Has anyone used a NACA loan for their investments?

[Victoria Coleman]

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?

[Bob Okenwa]

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.

Directly from NACA's website:

Are investors eligible for the NACA program?

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.

What is the occupancy requirement?

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.