Its a real stick in the ass when you have 40k in the bank for a long time, and in the course of a few days, between down payment and Home Depot are down to 6k.
why? you just moved where you money is sitting to a slightly less accessible location 
Man I wish I did a 15yr I ended up in a 30 @ 5% and now I pay an extra $250 a month in principal. :picard: Oh and putting a large amount down blows. I had to write a check for a nice sports car. 
In this rate environment it won’t. There are still enough people scared of equities, some permanently, that safe investments are paying dick. As long as the fed funds rate is pretty much 0, spreads will never get much higher. In a normal rate environment it can go either way, in something like the 80’s you want as little down as possible.
If you have no early payoff penalty, just pay more on that sucker. 1 extra payment a year = 22yr payoff.
I know the answer. No PMI. The $50 membership fee is actually part of them covering the PMI. If you have any issues that a bank would have to lean on the PMI, NACA steps in and helps to keep you in your home, and if that fails, they pay the bank out.
My wife works for Bank of America on the NACA mortgage team. Her job is assessing loans that NACA is submitting on their “Home Save” Program. Me and her have looked high and low at mortgage options, and we are pretty confident that NACA is the absolute best choice for what we are buying. Check out their website and if you have 4 hours to waste and be bored to death, go to one of their seminars in Kenmore.
Here is what they advertise and are dead serious when they say it:
PURPOSE: Purchase Purchase & Rehab
PROPERTY TYPES: One to Four Family, condos, and co-ops. Existing, New Construction, and Renovations
DOWN PAYMENT: None
CLOSING COSTS: None (paid by lender)
INTEREST RATE: One percent below the prime market rate
Current Interest rate: 4.75% 30 year fixed (as of 1/8/2009)
BUY-DOWN: Additional funds can reduce the interest rate Paying one percent of the mortgage amount up front reduces the interest rate by one quarter of a percent (.25%)-- a tremendous added benefit.
APPLICATION FEE: None (paid by lender)
POINTS & FEES: None (paid by lender)
CREDIT HISTORY: Perfect credit not required
P.M.I.: (Private Mortgage Insurance) None
NSF/Membership: (Neighborhood Stabilization Fund) $50 per month for five to ten years
This payment occurs once you purchase through NACA and is part of your mortgage payment. This is a required payment as a NACA Homeowner Member, and as a Member you can receive assistance to NACA’s membership assistance program if you are ever at risk of losing your home. You would also receive the other benefits of NACA Membership.
OTHER TERMS: No yield spread premium; No pre-payment penalty; No balloon payment; No required credit life, or other unnecessary or overpriced insurance.
Talking with the guy in charge of the buffalo office, most people will have a 5 year $50 charge. If you are making your payments on time it will go away in 5. The ten year is for people that take out $260,000 loans or miss payments.
I don’t have an early payoff penalty. I essentially make two extra payments a year right now but am not changing it once my star+combat vet tax breaks hit so its going to be like three extra payments a year lol.
Most people don’t have 20% of the home value sitting in the bank let alone 5%. So a no down payment loan is the best ever for people in this situation who would otherwise have no choice but to throw their money away on rent.
Mine was that much worse because I already lived in/owned 1/3 of the house. I didn’t even get a new place to live after I handed over the check I coulda bought a C6 with. Just a piece of paper with my name on it only and sole possession of the tax bill 
Like I said
I’ll be the first to admit that I have absolutely NO CLUE what is involved for financing a house. I haven’t even explored any of my options. I just happened to see what Clean Baldy had said and did the quick math using those numbers. I figured I was probably missing something. What I do know is that if I were looking right now, I would have close to nothing to put down. So I was just curious as to what other hidden fees there could be to NACA and how the pros and cons weighed against a normal 20% downpayment.
edit-
And thank you.
I do not have 20%, but we have close to it. We will be using some of that money to do upgrades to the house instead of dumping it all into the mortgage down payment. The rest we will have the option to lower the interest rate or use as a payment on principal. I will be using it against principal as we will be moving out of the house 5 years after we purchase it. We will also be making double or triple payments every month and building equity very fast. Therefore us not putting 20% down is very beneficial.
It will not cost me 36K in interest no matter how anyone spins the math, and I get to have a nicely remodeled house vs. a house that is perfect to someone elses tastes.
if you’re getting rid of the house in 5 years, why pay anything more than the basic payment? (what’s your logic here)
So, to get NACA do you go to a normal bank first and then to NACA or go directly to an NACA office to get the loan through them.
The website makes it sound like the bank is the lender and they are the backer… I don’t get where to start.
I only started wanting to buy my first house two days ago and already I want to jump out the window…
Even reading the “what you need to know” online doesn’t help give you steps on how to actually accomplish this stuff. And I don’t want to walk into a bank and walk out feeling like a retard for not knowing what I’m doing. LOL
I have a feeling everyone goes through this? Where is my step-by-step guide damnit! This is the 21st century! Where is my app for my blackberry!? 
Jeff,
Sign up for a NACA meeting here.
You want a road map here it is!
I probably mis worded what I said. We are probably not going to sell this house. We will keep it and buy a new place for ourselves and rent this place. I want the equity in this place to be built up, or have it fully paid off so that it will be easier for us to get a mortgage on the new build. But if we decide to sell it, I will have equity in the place, and since it is all remodeled I should be able to actually make a profit on it.
Thanks. I was looking at that earlier and was thinking of going to the workshop. It isn’t until the end of the month, so can I still go to banks to get pre-approval so I can at least start looking at homes that at least I know I can get the $$$ for?
Or, if I go NACA am I wasting time getting pre-approvals?
NACA is the bank basically.
that makes more sense… but you do want to weigh out the value of having more equity vs. a much larger lump of cash on the next place. The cash is always more versatile and the interest rate on your next home will be a lot higher.
So if you are applying for the NACA loan do you not have to participate in their program as well as pay the monthly fees? Found this on there website…Or is this just some mumbo jumbo.
Participation
Advocate for Economic Justice. NACA’s success has been the result of the active participation of NACA Members and supporters. As a NACA Member, you need to begin to fulfill your Membership commitment of participating in at least five actions and activities a year in support of NACA’s mission. There are numerous activities to take part in, including participating in demonstrations, volunteering in the NACA office, serving on a peer lending committee, and assisting new Members with the home buying process. Contact your local office or NACA’s national office at 1-888-297-5568 to discuss how you want to fulfill your commitment.
out of pocket for my house which was two weeks ago was around 18k and the house price was 221k