The Official NACA mortgage thread

[Anonymous]

I hope this is the right place to ask this....

I am working through the NACA process.  ATD in November.  I'm saving money for buy down, etc.  I am wondering if the buy down funds would be better spent paying off my car.  As a first time homebuyer, I would like to have as much free cash as possible.  Not having a car payment will help.  I am also paying off 4 credit cards and will work on the last two.  

I would rather have that $400 in my pocket each month than paying down the interest.  If this thinking is flawed, please explain!  Haha

[Anonymous]

Hello fabfindz051,

There's a couple of variables involved in determining which way is best to go. If your total non-housing debt payments each month exceed 9% of your gross monthly income, then paying off the car is the way to go.  other wise, it will reduce the amount of the mortgage payment for which you can be approved.

Otherwise, it's more of a personal chioice.  However, saving as much money as you can for interest rate buy down will always be to your benefit. Money used for interst rate buydown will save your three to five times as much money over the life of the loan as the same amount use simply as a down payment.

In short, you should also look at the long term effects of where that $400 per month is going, not just how good it feels in your pocket.

Tim Trumble

Online Operations, NACA

[Anonymous]

@Anonymous 

Thanks for the quick reply.  I have some thinking to do!  

[eblackman]

Good Morning and this is going to be more of a vent and complaint about NACA so my apologies upfront. I have been in this program for 2 years and had my initial consultation in March and it went well. My counselor then scheduled my follow up apt July 20 and to make sure all my action items were uploaded. I then get an email from NACA where my counselor is no longer with the company and my date with another counselor is scheduled for Nov 24. What really bothers me is how far back I was pushed back to speak with another counselor and it also forced me to renew my apartment lease. I have spoken with several people at NACA and was told that's just the way it is and another time was told I was being rude and persistant. Thanks for reading. 

[Anonymous]

My NACA intake appointment is on 9/25 and I am also scheduled for the Achieve the Dream event on 10/26. I am trying to figure out the best path forward.

My Background: My mother gave me $50k this month from my dad's life insurance to use as a down payment or toward housing costs. I used $30k of it to pay off my credit card and car. I am left with my student loans-- graduated repayment plan max of $1200 but I can go to a fixed plan of $960 a month after the CARES act deferment expires. I also have a $37k balance on an Upstart personal loan with a monthly payment of $1080 and an interest rate of 20.9%. I have $18k left from my mom's gift. $6k in savings and will put aside another $2600 October 1 when I get paid. My DTI is now ~16%.

With all this said should I refinance my personal loan with Navy Federal to lower the interest rate and monthly payment so that I can have more money toward the house? Will this reflect badly in my intake since it will reflect a hard pull on my credit? I would have to wait for all the payments I made to reflect in my FICO score next month before I proceed? @Anonymous 

[eblackman]

Hey Leftarm how does that achieve the dream work? I'm on waiting list for the Nov 9 event? @Anonymous 

[Chadius]

Is the combined income for my wife and i, based off our agi on the tax return? For the priority member vs non priority?  

[KBincali]

Hi Chadius,

Calculations are on gross income.

[Chadius]

Adjusted gross correct? 

[KBincali]

No adjusted, top line, gross income.