Terre B., I'm not sure why, but your post has several inaccuracies in it, and the general tone seems more as if your purpose is to discredit NACA more than anything else.
Your statement about "$15K for closing costs" is completely inaccurate. All closing costs on a NACA loan are in fact paid by the bank, either BOA or Citi. You do need a minimum amount of funds to purchase a home with the NACA Mortgage. The Minimum Required Funds ("MRF") are funds you must have available to pay costs associated with the purchase of the property, pre-paid expenses at closing and a reserve for costs once you close. The MRF for the NACA Mortgage is much lower than any other mortgage since the lender pays thousands of dollars in closing costs and there is no down payment requirement.
Also, the statement "you must put the difference between what your rent is, and your estimated housing PITI payment into a savings account for that as well. For a year. Over and above the reserve/closing requirement" is also false. If you are seeking a mortgage payment that is more than your present rent, NACA does require that you show that you can afford to make the larger payment each month without fail by saving the difference each month for a minimum of three months, which we call Payment Shock Savings ("PSS"). The PSS is not in addition to the MRF, but in fact can be counted toward saving for the MRF.
Again you have a misleading statement with "I have a 750 credit score, and when I questioned her on the time frame, she estimated it would be two years before I would receive "permission papers" to buy a home through NACA". Credit scores are not a factor in the NACA program whatsoever. NACA is a character-based lending program that reviews your past two years of financial history to determine how much you can legitimately afford and demonstrates that you can make that payment each and every month without fail for the life of the loan.
Then only ways that it would take two years to become NACA qualified (i.e. "permission papers") would be if you either exited a Chapter 7 bankruptcy yesterday or had literally no financial history of any sort until yesterday. No documents are ever lost in the NACA system since we use an electronic document system in which submitted documents are automatically routed to the member's file. As such, there are literally no physical documents to lose. Additionally, requests to resubmit documents are commonplace in any mortgage program, not just NACA, typically to make it faster and easier for the counselor/loan officer to locate specific documents needed rather than sorting through the dozens of pages in the file.
"He is on his 5th loan officer, starting over each time, since no one has a clue what the previous one had done. He also said that they do a hard pull on his credit each time documents are uploaded, or he gets a new LO, and his credit is now 40 points lower than when he started" are also simply gross inaccuracies.
NACA Mortgage Counselors are on a performance-based pay plan just like any other Mortgage Loan Officer. The typical NACA Counselor makes between $60,000 and $100,000 per year based on their productivity. The average loan officer in the US made $64,000 in 2017, making NACAs compensation plan extremely competitive. It's an excellent opportunity to do well while doing good.
The fact is that the NACA program's below market fixed interest rate, with the ability to buy the rate down to nearly zero, with no down payment, no closing costs and no PMI makes it a truly unbeatable plan, even compared to the CHFA program. And unlike CHFA, the NACA program has no income limits.
The reality behind the NACA program is that it works in Denver and across the country.
Tim Trumble
Online Operations, NACA
