![]() ![]() We decided to go with a friend of a friend for a real estate agent instead of using a NACA agent. There were some conditions that needed to be satisfied but ultimately we were NACA qualified by and officially began our house search. NACA qualified, is essentially your pre approval, but it’s a lot more arduous to get than a normal pre approval. We completed all the action items our original MC gave us, but our new MC basically went over everything again and gave us some more action items to complete prior to submitting our file to the NACA underwriter for qualification. met with our new MC (previous one left NACA for a better job opportunity - I’ve read that this can be a stress point for some as not all MC’s are made the same). There are specific rules and guidelines to this portion. Non priority members interest rate is 1 whole percentage point higher than non unless you buy in a lower income area. Priority members get a lower interest rate and can purchase a home without having to worry about the median income of an area. This is also where you find out if you’re a priority or non-priority member (we fell into the latter category). We were given some action items to complete and scheduled a follow up meeting. You have to show that you’re financially prepared for a home - this program doesn’t want you to fail. I can assume many people aren’t and this is the part of the process that takes the longest. They will tell you what your estimated minimum required funds (MRF) that you’ll need to close (2 months mortgage, home insurance, etc) and go over your payment shock savings (estimated mortgage-current rent = PSS). Look for any issues - if you have prepared and are already for homeownership, this is a relatively easy meeting. Something we didn’t realize is that whatever that mortgage number that you calculate here, you cannot go over when it’s time to look for a house. Discuss what your home budget is and do calculations to ensure your mortgage (including insurance and taxes) will be under 1/3 of your monthly income. first meeting with original mortgage counselor (MC). ![]() Once submitted, only then can you make an appointment with a mortgage counselor. You must attend the workshop and obtain an ID number to begin.Īfter this you have access to the membership portal where you load documentation - W-2, paystubs, bank statements, government issued ID, voter registration (this is a requirement), participation pledge (must agree to help NACA - could be as simple as a Google/Yelp review or as complex as volunteering at events), rental history, payment history, tax returns, debt documentation, budget, and although they don’t use your credit score, they will run your credit to get a bigger picture of your financial habits (and eventually have you write letters of explanation - LOE, prior to submitting your file for underwriting). You will then get your NACA ID number at the end. They explain the history, the entire program and how it works, what the process looks like and you’ll hear testimonials of people’s experience with the program. ![]() Our thought process was if it doesn’t work for us for whatever reason, we can go a more traditional route and if we aren’t under contract by we would extend our lease starting for 6 months. Approval not contingent upon credit score Lower than average national interest ratesĥ. This must be a home (or multi family home) that you plan to reside in for the life of the loan.ġ. You cannot purchase rental property through NACA. You cannot currently own a home if going through NACA. This is a national program and there is an income cap and thus a mortgage cap (the cap is higher if you’re in a HCOL). The long and short is it is a program that prepares low to middle income people for homeownership and gives them the opportunity to purchase a home that would be unlikely if they were to go the traditional route. (I deleted my I got the keys post out of anxiety )Īnyway we (boyfriend and I - not the point of this post) elected to use NACA (Neighborhood Assistance Corporation of America) to go through the home buying process and I figured I would share my experience and allow this post to be a space to answer as many questions as I can.Ībout us: Both 31 and tired of throwing $2k/month toward rent in metro Atlanta. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |