Progress through NACA!

[Elisha Keller]

Hi Everyone! It has been awhile since I've posted. I took a few steps back and really thought about real estate and how it would fit into my life. I was tossing around the idea of a multifamily home vs. single family. Although I love MF’s, my boyfriend and I have decided to purchase a large single family and possibly rent out rooms (which I know will come with lots of challenges in and of itself).

The exciting news is that we had a one-on-one meeting with our NACA rep. about obtaining a mortgage. They are willing to work with us and approve us for up to $288k. We will only be looking for $150-200k. I was a bit taken aback when I heard how much they would approve us for but also excited.

For those of you that don't know NACA, aka Neighborhood Assistance Corporation of America) is a group that helps people obtain mortgages that would have a hard time going through the normal system. They assess your income, debt, timely payments and other factors. It is an extensive process. You are required to volunteer five times each year; there are several meetings and a lot of paperwork that needs to be done.

On the plus side--NACA offers you A LOT! You receive counseling (pre and post mortgage). There is no limit on how many points you can buy. There are no closing cost (paid for by the lender) and no down payment. You are able to also get the cost of remodeling put into your mortgage (but you have use NACA approved contractors). There is no PMI but a $50 monthly fee (that helps keep NACA services free).

I found out about this group through a friend and here on BP. We have a few more documents to submit and a phone meeting on Feb. 10th. At that point, our counselor will submit our application to the underwriter.

If you are interested in this program, I would recommend looking into them (although they are not in every city). There are a lot of hoops to jump through (meetings, submitting paperwork, etc); however, I feel it is worth it.

I know this was a long post but I wanted to update folks on what was happening for me and my first home purchase. As well as provide some basic information about NACA. I will post throughout the process so that others can get a sense of how this program works!

[Chuy Gonzalez]

Hi:

I went to my first NACA saturday meeting one year ago in February 2013. On 31JAN2014 i closed on my 3 unit. The details..without getting too personal...I paid about $45,000 out of pocket; $24k was to buy down my mortgage to %2.25...yes...you read that right...%2.25 fixed for 30 years. The other $21k was closing costs that you won't ever be able to get out of.

My mortgage is $520k principal, $31.5K for repairs...A new roof, termite treatment, and bunch of other little things. You have to use NACA's HAND department way overpriced contractors.

The nitty gritty: My mortgage with taxes and interest is $2800 a month, my income from renting two units is $2595. So Every month I'll pay $205 + water and my own gas and electric. My rents are undermarket by $100 a month...so After repairs are done, I will give notice and raise the rents by $100, and then my cost is $105 + expenses a month... : )

The process was a nightmare. I was originally supposed to close in November, then early Dec, late Dec, early jan, mid jan, and finally it happened at the end of January, there is endless, mind numbing amounts of paperwork you will have to provide to NACA. The best thing I did was by own "all in one" printer/scanner/ fax from Costco for $200. You will have to provide the same document 2x or 3x because they cant find it. You will have to volunteer on Saturdays. I was at the end of my rope in January, and ready to throw in the towel, and thought very negatively about NACA at that time... Needless to say, I think the world of NACA right about now, and I would highly recommend them to anyone with good record keeping skills and lots of patience.