All Forum Posts by: Nicholas Jackson

Quote from @Ramsey Rimkeit:

Quote from @Nicholas Jackson:

Quote from @Jackson Smith:

Yeah I did see that you can use it a second time after 3 years if you no longer held the NACA loan in the first property. I was just mainly concerned about growing a portfolio of conventionally financed properties while I house hack in my first NACA financed property.

This is my current plan, and I am almost at the stage of getting approved by the underwriters and sending offers. After closing on the NACA loan you can buy as many properties you like as long as the property with the NACA loan is your primary residence. NACA puts a 25k lean on your property so you can't leave live elsewhere with a NACA loan on a different property. If you plan to live in the home for the entire mortgage you will be fine and can buy other properties freely. If you plan on moving you must refinance out of the NACA loan to get a new primary residence. I believe you can use NACA again while also owning other properties as long as you fit within their income guidelines and are not trying to close on a property while going through the NACA loan process but this part I am not entirely sure on. NACA is geared mostly against investors so house hacking is the only benefit it offers for investors.

I just finished the first intro seminar and got my NACA ID and there are some details I would like to add.

It states in their initial agreement: "Members in the Purchase program... cannot own or hold any interest in other property (excluding land, time share, inherited property without a mortgage, or a mobile home titled as a vehicle) at the time of closing on a home through a NACA Program. However, after the close on their NACA Mortgage, they can purchase other property so long as they continue to live in the property that has the NACA Mortgage."

Also, although refinancing or selling the home removes the lien, it's only 100% removed after you have lived in the house for 5 years. Technically, the lien is charged for those who break the agreement and don't live in the home, but the fee charged for selling in the first five years is called a "Neighborhood Stabilization Payment". For every year you have lived in the home, this "NSP" is reduced by $5000 so that it is no longer due if you sell your home after having lived in it for 5 years. 

This is my major dilemma right now: to commit to one home for 5 years (it will be the longest I've ever lived in the same home since I was 18.).  

 From reading the qualification workbook I do not see this information about the 5 year term. This information below is quoted directly from their workbook.

1. "If at some point you decide to sell or refinance the home, you will need to contact NACA to obtain a release of the lien. NACA will provide a lien release without any charge to you if you have complied with all NACA requirements.

1. These serious actions and remedies are in place to prevent the misuse of the NACA Mortgage. Lenders providing the NACA Mortgage also require owner-occupancy and may have their own enforcement mechanisms. However, these requirements will not prevent you from selling your house at any time, making a profit on the sale, refinancing your house, or purchasing other properties while continuing to live in the house purchased with a NACA Mortgage."

I believe you can refinance and move out at any point as long as you are in good standing with NACA and ask them to remove the lien in order to refinance or sell.

I also provided the link to the workbook below if you would like to read and explore the options in more detail. 

https://www.naca.com/wp-conten...

Quote from @Jackson Smith:

Yeah I did see that you can use it a second time after 3 years if you no longer held the NACA loan in the first property. I was just mainly concerned about growing a portfolio of conventionally financed properties while I house hack in my first NACA financed property.

This is my current plan, and I am almost at the stage of getting approved by the underwriters and sending offers. After closing on the NACA loan you can buy as many properties you like as long as the property with the NACA loan is your primary residence. NACA puts a 25k lean on your property so you can't leave live elsewhere with a NACA loan on a different property. If you plan to live in the home for the entire mortgage you will be fine and can buy other properties freely. If you plan on moving you must refinance out of the NACA loan to get a new primary residence. I believe you can use NACA again while also owning other properties as long as you fit within their income guidelines and are not trying to close on a property while going through the NACA loan process but this part I am not entirely sure on. NACA is geared mostly against investors so house hacking is the only benefit it offers for investors.

Quote from @Jonathan Taylor:

@Jackson Smith you can buy other properties if your fiestwas with a Naca loan. But naca is a one off. Once you use it, you cannot obtain another naca loan.

Just wanted to add on here real quick. You can use NACA for another NACA loan there is just a grace period of a certain amount of years, an income limit, and it must be your primary residence when you use the NACA program. 

I would have to agree here with the other posts. I have been looking in the St. Louis area myself and from all of my calculations for doing a house hack a duplex rarely will cashflow you but saving money on rent is important to consider especially if you will move out and rent both units out after a year or so. Triplex and above is usually what it takes to cashflow in a househack but cashflow need not be the only number to consider when you are doing your calculations. Also keep in mind you want to be comfortable where you live as well and buy in an area that will have increasing value over time. 

I am currently going through the NACA process now and I just suggest doing your research and weighing your options before making any decisions and commitments as large as a home purchase let alone multifamily. NACA has 0 downpayment, 0 closing cost, no PMI, and around a 3.875% interest rate and you can but any property 1-4 units. Sounds great but you are required to live in the property for the duration of your loan. They put a 25k lien on your property and if you break the rules NACA has in place for your mortgage they can foreclose on your property. NACA is also for people that have low income and are less likely to get favorable terms from other lenders. If you make above a certain i come you may not qualify. The process can also be long and draining as there are many things they require for you to be pre approved which could take months to a year for the prepping process before you can even make offers on properties. FHA Loans are usually between 3-5% down and are for first time home buyers (although FHA loans can be taken out multiple times within a certain time frame). With FHA loans you will have a downpayment and closing cost usually and PMI would be included but you would be able to close much quicker if you qualify. Also the seriousness of passing inspections and closing on properties after negotiations vary between the two processes. Knowing what you want, what works best for your circumstances, and fully educating yourself before committing to a specific product will make it much easier when you actually decide to go through the process. I hope this helps!

Hello Everyone,

I am a new pro member here and have been doing a few things for analysis. I have analyzed this deal in terms of a house hack. Would be great if anyone could provide any feedback for the numbers. Thank you!

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*This link comes directly from our calculators, based on information input by the member who posted.