I NEED ADVICE ABOUT NACA

[Michael J Robinson]

Hello my name is michael,and i have a passion for real estate since i was a teen...now that im older i have been working on making my dream a reality....

Im in process of purchasing a 4 family hame through a program called naca.

Have anyone heard of this program?

If so,whats your thoughts on it?

[Phil G.]

@Michael J Robinson

It can be an excellent program for the right buyer, but there are a few drawbacks:

• As previously said, it takes considerably longer to go through the program than just working with a regular loan officer
• Working through NACA can be frustrating. You must go through the process and follow the rules otherwise it will take you longer. Customer service is spotty, at best and dependent on which office/consultant you're working with. You need to be prepared to advocate for yourself to keep things moving through the process.
• You must either be in the target demographic (earning less than median income for MSA) OR be buying in a census tract that is eligible (based on the income demographics of the tract).
• In a competitive market, getting a seller to accept your offer, with the NACA qualification letter, rather than a traditional preapproval letter, can be a challenge.

Having said that.. If your cash is quite limited, so you need a no down payment loan with no closing costs, this may be worth it for you.

If you have some cash and take advantage of the buy-down program, you can get a great interest rate.