I’m curious now as to your overall feelings on the NACA program. You talked it up pretty big in the closing costs thread but now a year later you seemed a bit annoyed with them. What’s your verdict?
Look into the SONYMA program also, but that is income dependent. I did a SONYMA loan with M&T bank at 5.5 percent fixed, and walked away from close with 5 grand in grants, and a check for 2500. We did a 104% loan. I also got the federal first time homebuyer credit on top of that.
WOW I just typed up about a 3000 word essay write up on NACA and I lost it… I will try again tomorrow as I just wasted about 30 minutes 
---------- Post added at 10:03 PM ---------- Previous post was at 10:01 PM ----------
Not to be an ass hole or anything but why the fuck would you want to take a 104% loan? you are paying interest over 30 years on money that isn’t even part of your investment. Say you bought a stove with that $$, you will still be paying for that stove until te day you move or 30 years which ever comes first. OUCH.
Could it have been a sellers concession?
Shitty, but I’m still interested to hear your thoughts.
I just have to get motivated (read, Drunk) enough to write it all up again. I am going to type it in Word this time and then copy it over here.
Yeah I was going to suggest that (the Word idea, at least). I’ve lost a few long winded replies before too.
Digging this up.
I have been working with John @ NACA, but his position has changed within the company, and now I’m with Dwayne. Thus far, the delays have been from the other businesses we’re dealing with and NACA has been fine.
It is damn near 2012 and I’m still waiting for student loan companies to use snail mail instead of RightFax or e-mail. This is ridiculous.
I’ll keep everyone posted on progress, I have documented everything.
And just some points as I’ve reviewed this thread -
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You can buy down points with damn near any loan, but NACA starts 1% below market. So, if you’re getting offers of 4.25 on your loan from HSBC, NACA does it for 3.25 before buying down. When I bought my first house I bought down from like 6 to high 5s. It was a waste of money because I didn’t stay in the house more than 5 years.
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NACA just makes sure you’re prepared for home ownership before they qualify you for a loan. Citibank (I believe) still supplies the cash, and you’re paying them back for the mortgage. Not NACA.
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If you’re even considering buying a home and want to save some money, go to NACA now. I got prequalified over the phone by 2 banks. Getting prequalified by NACA will take no less than 2 weeks. And that is if you have your finances in order. They require documentation for everything. It doesn’t matter how good your credit is or how much money you make or how little your monthly expenses are, you need it documented.
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There are no income limitations, but you can only spend $204k on a single family home. More depending on how many families the house can accommodate.
So overall, thus far, has NACA been worth it? Keep us updated here. I’m hoping to be in the market next summer and am still on the fence on whether I should go with NACA or not.
Well, worth it is hard to say, they haven’t pre-qualified me yet because my wife’s student loan paperwork hasn’t come from the lender because their computers crashed. I’m thinking this has something to do with the Juniper bug.
I did the Home Purchasing seminar for 2 hours or so. Because I did hours upon hours of research before that I knew what I was getting into, no surprises there.
I did the preliminary intake meeting with my counselor on very, very short notice. I told him I put an offer in on a house and that the sooner I could see him the better. He moved me up an entire 3 weeks.
I have been gathering documentation since then. The counselor has returned all calls in very short notice. He has responded to all e-mails very quickly as well.
They have been great, but I also haven’t gotten any money from them yet.
Put it this way, my wife and I are just under 800 credit scores, our debt to income is stupid good… (I make twice what she does, and she can pay our bills alone) … we have no collections or black eyes on our credit. We could get a loan from anyone at a great rate. I could put 20% down to avoid PMI…
I AM STILL GOING WITH NACA. It doesn’t matter how you look at it, NACA is cheaper than any alternative for mortgage lending. I have not found a cheaper alternative.
Now, since I can’t stick with 1 thing very long, I’ve been considering just building my dream house… in the event that I choose to build I don’t think NACA will give me a loan for it. Not only is the house going to be more than the $204k allowed, it will be a new build. I don’t think they do construction loans.
Doesn’t matter if the house is $300k and you’re mortgage is for $204k, they won’t do it. It is based on the purchase price of the house.
Thanks for the info. I’m usually a pretty patient guy when it comes to things that will save me some money. So even if there are hassles and obstacles here or there, I normally can deal with them in stride without getting too bent out of shape. So considering that you’re doing this even though your finances don’t force you to, is making me give this even more consideration. I should have enough to put 20% down on a starter house next summer, but this might be a better alternative if my wife and I decide to move into a “nicer” home to start.
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Since the spammer bumped the thread…
Still waiting to be prequalified… they didn’t understand my pay-stub… so I had to get HR to send them a letter (which I just scanned and e-mailed) but it still takes days to turn this stuff around.
Unfortunately, now the holidays are going to wreak havoc on my buying plans and I may lose the house after 3 months of NACA crap. If I do, I’ll actually stick with the program because it will still save me $3-400/mo on the next place i try to buy.
Is this a brand new house you’re looking to buy or has the house you have been looking at buying just been on the market for 3 months? I don’t know what the average is for homes to be on the market but 3 months seems long to me. At what point did you start going through the entire NACA process with respect to your search for a house? Like I mentioned above, ideally I’m going to be looking to buy sometime after June this coming year so if I go the NACA route I should probably figure out when to get in touch with them and sign up.
I put an offer in the 2nd week it was on the market. It was accepted and I told them the mortgage I was getting could be pretty time consuming… (didn’t think 4 months) … so it is a “used” house, that I’ve had a “contract” with since I think September.
Fortunately, they are snow birds, so they weren’t doing anything with the house anyway.
I started with NACA in late Sept…
Again, you’re not really supposed to have an offer in on a house before NACA… but I did.
Bump for this. My apartment lease is up in June so starting to get prequalified and start looking. I really wish there was a tax credit like in 2011 but I was not ready to buy a house then.
The low down payment and closing costs is huge for me and really liked this program. I haven’t really saved up for a house much so these with 5% down payment wouldn’t be possible for me.
What exactly is required to join this program and see if I get get qualified for it? I would like to make sure I have all that stuff setup before I really start looking at places. From what I read there is a $50/month membership fee for 5-10 years?
Meh, I went through FHA and it took less than 45 days from my offer to closing. 4% interest rate and a buddy of mine just got 3.75% for 30 years. Closing costs were almost $20,000 and I didn’t avoid paying MPI/PMI - however I’ll only pay MPI/PMI for less than a year after I can get this LTV to less than 78%. I wanted to avoid PMI but it would’ve required another $20k+ down and to lose all my liquidity as a first time home buyer to avoid paying $200/month for a year, makes little to no sense to me.
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Going standard FHA, you’re going to have to figure you’ll need ~10% for closing costs/taxes/fees/etc. If you don’t have 5% liquid to put towards closing costs, I’d find a way to live rent free or damn near it and save for another year. Home ownership is a cold bitch man, between getting the place just how you like it and paying everyone who has their hand out, you’ll go broke really quick if you don’t have a nest egg.
Do you have a 15 year term? With 30 year pmi cant be taken off till after 5 years and 78%.
Ya that is what I have been seeing. Most closing costs estimations I have researched for a $180,000 house in NY have been between $2,500-$3,000. The range I am looking at to start is a small so the costs should be a little lower and since my dad does inspections, that is another thing I don’t need to dump cash into.
I am not looking for a fixer upper either and can understand that for the first year, I will slowly be adding to it which helps reduce having a few thousand laying around to add stuff to the house right away. I only expect to hold for 3-5 years and then sell or rent out. I just want to pay into something of value. I pay $800/month for an apartment now and would much rather take the tax deductions and have some type of nested value so that has spawned my search for estimated closing cost and loans.
M and T seems to have some programs for low down payment which I may request some info on and see what types of numbers I am looking at for them
15 years or less, MIP can be removed @ 78% aslong as you put atleast 10% down from the get go. :tup:
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On $180,000 house, you’re going to need a lot more than $3,000 LOL
Lawyer fees will be $700 alone. Not to mention the search and title. The taxes upfront will be atleast $5,000 and you’re going to obviously pay for your insurance upfront which will be another $800. Then you still need to come up with 3.5% down for FHA. The $400 you’re saving for an inspection is going to be the least of your concerns. @ $180k and figuring average taxes, your payment is going to be $1,600/month with MIP. If you’re only paying $800/month now and are trying to double it, the bank might think you’re going to get ‘sticker shock’ or ‘payment shock’ and deny you outright.
Your best bet is to have someone gift you $10,000 and try to get a seller’s concession for ~$6,000 and go from there.