Downpayment Assistance Program- Know anything about InvestAtl?

Question

Hi there!! So initially I was considering 'house hacking' a MFR but seems that within the perimeter of Atlanta the pickens are slim. Just recently heard of invest atlanta program where they provide assistance towards the purchase of a home.. want to know your thoughts? 😩😩Any advice is welcomed..

Marcus Cannady · Answer

@Ashley Sanchez how stringent they are depends on the loan program you opt to use from them. They have a program that allows you to do a FHA loan and will give you a 5% grant towards closing costs. they're out the deal as soon as you close as the grant will immediately be forgiven. This would work if you're concerned with the lien. That's their, "HOME Atlanta 4.0" program. Here's the full listing of their offerings http://www.investatlanta.com/intown-living/homebuy...To @Shawn Ackerman's recommendation, there's also NACA. However, NACA is VERY concerned with you staying in the home as an owner occupied. They can tack on a lien if you try to turn it in to an investment property. The upside with NACA is you don't have to buy in Atlanta only. It's a national program, so you can buy anywhere. They're also going to give you a 100% loan and cover closing cost. You can buy a home and only have to pay for ancillary expenses - inspection/ appraisal/ etc. They also offer a renovation loan component. This program is definitely NOT for an investor, however....surely there are ways to hack this. I would consider NACA for a MFH.As far as clarity around owner occupied, my experience is that neither program is going to tell you how to workaround their stipulations. There are rumors on how to workaround this, however it's hearsay, and at the end of the day you have to weigh the cost/ benefit of trying to get around it. Ultimately, they want you to remain in the home, and if you buy another home and move to live in it full time you're somewhat exposed to their rules.Hope that helps a bit.

Ashley Sanchez · Answer

Shawn Ackerman Thanks for the information!

Ashley Sanchez · Answer

Tim Trumble Thanks!

Ashley Sanchez · Answer

Thanks a bunch Marcus Cannady Tim Trumble! I appreciate your recommendations and comments. I was unaware of the NACA program and will review their information to see if it fits my criteria and long term goals. My goal at this time is to exit my apartment and 'househack' a MFR for 1-2 years and become a part time investor by continuing to work my FT job. Initially I steered away a from these programs because the stringent government rules and the thought of having a lien placed on my home. But because the Atlanta market is limited and competition is fierce amongst cash and conventional loan buyers (I'm approved for fha) I said I would consider a SFR for now and then purchase an MFR with my home equity. So we will see😃👊

Tim Trumble · Answer

@Ashley Sanchez Based on your profile, the NACA program would probably work for you. You noted that you intend to make the property you are going to buy your place of residence, which would meet our owner occupancy requirement. Very simply, you MUST live in the property for the entire time you have the NACA mortgage. We enforce this with a $25,000 lien that is placed on the property beginning at closing.The NACA program allows you to buy yup to a four unit property just as FHA does. Also, most down payment assistance programs are compatible with the NACA program, but the funds are used to buy down the interest rate since NACA is a no-down payment program, and the interest rate buy down is a more effective use of the funds anyway.I do have to express a note of caution about Marcus Cannady's comment, "This program is definitely NOT for an investor, however....surely there are ways to hack this". The owner occupancy requirement is an absolute, and going into the program with the intent to find a way to avoid the requirement is potentially stepping into some very dangerous territory.The place to find out more about the NACA program is by at a NACA Home Buyer Workshop, which can be located on the NACA website.Tim TrumbleOnline Operations, NACA

Shawn Ackerman · Answer

@Ashley Sanchez take a look at this program. They may be able to assist. https://www.naca.com/

Ashley Sanchez · Answer

Marcus Cannady Thanks a bunch for the information! I will be attending at the end of this month. I was told the program isn't meant for investors but long term residents. I would like have more clarity on the downpayment funds provided to you. I was told it's like a second lien on your home and you to go through 2 underwritings. Also, I wanted more definition for owner-occupant.

Marcus Cannady · Answer

I've gone to their Q&A once, and will be going back again 4/5 as you have to return if you don't buy within 6 mos of attending.They offer approx 5 different options, they vary in terms of the downpayment offered and requirements with respect to your obligation to remaining as an owner occupied person.You MUST buy within the City of Atlanta, with some caveats which I don't recall fully.Ultimately, it's a legit program, however it takes time b/c of the demand for their services. You gotta signup for the Q&A class to get the ball rolling. Even if you never use the program I would recommend signing up for that class ASAP so you have the option open for you at some point.All the best!