Naca’s 5 year lien

[Fedna Guillaume]

I’m really interested in starting my real estate journey through the Naca program and house hack. However I was told, with Naca, you have to live in the property as your primary residence for 5years, and they will put a 25k lien on your property that decreases every year by 5k.

Does anyone know of a way to bypass this? I would like to do the BRRR strategy with this property and I only intend on living there for 1year, 2 years max. And yes I am aware Naca is not really an investor friendly.

Any advice?

[Didier Bizimungu]

The $25k lien is so you treat the property as your primary residence for as long as you have the NACA loan.

As with all loans, you can refinance out of a NACA loan into an FHA, Conventional, etc, therefore, removing the lien.

To reiterate, the lien is attached to the loan,there is no contingency for that lien being reduced by time or otherwise, and it can be removed if you remove the loan through refinance or paying it off.