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The Official NACA mortgage thread

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New Contributor

Re: The Official NACA mortgage thread

Hi Anewme, if I understand your question correctly, your form of income will have no bearing on the program. They just want to make sure you are stable and can afford the house you choose.
Good luck!
Message 4691 of 4,702
New Member

Re: The Official NACA mortgage thread

Here is my current journey going through NACA.

I attended workshop two years ago. At that time, I had alot of issues (medical collections, a recent voluntary repo, 2 apts, etc.). Reading all the Naca threads and videos made it clear to me that I needed to get this handled BEFORE I went for intake. Fast foward 2 years after the workshop, I only have 3 collections on my credit (2 of them are medical, one due to fall off this month). The voluntary repo is past 2 years so in the eyes of Naca it is irrelevant.

I had my first intake meeting on April 18th. It went better than expected. I was qualified for 148,000. My MRF are $3900, which I already had the majority of prior so I dont have to save for a number of months, I already had that taken care of. As far as things still needed, I have to pay 2 collections and submit statements, stubs, and some LOE's before my next meeting this month. 

I am hoping that I can get that qualification at my next meeting. The houses in my area are going so fast. I hope I am able to find a home that I love.

I will keep you all updated.

Message 4692 of 4,702
Regular Contributor

Re: The Official NACA mortgage thread

Hello Anewme,

 

You are absolutely eligible to participate in the NACA program.  In fact, federal law states that you cannot be denied because of your source of income as long as it is legal and verifiable (which yours obviously is). Simply go to our website and register for a homebuyer workshop to get started.

 

Tim Trumble

Online Operations, NACA

Message 4693 of 4,702
Regular Contributor

Re: The Official NACA mortgage thread

Hello Noellebelle,

 

Well done!  Patience and persistence always pay off! Stick with it and you will reach your goal of becoming a homeowner.

 

Tim Trumble

Online Operations, NACA

Message 4694 of 4,702
Member

Re: The Official NACA mortgage thread

I do plan on trying to read this thread by I got overwhelmed, fast lol. 

 

I have a few quick questions just based on what I have read. I plan to attend an upcoming event this summer. I recently moved in with my mom in anticipation of this journey so I can save money. I have a friend who just told me she used NACA when she purchased her home which is how I found out about them. Is paying rent important for NACA to know what you can afford? Does having a recent bankruptcy matter? I'm going into my second year since discharge. 

Message 4695 of 4,702
Regular Contributor

Re: The Official NACA mortgage thread

Hello ZAB23,

 

On-time rental payments are a key factor in determining affordability in the NACA program, However, what is more important in your case is what we call Payment Shock. Payment Shock is the difference between your current rent and your desired mortgage payment when it is higher than your current rent. Saving your Payment Shock serves as proof that you will be able to afford your mortgage payment each and every month without fail after you close on your home.

 

Since you are currently paying zero rent, then your Payment Shock would by definition be the the full amount of your desired mortage payment. In a situation such as yours, we would require that you save the Payment Shock amount every month for at least six months in order to be qualified.

 

Regarding bankruptcy, the requirements will depend upon whether it was a Chapter 13 or Chapter 7. If it was a Chapter 7, you will need to build a 24-month on-time payment history on all obligations after the discharge. for a Chapter 13, as long as your last 12 months of paymetns were made as scheduled, you met all other terms of the bankruptcy and were discharged as originally planned, we can proceed without delay.  In either case, we will need full documentation of the bankruptcy, from filing to discharge.

 

In any event, do not let either situation prevent you from starting the program.  Remember, NACA is a finanical counseling program, not just a mortgage application process. Your counselor will guide you through the process and advise you on exactly what you need to do to get qualified at the earliest possible date. That way you won't be guessing what you need to do next and possibly making a mistake that would instead set you back further.

 

Tim Trumble

Online Operations, NACA

Message 4696 of 4,702
Established Member

Re: The Official NACA mortgage thread

I am looking into this program however i have some questions before I dare to get my hopes up.  We have medical collections that total $1100 on our credit report which i can pay off tomorrow if need be.  I also have a lot of student loans - how do those factor?  They have been in repayment for 6 years or so with payments being made.  There is a sngle late three years ago.   I have lived in the same place for 12 years and have 12 years of cancelled checks to prove it if need be.  What are the odds of being approved do you think? 

Message 4697 of 4,702
Valued Member

Re: The Official NACA mortgage thread

From what I recall, medical collections won't hurt you, but with the amount being relatively small, I'd suggest paying them off if you have the means. The late payment from three years ago won't matter at all as it's been over a year. The records of on time rent payments is very important. Your approved mortgage amount is based demonstrating your ability to pay x amount per month. You have nothing to worry about.
FICO8's: 805 - 810 (Summer `19)
8% | $160K
Message 4698 of 4,702
New Contributor

Re: The Official NACA mortgage thread

I agree, you have no problem with this program. It will just be a matter of the time it takes you to get all the info together that your counselor requires.

As far as the loans, they do look at debt to income ratio, and of course how much of your monthly income is dedicated to the payments. So wait to find out what the counselor says before using your cash to pay things down. It could be just wasted effort. I've seen many people comment that regretted using their cash.

Good luck!
Message 4699 of 4,702
Contributor

Re: The Official NACA mortgage thread

Does NACA operate in Kansas? I'm having a hard time finding information that supports this.
Message 4700 of 4,702
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