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Naca and student loans

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jzsnow
Frequent Contributor

Naca and student loans

You guys are such a wealth of info!! I've been reading these boards about an naca mortgage and I've found some conflicting advice. 

 

we have student loans currently on an income based repayment schedule. Because of our family size of 7, we don't pay anything on the loans. We send in new tax info every year to snow how much we will have to pay. Next year our payment will go up to $45 based on a raise.

 

My question: will they allow my low payments to be entered for my DTI? I've read they will if that number amount is on the cr,but have also read they will only use a standard repayment plan...which is so high we would never be Abe to qualify for a home!

 

any idea? I can't get to a meeting for a few months and trying my hardest to get ready for it!

 

 

Message 1 of 7
6 REPLIES 6
JM-AM
Valued Contributor

Re: Naca and student loans

Naca process is totally different for many situations. Typically they consult you of what you need and how much you would qualify for if you follow the steps.

The biggest issue with Naca is that many do not follow procedure. Everyone purchasing through Naca will eventually be qualified. The time it takes to be qualified varies.

My advice is to sit and discuss with them your situation and ask any questions you have. Once you finish your 1st consultation make sure you write down exactly what you are told to do. Everything they tell you will need to be updated as they request it for example the will need updated bank statements sometimes every month.

But remember if you can adhere to the process and dont expect a call every few days as they are busy. Then understand the process is not a you will buy a home next month because their process takes a little longer since you have to show you can afford the mortgage.
Good Luck
May all your dreams and wishes become a reality!
Message 2 of 7
jzsnow
Frequent Contributor

Re: Naca and student loans

Thanks. Tim answered my question on the naca forums and let me know they do not use your income based repayment schedule for loans, only your standard repayment amount. For me that makes my payment jump from $40 a month to $1500 for both Dh and I combined. It seems so very unfair that we can't use the income based repayment plan that we are on to figure our loan. We make 58k a year! No way could we pay $1500 a month for our student loans and still get qualified for a mortgage! We have a family size of 7, so our ibr payment is so low.

 

Looks like FHA or conventional are my only options since they go based on your repayment plan for loans. Seems ridiculous that naca does loans based on what might happen 10 years down the road. If they are basing loans on what might happen, then they should adjust income on what might increase, too. 

 

Im really bummed that buying a home is longer in our near future.

Message 3 of 7
JM-AM
Valued Contributor

Re: Naca and student loans

Why cant you try FHA or USDA and look for additional assistance from your states housing.

If your scores have issues work in rebuilding board and bring them up.

One day at a time and you can succeed and do this. Many have.
Good Luck
May all your dreams and wishes become a reality!
Message 4 of 7
jzsnow
Frequent Contributor

Re: Naca and student loans

I can do an FHA or conventional, btheir order to get the payments where I need them, I have to put 20% down. If I could go naca, I don't have to save as long for the 20%, which I'm estimating will take me until summer 2015, so I can buy my rate down to 0 and home in a home sooner! 

Message 5 of 7
JM-AM
Valued Contributor

Re: Naca and student loans

Ah now I see where your coming from. If you look into the housing programs of your state they may be able to assist you with downpayments.

I understand you have a large household and it gets expensive but maybe you need to possibly look into a cheaper price range. I know you may end up sacrificing some space you probably need, but if things are that tight you may be setting yourself up for failure.

Wish you the best, I know you can get there you just need some time.
Good Luck
May all your dreams and wishes become a reality!
Message 6 of 7
jzsnow
Frequent Contributor

Re: Naca and student loans

Thanks. We are looking at 175k. We can easily afford the mortgage. Our taxes are only $800 a year for that particular home. Our only debt is student loans at 0 right now, but going to $40 a month in the fall. We live in a paid for mobile home right now. To keep our kids in all their activities, we only want to pay $900 a month for pita. That is doable, but only if we put down the full 20% or go naca. Because we have a paid for home, we aren't willing to buy anything smaller than what we need. Wouldn't make sense to go from 0 mortgage to $800 for no more added space, ya know.

 

I've looked into assistance for a dp, but we have too much money saved for them to help us. We can afford a mortgage. With naca buy down, we would bring 24k to the table for buy down, but our pita and $50 fee would only be $700, and we could buy as soon as naca approved us! Credit isn't our main problem like most people. 

 

Is it possible to do a permanent buy down on interest with other loans? 175k, 0 down, and 24k to a buy down is cheaper than 175k, 20% down, and no buy down.

Message 7 of 7
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