Selling to a NACA program participant

[Ali Young]

Has anyone had any experience selling to someone in the NACA program? I received a call from someone who wants to purchase a house and advised that they are a member of the NACA program. I searched for information and there are very few reviews in the last 12 months and mixed reviews prior to that.

Thank you in advance for any insite you can provide.
Ali

[J Scott]

I'm going to strongly disagree wi Andy on this one -- besides cash, there is no offer I'd rather have than a NACA offer (I've written about this before).

In fact, I listed a house a couple weeks ago, and got three full price offers the first day -- two FHA and a NACA. The NACA offer nets us 2% less than the others, but we took it anyway. Also, NACA is more stringent on repairs for any inspection issues, but we still went with NACA.

The reason being -- there is nearly 100% certainty that the financing will go through. NACA buyers go through months of credit counseling and the underwriting for NACA buyers occurs BEFORE they are allowed to put a house under contract. By the time, a NACA buyer submits an offer, underwriting on the buyer is complete and the buyer knows exactly how much they can spend on payment every month. All that is left is underwriting on the property (appraisal, inspection, etc) and final underwriting review.

Also, approval is not credit based and buyers don't have to put any money down at closing, so you don't have to worry about a buyer destroying his credit or spending his downpayment between contract and closing. And for reference, NACA default rates are about 1%, and I'm thrilled to support any program that is that successful with buyers.

We work closely with a bunch of NACA agents, and their buyers always get "first dibs" on our properties. I'd sell every last property to a NACA buyer if I could.

Just my $.02...