All Forum Posts by: Keri Markham

Try NACA, they offer construction loans!

nacaQualificationGuideLines.pdf (nacalynx.com)

Keri Markham

Exhaust all your options before making a decision. Obtaining multiple opinions from different Lenders is key. 

I suggest looking into a NACA loan..

nacaQualificationGuideLines.pdf (nacalynx.com)

The Maximum Mortgage Payment is impacted by a Member purchasing a Multi-Family home.
While this allows the Member to qualify for a higher mortgage amount, owning a multi-family
home is similar to running a small business with the corresponding difficulties. Thus the
Member needs an understanding of the rights and responsibilities of both landlords and
tenants. The Member must also have at least two months of his/her Mortgage Payment (i.e.
PITI) as additional reserves to address tenant vacancies, repairs and other issues.
We require a certificate verifying that you have been through a recognized landlord training
course prior to being qualified. You also must have minimum household operating expenses
for repairs, tenant vacancies and other issues related to being a landlord. This landlord fund
is currently at $400 per month, regardless of the number of rental units, a number which
NACA may adjust.
You should work with your Mortgage Consultant to determine your Maximum Mortgage
Payment for a multi-family home. The calculation below provides the general underwriting
requirements to ensure that you as a landlord have sufficient financial resources.
Net Income Test for Multi-Family Affordability:
Net Monthly income
Plus: 75 % of rent
Less: Liabilities
Less: Household Expense budget
Less: Surplus ($400 and more depending on number of units and area)
Equals: Maximum Available for Mortgage Payment (i.e. PITI)
Example: In this example the Member takes home (net income) $4,000 per month. They
want to buy a three family house. They will rent two units with market rent of $900 each unit.
The Member has liabilities consisting of an auto loan, student loans and credit cards with
monthly payments totaling $800. The household expenses (utilities, medical, transportation,
food, clothes, childcare, pocket money etc.) total $2,000 per month.
Income:
Take home monthly income $4,000
Plus: Rental Income: $1,350
(75% of two rents of $900)
Expenses:
Less: Monthly Liabilities: $ 800
Less: Monthly Expenses: $2,000
Ver.13.2 NACA Qualification Criteria Page 15 of 21
Less: Surplus: $ 400
(unplanned & unbudgeted expenses)
Equals: Qualification Amount: $2,150
(maximum qualified mortgage payment)


Keri Markham

This is an excellent time to be a Real Estate Agent. That is if you are willing to work your butt off. Most newbie agents only make about $24,000 per year their first couple of years. We have a huge turn over because a huge ratio of folks coming into the business think that all you have to do is show some homes and write them up.

No, there is so much more. You have to accumulate a knowledge of your market, financing options, keeping up to date with changing real estate laws, grow a list of clients and market yourself. You have to be willing to work long hours and to spend money on your career. You have to become accountable to yourself and be dedicated to your career. You don’t have a boss standing over you. You don’t have to punch a time clock. You control your own work schedule. You have to understand, I mean really know deep down, that if you don’t put in the work, the time and the effort that you will fail.

I do not want to dissuade you but you need to know what you are getting into. Yes, you might make much more in your first couple of years but most don’t. Most have to put in a few years before they can actually be considered successful. If you do decide to get into the business find a broker or office that will take some time to train you one on one and be available to answer your questions in the evenings and on the weekends. Your real estate classes will teach you how to obtain your license but your real training happens on the job.

Keri Markham, Realtor

“PITI” is an acronym for “principal, interest, taxes and insurance” 

– the four major elements that make up mortgage payments. 

Keri Markham, Georgia Realtor