What is the catch with NACA?

Potential NACA Program downsides include a longer and more rigorous mortgage process, a financial reserve requirement, property price limits and property location limits. Borrowers should understand both the positives and negatives of a NACA mortgage to determine if it is the right program for them.

What are the pros and cons of NACA?

Pros Cons
Low interest rates. Your NACA mortgage will come with a below-market interest rate. Plenty of red tape. NACA mortgages require many in-person meetings, which can take time out of your schedule and make the path to homeownership significantly longer.

Is NACA too good to be true?

The NACA program all sounded too good to be true. … NACA is a HUD-approved company that makes loans to marginal buyers with bad credit or no credit. There are no income requirements, either. Not only that, but no down payment and no closing costs.

Does NACA approve everyone?

NACA is open to everyone regardless of their income or where they want to live as long as they adhere to our eligibility requirements, policies, and procedures. … Every person in your household that intends to be on the mortgage must participate in this process and must complete the NACA Qualification process.

How much will NACA approve me for?

You can be approved for a monthly payment (including taxes, insurance and HOA) of up to 31% of your gross monthly income. However, this 31% combined with your minimum monthly payment obligations can’t be more than 40% of your gross monthly income.

Is NACA better than FHA?

While FHA is a good mortgage the NACA Mortgage is significantly better. FHA requires a down payment, has a higher interest rate, significant closing costs, and high mortgage insurance. … NACA does not require mortgage insurance.

What credit score is required for NACA?

Credit requirements

With most mortgage programs, you typically need a minimum credit score of 580 to 620 to qualify. NACA, on the other hand, doesn’t rely on credit scores. Instead, the program examines your payment history over the previous 12 months.

Can you own a home and use NACA?

The NACA program is designed to help low-to-moderate income families and people purchase in low-to-moderate income areas become homeowners. No member of the household can have an ownership interest in any other property. If my spouse owns a home, can we still purchase a home through NACA? No.

How long does it take to buy a house through NACA?

Many Members can be NACA Qualified (i.e. pre-approved for the NACA Mortgage) in about three months. It should not take more than six months unless there are extenuating circumstances such as a foreclosure, bankruptcy or charge-off within the last two years. Also liens that need to be paid-off may take additional time.

Can I use my own realtor with NACA?

NACA will work with all participants for as long as it takes to become a homeowner. AGENT REFERRALS TO NACA: Real Estate Agents can refer clients to the NACA program. When the Member is NACA Approved, the agent will be notified and the member will be referred back to the referring agent.

How much is NACA membership fee?

The only fees of any sort charged by NACA are yoru annual membership dues of $25.00 and the credit report fee which is $13 (and a few cents).

How long do you have to be on your job with NACA?

You absolutely must have 2 years of consecutive work history and w2’s without gaps. This is a non negotiable requirement. You could have a million dollars in the bank and a 800 credit score and still have to wait until June 2020.

How long is NACA Approval good for?

The actual qualification itself (approval by underwriting) is good for six months. If you have not closed by then, underwriting will have to re-qualify you. If you have kept your paystubs, bank statements, etc.

How does NACA calculate income?

According to a forum read online our income is determined when you average the last 2 years W-2. If that is the case then we will be considered priority (Average is ~$77k). If the income is only based on last year then we are non priority.

How much of a mortgage can I afford?

To calculate ‘how much house can I afford,’ a good rule of thumb is using the 28%/36% rule, which states that you shouldn’t spend more than 28% of your gross monthly income on home-related costs and 36% on total debts, including your mortgage, credit cards and other loans like auto and student loans.

Is NACA a good company to work for?

NACA does an excellent job at offering economic opportunity for everyone especially those that have been shut out of homeownership. It has the best mortgage and seems almost too good to be true.

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