ratified contract on new construction home

[MsTucker09]

Hello everyone I first wanted to ask what a ratified contract is.  the reason is because I think I signed it when I received the GFE and other documents.  I originally wanted to use the builders mortgage company but I don't think they will approve my husband b/c of his low mid score (560) and I originally wanted to do FHA but i dont think we will get approved.  Someone suggested NACA and my husband spoke to an agent and he said that if we had a ratified contract we would not be able to use NACA we would have to use FHA and I wanted to know how true this is.  If anyone can give me some input I would appreciate it. thanks.

[ShanetheMortgageMan]

Ratified contract is when both you and the seller have signed the purchase contract, it has nothing to do with the mortgage.  I'm not sure of NACA's requirements but there is a 6+ page thread about people's NACA experiences... from what I've been reading in it if you have 4-6 months to spare then it sounds like a good option, the people there try very hard to be helpful and have all of the best intentions, but the system is very disorganized.  FHA lenders are typically wanting 620 scores now, so it might be tough to find a lender for you now.  When is the new construction home going to be complete?  Do they require you put an upfront deposit on it?  Is it refundable if you are unable to qualify for financing by the time you need to?

[MsTucker09]

thanks so much shane the home should be completed in jul or Aug we put $1000 deposit upfront and it would be refunded to us if we are not able to be financed but we are diligently working to have baddies removed and husbands score has gone up 100pts in 4 mos and mine up 60pts so hopefully it wil keep increasing.

[ShanetheMortgageMan]

Welcome.  Yeah I thought I read something that when you go to NACA you can't be under contract but I'm not sure if that was the case exactly.  Your local NACA office could tell you for sure though.  Sounds like you'll have enough time to do some score improvement, ad perhaps even wait for NACA's process as well.  If NACA requires you not be under contract, I'm sure there is some way you could just re-sign the contract at a later date and still be able to use them as an option.

[Anonymous]

Your right Shane, you cannot have a contract when you start with NACA. If you have at least 3-6 months and patience of steel NACA is a way to go.  It gives hope for those out there who are  credit worthy who don't fit a certain standard.  NACA fills the bill.

Message Edited by gigi5 on 03-31-2009 08:32 AM

[Anonymous]

We are now starting this process, We have taking time to clear up some items on our credt, my credit had the least but an bk 13 dismissed in 03, which my car loan keeps changing collection agency.  My current scores are( trans 587, exp 602 exqu 588) my husbands is (trans 520 exper 525 equ 527) Our income is about  $7840 to 9520.00.  Would we be able to get a loan through NACA

[Anonymous]

battle 1,

NACA is not score driven,  it depends on what you have on your credit report.  Are ther any 30 day lates?  Have you bounced checks? Are your collections over 2 years old? What is you debt to income ratio?  Give us more specfics and we will jump right in a nd help you line by line. 

If you haven't done so already go to a workshop.  go on naca.com and put in your zip code and sign up for the earliest workshop.  If its filled still go just get there at least 1/2 early and sign the sheet get a workbook and soak everything up like a sponge.

Just chime in with your questions we are here to help.

Make sure you check out the NACA thread too!

Message Edited by gigi5 on 04-28-2009 08:27 AM