Charlotte, NC · Member since 2018 · 124 posts · 83 votes
Hey Everyone!
It's Victoria, I'm a newbie to real estate investing. Currently just networking and reading books/articles. I went to a real estate meetup last week and someone mentioned using a NACA loan to finance my first investment property. I'm wondering who has used this sort of loan for their investments and how did you do it?
Real Estate Agent/Investor · Peoria, AZ · Member since 2016 · 2k+ posts · 2k+ votes
6y
Would you be using this as a house hack? That may be a possibility. NACA has a lot of hoops to jump through, so I'd check with them for all the details.
No. Property or other real estate investors are not eligible for the NACA Purchase Program. The NACA program is designed to help low-to-moderate income families and people purchase in low-to-moderate income areas to become homeowners. No member of the household can have an ownership interest in any other property.
At the time of closing, the house purchased with the NACA mortgage must be the Member's only home. After closing, the property must be the Member's primary residence that he/she occupies. NACA takes out a lien on the home to ensure this requirement. This does not prevent any Member from selling their house, refinancing, or purchasing additional property after closing as long as they meet the occupancy requirement.
Real Estate Agent/Investor · Peoria, AZ · Member since 2016 · 2k+ posts · 2k+ votes
6y
Would you be using this as a house hack? That may be a possibility. NACA has a lot of hoops to jump through, so I'd check with them for all the details.
No. Property or other real estate investors are not eligible for the NACA Purchase Program. The NACA program is designed to help low-to-moderate income families and people purchase in low-to-moderate income areas to become homeowners. No member of the household can have an ownership interest in any other property.
At the time of closing, the house purchased with the NACA mortgage must be the Member's only home. After closing, the property must be the Member's primary residence that he/she occupies. NACA takes out a lien on the home to ensure this requirement. This does not prevent any Member from selling their house, refinancing, or purchasing additional property after closing as long as they meet the occupancy requirement.
Charlotte, NC · Member since 2018 · 124 posts · 83 votes
6y
@Bob Okenwa Thank you Bob! I attended a real estate meetup and one of the guys mentioned that he used a NACA loan for his investment. Another investor suggested it as well. I'm going to contact him and do more research of my own.
New to Real Estate · Salt Lake City, UT · Member since 2022 · 7 posts · 3 votes
4y
Hey @Victoria Coleman! How did this pan out for you? Im also interested in using NACA to get my first property and will be getting a multi-family home and house hacking. The website said that "No member of the household can have an ownership interest in any other property". So Im curious how that works with growing past my first property. I think we can just refinance out of a NACA loan, so maybe thatd be the only option.
You could use them for your first loan, as long as you start owner-occupied. I'm working with them now. The only problem I've had is that the customer service really varies by department and employee. I think you'll find this feedback in reviews online as well. I had a wonderful employee who was very responsive to help me get approved and jump through all the multiple hoops of their process. Now that I am in the next phase, after approval, with a new department and mortgage officer, they are not being very responsive to me. Looks like I will have to go over their head to their supervisor to get a response, which is never pleasant. However, I'm hanging in there because the terms of the loan are so very good. They are a full percentage point below the standard lending rate, with 0% down payment and no PMI. Good stuff.