All Forum Posts by: Graciela Garcia

Look up NACA.com. It is not for investors, but if you are not on any title, then you can buy and live in a fourplex for almost nothing out of pocket. Bank pays closing, no money down required, no PMI, credit score does not matter so long as you can show one year of responsible credit. Buyer only pays a few thousand for prepaids (appraisal, etc). It is a nonprofit that works with banks, but since it is not for investors you would agree to live in it as long as you have the NACA loan on it. You can sell after a few years, refinance, or take out a HELOC. Although their mission is to help low to moderate income buy a residence, they still help people that dont fit that category. It has been six or seven years since I used them, so I am not sure of any changes they have made to their loan limits. An added benefit is that they have an generous interest rate buydown. Sister bought her rate down to 0.0625% (yes, decimal is in the right spot). Friend got a 1.0something% I got a 2.0825% ( somewhere around there). All three purchases were fixed 30 year loans, but law change did affect how low you can get for 30 year. Right now the 30 year can be bought down to 1.375%ish. Only the 15 year can be bought down to almost zero. Or, dont do the buydown and get 30 year 3.175% and 15 year 2.375%.

I dont currently use a payment app to collect rents, but I am trying to learn more about them.  I only have 3 rentals at the moment.  I read on BP about several recommendations that sounded great.  Someone mentioned the term "PCI Compliant" (or something like that) and something about renters possibly able to do chargebacks before moving out.  One writer mentioned that PCI Compliance is needed to avoid this.  ????   Are these chargebacks possible, and if so how to avoid?  What apps would prevent this from occurring?  I am a "small timer" which also happens to be "tech challenged", so an uncomplicated app would work best for me.  Info and suggestions would really be appreciated.  Thank you in advance.

@Hunter Vigneault. Although NACA is a nonprofit whose mission is to help low to moderate income, they still help anyone. As far as assets, you can own land when you apply for their assistance, but not residential property. That's why it would be perfect for newbies. You can buy tons of real estate after. You are right that normally paying for points for rental property would not make sense, but by getting a rate almost at zero % for 15 year or less than 1.5% for 30 year, the buydown would pay for itself in about 3 years (by the renters). Since NACA does not require a down payment, taking the money that would have been used for the down payment and using it for the rate buydown instead, it makes it easier for newbies to buy a larger/better 4 plex. Sister has 0.0625% and paid less that $100 in interest for 2019 on the 195K SF she purchased in 2013 (I think). By saving $600 per month not paying high interest makes NACA unique. For someone just getting started with their first purchase they intend to live in, it cant be beat.

Look into NACA.com (Neighborhood Assistance Corporation of America). It is a nonprofit and not for INVESTORS. Use them to buy a fourplex. No money down required. No PMI. Bank pays for most of the closing costs. Since it is not for investors, use it to buy your first property. You must live in it until it is paid off or sold. You cant use them if you already have any residential property in your name, so buy through them first then take the money you save to buy another property soon after. They have an amazing interest rate buydown. Imagine being able to buy a 200K fourplex for 4k closing. No money down. Or, take advantage of the interest rate buydown. For every 1% of the purchase price you pay for the buydown, the 30 year rate is reduced by .25%, while the 15 year rate is reduced by .50%. So using today's rates (5/2020), $14,000 can get you a 1.375% and $8500 can take the 15 year down to 0.0625% (yes, decimal is in the right spot). The lowest you can get the 30 year is 1.375% Since they are a nonprofit, they require that you help them twice before you can start using the mortgage program. Filing papers, translating at a conference, helping at a conference...My friend sent them a case of paper and manila folders--easy stuff. They have price caps you cannot exceed, but last I saw, they were pretty generous limits. The nonprofit's mission is to help low and moderate income people, but that is not a requirement.

If you currently dont have real estate in your name, look into NACA (Neighboorhood Assistance Corporation of America). They are a nonprofit and are not for investors. But, if you are willing to live in the property for the life of the loan, it is worth your time to look into it. Imagine getting a $200,000 fourplex for $4000 closing costs, no PMI, no down payment required. I would, though, take advantage of their interest rate buydown. Their buydown is better than what you can get anywhere else. For every 1% of the purchase price you can reduce the 30 year rate by .25 and reduce the 15 year rate by .50. So for the 200K fourplex, $8500 will get your interest rate down to .0625% (minimum allowed and yes decimal is in right spot) or $14,000 will turn your 30 year rate to 1.375%. And these buydown rates would be for the life of the loan, not just for the first few years. Then take your remaining funds and buy additional multi-unit properties. NACA did have 450K purchase limit a few years ago for single family homes and much higher for up to 4 unit. Dont know about these limits now, but worth the look. Although their mission is to help low to moderate income, they are not income based. I am not low to moderate income and I was still able to purchase my SF through them.

For your FIRST purchase use NACA (Neighborhood Association of America). It is a nonprofit that offers amazing benefits. Since it is not for investors, use them for your first property that you will live in while you have the loan. Use them to buy a fourplex. Just yesterday, their 30 year rate was 3.125% and 15 year was 2.375%. No money down, bank pays for almost all the closing costs, no PMI, credit score does not matter so long as you can show one year of responsible credit. If you dont have credit because you are very young or dont believe in credit cards or such, they will use monthly bills such as phone or utilities to show you are responsible. The interest rates can be reduced by using a "buydown". NACAs buydown is amazing. The 15 year can be bought down to .0625% (yes, decimal is in correct spot) and 30 year can be reduced to 1.375% for the life of the loan. Nobody else offers these terms. Because they are a nonprofit, you will need to help them twice before they help you. You can staple or file papers for them at their office or at one of their conventions. Even just attending a convention and taking someone with you counts. My sister translated. I ushered people from spot to spot, stapled papers, stood in the hall at their convention and directed people--easy stuff. Since it is not for investors, make sure your first purchase is through NACA. Since you have to live in property, so go for 4plex. You can buy a fourplex for 200K, pay $8500 for 15 year interest rate buydown to .0625% (minimum required rate), and pay less than 4K for closing. Nobody else can do this for you. Or do a 30 year...14K to do buydown to around 1.375% and around 4K for closing costs (can only reduce 30 year rate by 1.75% due to Dodd Frank regulations blah blah blah). Sounds too good to be true, I know. I thought the same thing. My rate is 2.0625%, sister has .0625%, best friend has a little over 1% 30 year interest rates. Sister paid less than $100 in interest last year on the 160K balance (190K purchase price). Tons of money goes to principal every month and not interest. Because it is a nonprofit, there are a few hoops but worth it. I only had to go to their office 3 times. I uploaded all my documents into their system and my counseling appointments were done by phone. Right now they are doing facebook live webinars. I dont know if this is because of COVID or because they changed their platform to include this on addition to their classes. Last piece of advice...if you do phone appointments wake up early and be their first appointment. Their call center always runs late in the afternoons. Get a large binder and stay organized. If they ever frustrate you, remember you need them, they dont need you. Just say to yourself, ".0625....0625....0625".

Someone on here said Wells Fargo.  

If I could go back in time, I would do things differently. I bought my home through NACA (Neighborhood Assistance Corporation of America). They are a nonprofit that works with banks. What their program does is amazing. Through your participation with NACA, the banks give perks like no PMI, bank pays almost all closing costs, no down payment required, and the best feature is that you can buy your interest rate down to .0625% (yes, decimal is in the correct spot). I would buy a fourplex. Only caveat is you must live in property while you have the loan. I know people tell you not to do interest rate buy downs with rentals, but this is different, because you will live in it and the buy down is cheap. For every 1% of the purchase price, you lower the interest rate .25% for the 30 year and .50% for the 15 year. The interest rates on 5/23/2020 are 3.125% for 30 year and 2.375% for 15 year. For a $200,000 fourplex, the interest rate buy down amount of $8000 would get you a rate of 0.375% for the 15 year. If you want to do the same with the 30 year, $14,000 would take you to 1.375%. The most you can buy down on your rate for their 30 year is 1.75% (thanks to some Dodd Frank regulation regarding purchase out of pocket something or another). But, remember, you dont have to put money down! They encourage people to take the downpayment money and use it for the interest rate buy down instead. Closing almost entirely paid by lender (my loan was through Citibank through NACA). Nobody can go to Citibank and get these conditions. But you can get it if you finish the NACA program and THEY send you to Citibank (in California they also use Bank of America--based on where you live)...NACA IS NOT FOR INVESTORS, so use them for you first multifamily purchase. Then take whatever is left of your 40K and look for another 4plex. Oh, part of the nonprofit is that you must help twice before they help. You can help file papers in their office for a day, send a case of folders or paper to their office, help at their convention. I went to a convention and helped for six hours stapling papers, ushering people to different and giving people directions to the bathroom.. My sister helped translate. My rate is 2.065 (when rates were almost 4). Sisters rate is 0.0625%. Last year she paid less than $100 in interest. Best friend's rate is slightly higher than 1% on her 240K home. Going through NACA will allow you to build up equity fast, then get a HELOC. I used my HELOC to get a few rentals. Looking to get a fourplex next. This was only possible because equity builds quickly. Dont miss out on getting your first property (make it a fourplex) through NACA. it will make it easier to make more investments later.

Look into the non-profit NACA (Neighborhood Assistance Corporation of America). If I could go back in time, I would use them and get myself into a 4 unit. Only thing is you must live in the property. No money down, no pmi, interest rate below market, and interest rate buydown almost to zero possible.

When you are ready to buy your first 1-4 unit property, look into NACA (Neighborhood Assistance Corporation of America). They are not a bank. They are a non-profit that acts as a middleman. Once you complete their little program, then they forward you to banks they work with...I think Citi and BofA (in California), but always act as an intermediary should you ever need them to step in at any point until your loan is paid off. Amazing interest rate buydown, no pmi, no down payment required (do the interest rate buydown instead) and the bank pays most of the closing costs. This program sounds too good to be true, but I used them, my sister used them, best friend used them and my niece will use them. Friends of friends have used them. No, I do not work for them or have any connection, they just offer great benefits to buyers. The interest rate buydown means you can buy your interest down to almost zero. Imagine a 4 unit at .0625%. Yes, decimal is in the right place. That is almost zero. Sister pays $14 per month in interest for her single family. If I could go back in time, I would do things differently... I would have purchased a 4 unit and done the interest rate buydown instead of buying a single family. People might post not to do the interest rate buydown, but this program is different. Don't do a down payment (through NACA), use that money for the interest rate buydown instead. The only 2 requirements NACA has is that you must live in the property for the duration of the loan and the property has to be under a certain price but the amounts are actually quite high. Since NACA is not for investors, I urge you to get your first property through them to take advantage of all they offer. After you are living in one unit and renting out the others, start saving for your next purchace. While other banks do buydowns, none can get you down to almost zero %.