Should I use NACA?

[Anonymous]

I have a question about NACA...I really want to purchase a home this year....I have a nice size savings and I finally got my middle FICO score to 720, but now I'm confused as to when to start the process and who to use. I heard about NACA and keep going back to it to read up on it more. I really want to do it but have heard about how slow and tedious the process is. I'm not in too big of a hurry, I just want to close by Dec 1st so I can get the First Time Homebuyers Credit. Ideally, I would like to be in a home by August/Sept. Do you think this is realistic with NACA...I go to my first meeting this coming Saturday. Also, will they let me use my own realtor? I don't have one, but I have some referrals and I was going to start interviewing in a few months.

Any advice will be greatly apprciated!

[Anonymous]

Oh and also, does anyone have any experience with the offices in Dallas, TX?

[luvs2barre]

Do you have at least 3.5% down? If so I would recommend going with FHA. I don't think you would need to go with NACA since your scores are great and you have a nice size savings. You could possibly even go conventional but I have heard only some banks are still allowing 5% down.

Good luck! I don't see why you wouldn't be able to buy by Aug/Sep!

[Anonymous]

Please go to the workshop and have your one on one meeting with your counselor and I believe you yourself would want to buy thru NACA.  Remember NO DOWN PAYMENT, NO CLOSING COST & NO PMI.  I too am buying thru NACA (jump on the thread sometimes) and I have had a very pleasent experience.  I am very good at keeping my bills paid and looking for the best deal and I found that thru NACA.  Your interest rate will be 1 full percentage rate lower than the national average. Today on their website it is 4.75%.  If you have your ducks in a row, have your paper work in order i.e., check stubs 2 years of taxes, bank statements, credit card statements etc. You are willing to be accountable, NACA is for you.  I have my own agent and that's fine with them. NACA is not for people who can't get a mortgage thru a conventional Mortgage Company, it's for any one who looking for a great deal.

[Anonymous]

Thanks Gigi!

Which one are you going through? I heard it is worth it once you make it through. Where are you in the process, how long have you been doing it?

I also headr that I may be able to get more house for my money if I go through NACA becasue I don't have to pay PMI, CC, or DP....I would like to keep my savings for emergencies and new furniture! LOL

How are some people getting lower than 1% rate? Are they buying down the rate?

[Anonymous]

I'm in Chicago, I've been with NACA for 4 months and I'm at the underwriters stage.  At NACA you to underwriting to receive your letter to shop with.  They do take you thru the ringer to make sure everything has been detail and you have explained anything that has appeared on your credit negatively.  You will not belive your payment because of no PMI and closing cost being rolled into the loan.  NACA encorages the sellers to buy down the buyers interst rate.  they can but it down buy .25 % for the cost of your mortgage.  For instance if your mortgage comes out to be $630.00 per month.  $2,4520. brings it down a full point, so instead of 4.75% you are now locked into 3.75% for the life of your loan.  You can even buy it down if you like but most of the time the seller will pay closing so if its $5,000.00 dollars. that can pay you down a full 2% (2.75%) you can go as low as 0.125% with NACA.  Be patient, make sure you fax/upload all documents before your first meeting and bring the hard copies with you.  Before you leave your first one on one appointment make your next one for about 4 - 6 weeks later. Email your counselor and stay on top of everything they ask you to do.

[Anonymous]

I went to a mortgage broker for FHA and was approved in three days.

If you have 3.5% down and want to ensure you buy before 12/1/09 to get your $8K use FHA.

NACA is for those with bad credit histories who need coaching and help to raise their scores.  You are already at 720 and don't need help.

...not trying to offend anyone.........that is what the NACA program is designed for. 

[Anonymous]

Here you go again 111mel.  That is not what NACA is for.  It helps eveyone purcahse a home if you have good or iffy credit.  We know you hate NACA 111 but the truth is the don't even look at your score, they do absolutley nothing to try to raise it either. They make sure you are responsible enogh to take on this debt and the other finacial burdens that come with home ownership. You have never went to a NACA Workshop, meet with a counselor or probably even flipped thru their book.  It is for anyone who would love to buy a house with a very low rate, no pmi and no closing or down payment.  If most people would have bought thru NACA we would not have foreclosure up 81% from last year.  We would not have had crazy loan products being bundle up and sold, that are now worth absolutely nothing. You try to paint everyone with the same brush and do you know what that's called?

[MsKiwi]

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@Anonymous wrote:

I went to a mortgage broker for FHA and was approved in three days.

If you have 3.5% down and want to ensure you buy before 12/1/09 to get your $8K use FHA.

NACA is for those with bad credit histories who need coaching and help to raise their scores.  You are already at 720 and don't need help.

...not trying to offend anyone.........that is what the NACA program is designed for. 

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I disagree about NACA being for people with bad credit who need coaching. From what I have read about the program it is an educational program designed to help a prospective homeowner understand the costs involved in buying a home. Nothing wrong with that. I see it no different than people coming to myfico to understand credit.

I see a lot of value in this program. It's pretty much impossible for people to get 100% financing at a lower than national average interest rate. No closing costs, no pmi, no down payment? What is wrong with this? Nothing, IMO it gives the chance for a larger percentage of people who can afford rents to actually get into a home.

Not everyone can just jump into an fha loan and sometimes bad credit has nothing to do with that fact. I say ANY program that helps people achieve the goal of home ownership is worthwhile......Don't you?

Message Edited by MsKiwi on 02-18-2009 02:03 PM

[Anonymous]

I am not being negative....I prefaced my comment with not trying to offend anyone.

NACA is designed to teach people how to budget and get their credit scores high enough to qualify for the NACA program....the reason it takes so long is because you need an excellent credit score to finally be 'ready' to get  a loan through this program.  This is a fact and by no means is being negative. 

I give up on this board.  Everyone is getting so sensitive....I am the first person to understand how hard it is to get good credit and maintain and I am just as serious as the rest of us on here who want a home and do it the right way.

Thankfully I close the 25th of March $25,000 less than I was approved for at 5% interest rate using FHA.  I was pre-approved last Tuesday and am under contract for my first house today.

I suggest the person in Dallas PM "Dallasloanguy" and get his two cents!