If I buy a home through NACA can I use it as an Airbnb?

[Josh Ezeudo]

This is my idea for an investing baby step - using a home I own as an occasional Airbnb. Would that still count as owner occupied in their eyes?

Also, can I refinance with another lender and thus get out of the NACA mortgage? Rates are high now and NACA's lower rate is tempting - but maybe in 2-3y rates will be even lower?

[Nicholas Jackson]

Quote from @Josh Ezeudo:

This is my idea for an investing baby step - using a home I own as an occasional Airbnb. Would that still count as owner occupied in their eyes?

Also, can I refinance with another lender and thus get out of the NACA mortgage? Rates are high now and NACA's lower rate is tempting - but maybe in 2-3y rates will be even lower?

There are a few things to consider. If it is an occasional airbnb are you living there fully occupying. Its possible to consider buying a multi unit to live in one and you can use another unit as an airbnb freely. If its a single family home it would be a bit more difficult unless you had an ADU to use as the airbnb while occupying the main unit. With NACA you can sell or refinance at any point but NACA puts a 25,000 dollar lien on your home that doesn't fully come off for 5 years. If you sell or refinance in this period they can claim this lien on your home. This can only be lifted in matters where it would be necessary for you to sell or refinance i.e. job moving, death if family, divorce, etc. so while appealing from a low interest rate stand point, the program is designed specifically to prevent investor usage. Best is to analyze your situation and see if the program still offers what you need while helping you reach your goals financially. Hope this helps!