All Forum Posts by: Ryan Brown

Agreed with Nicholas. 

You can also do rent by the room if you can't find a multi-family. 

From my experience and the interactions I had with my NACA counselor, he said there is no "NACA police" so no one is really checking up on you. Its much more of a policy of honesty. I do not know how this plays out when it comes to getting a new home. Not sure what NACA does if you looked to buy a new home to househack, but I assume it would follow the same idea. If they find out I do know they have a lien on the property that you could have to pay if they call for it. Just something to make your best judgement on.

Hey @Ryan Brown I'm an investor & realtor and have worked with attorneys that specialize in NACA (but never worked with a client using NACA). From what I've heard, the process can be smooth as long as you have the right team with you. For example, most attorneys *don't* work with NACA because they have to go through specific training classes to become a NACA approved law office. Same thing for realtors.

Although NACA is a great program for first time buyers, the added restrictions are often constrictive especially given that sellers usually opt for more traditional offers. Agreed with what @Abel Curiel mentioned. 

Hello @Ryan Brown!

Two of the main drawbacks of the NACA program are 1. your property options are restricted to specific locations and 2. there are price limits which could make you less competitive when placing bids on properties.

If you are able to get past those 2 hurdles, the next challenge is the lengthier loan-approval process. Sellers, especially those with a need to sell/move quickly, may be reluctant to accent an offer with this type of loan vs. a conventional, FHA or even VA loan.

My recommendation would be to speak with an investor-friendly lender who can pre-approve you based on areas and properties of interest. They'd be able to take 75% of the projected rental income on a multi-family to apply it to your income thus helping you qualify for a higher amount in some cases.

All the best to you on your search!

Abel