NACA Loans in California (Bay Area)

[Carrie Maultsby-Lute]

We're considering going through NACA for an owner-occupied multi-unit and want to know how advisable this is and if anyone has used NACA? I've heard from a realtor-friend that NACA is too cumbersome for a competitive/fast market like Oakland and that it's very hard to get an offer accepted. If you are familiar with NACA as either a realtor, investor, member, etc I would love to hear from you.

[Chuy Gonzalez]

Hi:

I'm trying to do that in SoCal, Long Beach, CA 90805. I have been in escrow on a 3 unit for about a month. Everything you heard about cumbersome is true. Out of 4 buyer's agent's that NACA suggested, only one was even interested in representing me..

The only sellers that will accept offers have a slightly pricey building, or one that needs a bit of repairs, or both. You can only get repair bids from NACA contractors, and their bids are ridiculous ($500 to patch a hole in a wall!)...but you can't get a cheaper contractor, nor can you do the repairs yourself.

I am also looking at having to pay several thousand dollars towards a mortgage buy down. I try to be optimistic when I calculate return on investment, and even if I go against NACA's rules that you have to live in the building (in other words I would rent out all three units) I am having trouble getting the numbers to be positive or even break even every month.

For a NACA mortgage to work, you have to have an incredible confluence of low purchase price, minimal repairs, high rents, and a willing seller...in other words, we have a slim chance in California...the good deals get bought up in cash within days of hitting the mls.

Don't get depressed, and keep looking though...where else can you buy property with no money down?