1) Your household income is 80% percent or less than the median income for your Metropolitan Statistical Area (MSA) in which you are buying as determined by the Federal Financial Institutions Examination Council (FFIEC), or 2) you buy in a Census Tract in which the median income is 80% or less of that for the MSA.

 

It's not quite as complicated as it sounds, and your NACA counselor will help you determine if you qualify to have the Maximum Acquisition Cost waived during your initial counseling appointment.

 

Tim Trumble

Online Operations, NACA

 

Message 4541 of 4,565
Regular Contributor

Re: The Official NACA mortgage thread

Well it has been 3 days since we closed on our home and I can’t express how grateful my family and I are for NACA.
The community here is very supportive and I can’t thank you all (especially Tim) for all the guidance and encouragement throughout this process. The home buying experience can be stressful no matter what company you go with, but I found our NACA journey to be quite painless and more importantly insightful. I say insightful because it forces you to focus on where you are spending your money and ensures you have the tools to be set-up for the long run.

I’d thought I would give a timeline of our journey and then some tips that might help those going through the process or contemplating it.

 

Timeline
11/5 Attended Workshop
1/23 1st Intake Appointment (We asked for later date to get paperwork ready)
2/22 NACA Qualified
2/24 Attended Purchase Workshop
2/24 – 3/31 Waiting on landlord (Plan was to buy existing house we were renting, landlord was less than responsive)
4/1 Started looking for houses
4/11 Put in Offer (Asked for closing costs to help with buy down…more in tips)
4/12 Offer Accepted
4/12 Credit Access submitted (Lots of back n forth with NACA underwriter…more below in tips)
4/19 Home Inspection / Termite / Radon
4/25 Repair List from HAND / HAND cleared repairs (Just some cosmetic repairs that didn’t require HAND involvement)
4/26 Got seller concession for repair list
4/26 Appraisal requested
4/30 Credit Access Approved
5/1 Bank Application (Lots of back n forth with BOA underwriter…more below in tips)
5/3 Appraisal back higher than purchase
5/4 Home Owners Insurance purchased
5/23 Clear to Close
5/25 Closing Disclosure emailed
5/30 CLOSED!!!!

 

Summary
We wanted to wait a couple months for our 1st intake appointment with the goal of being NACA qualified almost immediately. We took that time to look at our spending habits and start working on a realistic budget…very surprising to see how much waste we had. Once we decided to stop waiting for landlord of current house, the process really flew. I knew what to expect along the way because of the support here and made sure to stay in close contact with my MC. I never let more than 15 mins go by without responding to an email from my MC and always took the approach that if he was working my file at that time, I wanted to keep him working on it. When signing the purchase contract for the house, I felt that 45 days would be sufficient given the other timelines I have viewed here over the past 9 months…we missed that by only 3 days, which I thought was a HUGE win! Most of our wait time was on the part of Bank of America underwriting and conditions they asked for…one in particular that was so odd, that both MC and I couldn’t believe it. Had BOA listened to MC explanation from first response and cleared the condition, we would have closed 2 weeks earlier than my contract date. Overall I am thrilled to have this part done and really appreciate all that NACA has done…people can not believe my interest rate and No PMI, No Down Payment, No Closing Costs!

 

Tips
Go to that 1st Intake with mindset of getting qualified. Upload all your docs into the Web File
Stay on top of your file. I’d hate to see how many times I logged into my Web File for updates
Be prepared – Create a folder and store all documents that are outlined in Handbook. Keep scanned copies online for easy emailing
Use Internet Explorer not Google Chrome for statements. Underwriters require the URL from website and Google Chrome for me wouldn’t save URL no matter how I tried to print….Internet Explorer worked great.
Use a NACA realtor from your office. They have experience and know how to work your file. My realtor thought asking for closing costs in this market was a no/no but I was adamant that I wanted to use funds for buy-down, which he didn’t understand.
Stay patient – You’ll be asked for same things multiple times, this helps your MC get what needs faster.
Relax – Regardless of where you get a mortgage, once you hit the Qualification stage it’s similar to wherever you go. Delays are going to be a part of it and it’s okay to be frustrated…just be the polite pest when needed. ***Taking bagels or donuts to office helps too***
Stop your credit card spending – I was a rewards chaser and would pay with credit card for everything and then “try” to pay off balance in full. Don’t treat credit cards as funds you have….stick to your budget and add no debt.

Last Tip and Biggest for me – After you are qualified, find a home quickly and get under contract. My delay in Credit Access phase was partially because I waited almost 2 months after being qualified to signing a contract…essentially I had to be “Qualified” again. If you sign a contract just after being qualified, you can imagine how much smoother the process is. I have no doubt that I would have closed within 28 day goal if I had done that. Also, if you are looking at houses needing repairs its best to request a longer closing deadline…your adding more to the process with HAND and contractors/bids/reinspection…so keep that in mind.

 

That’s quite the ramble, but I loved reading success stories and it is great to have my own.

Good Luck and stay with it!

Message 4542 of 4,565
Regular Contributor

Re: The Official NACA mortgage thread

Hello cmony787,

 

First, CONGRATULATIONS!!!!!

 

Thank you for the very kind words about my being here to help.

 

You provide so much great advice in your post that I won't go into detail, but I particularly like that you promoted the "polite pest" aproach.  It really does work!

 

Enjoy your home!

 

Tim Trumble

Online Operations, NACA

Message 4543 of 4,565
New Visitor

Re: The Official NACA mortgage thread

hello can you please tell me your experience with them. i attend workshop tomorrow. i will just like to know what all to expect. i want  a home asap

Message 4544 of 4,565
New Visitor

Re: The Official NACA mortgage thread

Did you have to pay any money during any of the process
Message 4545 of 4,565
Regular Contributor

Re: The Official NACA mortgage thread

Hello Fowens618,

 

The only money you will pay to NACA is a $25 per calendar year membership fee (which ends after you close on your home) and reimbursement for our cost of pulling your credit report, which is less than $14.00.  Be aware though that yoru credit file will have to be re-pulled every 90 days (requiring a new payment) until you close on your home as the report is considered outdated after 90 days and must be kept current.

 

Tim Trumble

Online Operations, NACA

Message 4546 of 4,565
Regular Contributor

Re: The Official NACA mortgage thread

No workshops near me Smiley Sad
Message 4547 of 4,565
Regular Contributor

Re: The Official NACA mortgage thread

Hello david244us,

 

Where are you located?

 

Tim Trumble

Online Operatrions, NACA

Message 4548 of 4,565
New Visitor

Re: The Official NACA mortgage thread

I am one of the members of this thread when it was just 10 pages long and we required people to read the entire thread before asking questions. It has come a long way since then. I had to create a new account but I was successful1 back then.

 

Anyhow I'm back to share my experience regarding MAP and the NSF. Hopefully it will help somebody as I'm sure my previously shared experience has helped in the past.

 

The NSF when I started NACA was only 5 years. They told us and put it in writing that we'd have to pay $50 for the first 5 years of the mortgage for NSF. Well after 4 years and 11 months I called up to see what needed to be done to make sure we're in the clear. I was politely told that I must have misunderstood because NSF is 7.5 years and always has been. Now I know I'm no dummy and I paid very close attention to every detail of the NACA process. They told me and many others it was 5 years but according to them I was making it up. OK fine!

 

After 7 years and 5 months I called again. Only to be told I have 5 more months to pay. Apparently BOA failed to make the NSF payments for 4 months in 2015 so I was still on the hook for that $200 plus $50 for the remaining month. I have been fighting this since March!

 

What happened is that I got divorced in 2014 and needed to get my ex wife's name off the mortgage. It was a peaceful split with no court orders or division of assets. Just sign here and go. A NACA MAP representative assigned to me, advised me to apply for a loan modification in order to get her name off. This way I could keep my interest rate. That was denied, they told me I had to refinance. That would turn my 2.6 into a 6.2, no thanks!

 

Next the MAP rep told me to file it again on the grounds of economic hardship since I went from 2 incomes to 1. That too was denied because they determined I could afford the mortgage just fine with my income alone. The next move was to try a loan assumption. That was denied because there was no criteria I fit to qualify. The MAP guy told me that I'd qualify if the mortgage was behind in payments by at least 30 days. So I didn't pay one month, waited 30 days, and applied for assumption again. The process took 3 months and they were about to deny me again. I made the case that loan modification already determined I can afford it on my own so they have no grounds for denial now. That worked and they allowed me to assume the entire mortgage. One side effect of that is I was no longer enrolled in online access to my mortgage. I was locked out of my account, all transactions now have to be done on the phone or at a branch. Annoying!


Anyhow my newly assumed mortgage was now 4 months behind and I spent the money. Dumb move right? Not so fast. The BOA rep who handled my assumption told me they'd offer me a modification package that only required me to pay a few partial payments over the course of 3 months that would mark me current and on the 4th month I resume normal payments. That never happened so I was just plain late. I caught the payments up by just sending in random amounts of money. $600 here, $200 there, another $800, then $1000, and so on until I was all caught up. In December of 2015 I had all my late fees waived.

 

Fast forward back to 2017. I call BOA to see why they never sent those 4 payments. Well whenever a person is late or makes partial payment, the system doesn't sent the $50 to NACA. OK easy enough, go ahead and send it then. They said it would take 30 days. April comes and NACA hasn't received anything. I call BOA back and they act like they know nothing of what I'm talking about. So I spend 6 hours on the phone talking to 8 different people until somebody with some sense can clearly see the problem. He tells me he will get the check cut to please allow a few days for it to process. I gave it a week. Called back, same deal. Nobody knows nothing. They tried to take $200 out of my account to pay it. The problem is, I brought my mortgage current, INCLUDING NACA fees and my late charges were waived. Where did my $50 a month go for those 4 months? Then June 2017 comes and I've had to make the extra 4 payments. They now owe me instead of NACA.

 

I have figured a way of explaining my issue that they can look in the system and see clearly what's happened but nobody in any department can get me my money. It's September and I'm still trying to get them to cut my check for $200 or just apply it to my mortgage. They admit I'm owed the money but have no clue where to pull the $200 to give me so they just don't. All they tell me is "we'll cut the check, give us 30 days". Then when I call back they say it was denied. MAP records and BOA records show the payments were missed in 2015 and I was forced to make them up in 2017. I did my part, BOA didnt! In understand the system isn't built to handle partial payments but they still did something with my $50 for those months and I need it back.

 

If you are late or need to make partial payments, make sure NACA gets their $50 for NSF! Call MAP and check the status of your NSF regularly!

 

In totality I ended up paying for 8 years of NSF. It takes NACA 30 days to notify BOA that your NSF is paid in full. If another mortgage payment is due before MAP contacts BOA, you have to pay an extra month of NSF. Took NACA another 2.5 months to pay me back the extra $50.

Just like with purchase, you have to be on top of things all the way through!

 

Best wishes!

 

Oh and I'm remarried to the woman of my dreams with a baby girl on the way! Still enjoying my 2.6% interest rate!

Message 4549 of 4,565
Frequent Contributor

Re: The Official NACA mortgage thread

A question for those that have went thru the NACA program, would you suggest uploading your documents for the initial appointment or to just bring them in to the initial appointment? I just want to make this as smooth a process as possible.
Thanks
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Message 4550 of 4,565