All Forum Posts by: Eileen L.

Thanks for the advice @brent coombs . I will try.

I also forgot to mention a couple nuances about NACA loans in case anybody else has any input on how to maximize loan usage.

1) I can buy as many other properties I want as long as I buy the NACA property first and live in it for the life of the loan.

2) I can get a NACA rehab loan, although I hear the process is difficult.

3) If I sell all property I own, I can re-qualify for a new NACA loan (as long as it has been 3 years from my first NACA purchase).

I'm purchasing the property with my partner and we have a pre-tax income of about $11000 per month. The properties we are looking at are typically around $2000 PMI per month. In a year our car payments should be about $400. So based on our DTI we should be able to purchase a second property no problem at around $2000, correct?

However, when we want to purchase our 3rd property, I assume our DTI will be maxed out, so we would have to wait 2 years for the rent from the MF to qualify. Is there any way around that?

Sorry for all the questions! I've been reading a lot lately and I'm trying to process it all.

NACA has somewhat of a bad reputation online- but I'm almost done being qualified and it has been great for me so far.

That being said, for those of you unfamiliar, NACA gives you loans with no PMI, 0 down payment, below market interest rates, and you can buy down the interest rate .25% for every 1% of the purchase price. It's pretty unbelievable. There are conditions that 1) you cannot currently own other property and 2) the property must be owner-occupied for the life of the loan.

I thought at first this would be a great opportunity to buy my "forever" home since I would never find a better long-term mortgage. Then, I started to consider using it to buy a duplex in order to start my investment portfolio through house hacking. 

My plan was to buy and live in the duplex, buy a second multi family in 1 year, and then hopefully buy and move into my "dream" SFR in about 2 years.

However, if I wanted to move out of the NACA-financed duplex, I would need to either refinance or sell. Then, I realized since I put 0 down, I would barely build any equity in 2 years so I probably wouldn't be able to refinance easily.

I had wanted to buy the multifamilies before buying the SFR because I wanted to be able to save more money faster and use the rental income to lower my DTI. I was afraid buying a single family house would stretch my DTI and make it difficult to purchase additional multifamilies.

Please, any advice! Should I purchase the single family home first or house hack first? Or do you have other advice?