ybrew

What can you tell me about NACA?

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In this thread:

http://www.debt-consolidation-credit-repair-service.com/phpBB2/viewtopic.php?t=43991

Tourniquet416 mentioned NACA.com as a no downpayment/no closing cost program.

I've done a small amount of research on them thus far, and they seem good. Almost too good. Their goal seems to be to combat 'predatory subprime lenders".

They have a zero downpayment/zero closing cost program. They say 75% of the people getting loans through them would normally get subprime loans. Their rate today is 5.875% on a 30year fixed. That's a DAMN good rate. No fees, no pmi, no closing. They require 2 months payments in the bank and 1 year insurance. I don't have full details as I haven't gone to a workshop yet (but I am signed up for one).

Anyone use them before? Care to share your story?

The only thing I'm not thrilled about is the requirement that your real-estate agent needs to go through a NACA workshop. I've read their agent agreement and it doesn't appear that the agent has to pay any fees or commissions if the agent and the client have a pre-existing relationship. But I do have a signed agreement with an agent - a discount broker. I'd get 2% back if I used this agent. But this agent may not want to go to a workshop - especially since she's not getting her full 3% cut.

I'm sure if the agent stands in the way of me getting good financing, I could fire her/break the agreement. But I don't want to consider that unless I know NACA is the real deal.

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We were going to go through them initially. We went to the seminar and we went the first scheduled meeting. Everything was going great until they told me I HAD to live in a certain area. We couldn't get a house outside of the city becuase of the neighborhood stabilzation clause :shock: This was not going to work for us. We looked really hard at different neighborhoods and we just didn't fall in love with them. Then we found a builder we wanted to go with and guess what? It was on the outskirts. They said my husband made too much so we weren't able to move to where we wanted to. Besides that, they are legit and they have the best rates EVER! Good luck to you.

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I've been told the area I want to live in is Ok (my income is way too high for low/moderate income).

I probably can't verify the area until the seminar but I have that scheduled.

My only concern is my agent. I can't get another agent because we already put our current agent down with the builder. She may not go to the seminar. I hope that doesn't turn into a big issue.

thanks

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How do you find out if your area is eligible before going to classes and meetings?

You can try to call and find out.

I did. The info they gave me is way different than what I see on their website. The website says max house price is 200,160. On the phone they told me 260,000.

The house I'm buying is closer to the 260K number. If the limit is 200K, I'm SOL.

I also already have a realtor. That's supposedly a no-no before going to the meeting.

I still plan to go to learn what I can. I'm thinking I won't be eligible for NACA, but I'll find out.

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We used NACA and just closed on our home last Thursday! It was an awesome experience -- they walked us through every step of the homebuying process and the absolute best thing about our home purchase experience is that we got an interest rate of 4.875% by going through the NACA program! Awesome!

Going through NACA requires great patience, but it was sooo worth it -- especially for 1st-time homebuyers like us, especially since they walked us through every aspect of our purchase. NACA works intensively with its members to prepare them for the mortgage application process. They complete the NACA Credit Access stage, which verifies that they have the necessary documents and meet the underwriting criteria. Loans go directly to the underwriter, and then NACA Housing Consultant works with the buyer on any follow-up. As a result, over 95% of bank applications are approved, compared to the usual rate of 70 to 75%. The high approval rating produces a positive halo for the lender, BofA. Anyone interested should definately check out their website, www.naca.com, for more information and to find out if NACA is available in your location.

When DH and started this journey toward homeownership, my scores were in the low-to mid-500's. Now, I'm almost in the 700's! I couldn't have done it without Creditboards, Art of Credit and the Credit Info. Center. Thanks to everyone! :D

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NACA members get a mortgage rate of 1 point below prime for whatever the day's interest rate for BOA is. They have a partnership with Bank of America to get more low-to-moderate income people in homes. They are advocates against predatory lending.

There is no down payment, no closing costs and perfect credit is not required. Whatever savings you have can be used to buy your interest rate down even more. A woman at the NACA office we used, closed on her home last month with an interest rate of 2.75%!! I highly recommend NACA to anyone. You have to attend a 4-hour workshop to begin with and then they work with you on any credit issues you may have and then they work with their buyers on every step homebuying process. It was wonderfully easy for us. Again, check out their website. They're not in every city, but chances are they have a location near you.

A lot of feel people feel like their program is too good to be true, but I can attest to the fact that it is genuine. Also included in your monthly mortgage, for the first 5 years, is $50 fee paid into what is called the Neighborhood Stablization Fund, or NSF. If a member is ever in danger of losing their home due to job loss or illness, NACA will make their mortgage payments until they are back on track. As a result, something like 97% of NACA members are in their homes and making payments. The loan default rate is extremely low.

We purchased a 4 bedroom, 3 bath house on a corner lot with a huge screened-in porch and two car garage for $149,000 (it appraised at $150,000) and our mortgage, including taxes, insurance and the $50 NACA fee will be $1,035 per month. We closed last week and move in tomorrow!!!

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How do you find out if your area is eligible before going to classes and meetings?

The thing is they'll work with you until you can get a house. They'll tell you the things you need to correct.

And they do accept people with a bankruptcy.

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Went to my first (and last) meeting today.

Unfortunately the maximum home price is about 55K less than we're planning on spending. The max price seems set in stone, so we'll explore other options.

(Kinda relieved in a way. While this is a great program, they do have a requirement that you have to participate in 5 NACA events annually for the life of the loan. I didn't want to have to do that.)

We should be able to get a good VA loan though. The VA fee is what it is unfortunately, but still beats the heck out of subprime.

Anyway, if you plan to purchase a home at under NACA's max purchase price for your area, definetly check it out and go to one of their seminars.

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Thank you for posting this question. I had never heard of this program. We are moving to an area that NACA works in. We have been looking at some old Victorians, and with the Rehab program, it will work out perfectly. I already spoke with the gentleman who runs the office in our area.

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It's a really good program if it works for you. I've got a friend (a teacher) with some really serious credit issues. Problem with helping her is she's always so busy. But I'm trying to get her to one of these seminars. I think she's a perfect candidate for this.

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I just came back from my first personal meeting with NACA!

Everything looked pretty good.

I gave her my bank statements and she said that I have to have my savings account info. I told her both my checking and savings come in one statement. She said i had some pages missing. I don't know how i could have pages missing when I had just opened the statements when I was in the lobby. So i'll prob just call my bank and have them send me just the savings info.

The only issue she had with my credit statement is an old The Limited charge off account. They had updated it and claimed that my last late was in March 2006. I haven't even dealt with them since 1999 and i'm waiting for them to fall off. She said if it falls off, then she won't worry about it.

I have two other charge offs, but they're not reported as late, so she said she's not worrying about it.

The interest rate is always 5.85 for everyone, which i loved.

They don't care anything about the credit score, which is a relief.

So as soon as I get my statements, and The Limited taken cared of, I'm making another appointment and I should be approved to start looking for a house. :)

She said i had to save $350 per month for 3 months and i think i've done that.

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And about the 5 activities per year.

She asked me what I wanted to do.

I said I'd put a sign in my lawn, help with the workshops, and write my congressmen. She said I didn't have to call them, i could just write them. Those all seem pretty easy. I can knock those all out during the summer.

I could write a letter every week if i had to. that's nothing.

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the housing limit where i am is about $350,000.

but the lady was saying that if you rent out a portion of the house, you could change that maximum limit. Okay, i wasn't really paying attention because i was going nowhere near that amount.

But did you ask someone if that housing limit is set in stone? Was there any way you can change it? I learned some stuff in the private meeting that i didn't get in the workshop, such as they've just included more parts of Virginia.

And the rules change every day, so they may decide to up the limit in your area soon.

I would call two weeks until you get approved for the VA loan.

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I'm about 60K over the limit.

Limit is 201,260. My house is anywhere between 255-261, depending on the last few options we do.

They said no way around that limit in the workshop, but I will call again as I get closer. Still around 6 months away. Construction doesn't start till july.

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I tried to go thru the NACA program but it was not for me. It was actually a complete wast of time.

The Atlanta office is very unorganized and it took forever (3 months!) just to get an appointment to see a counselor.

Furthermore, I had all the documents and credit and they still wouldn't advance me thru the program. During my last visit, they lost all my paperwork and I had to start over. Plus they said I could only buy a $130K house.

I left the program, talked to the perferered lender at the new subdivision, got approved for $160K mortgage in less than an hour, and bought my house 30 days later.

Bottom line, its a great program if you credit is bad and you know nothing about the homebuying process. But if you have decent credit, know what it takes to buy a house, and common sense, just go thru a lender and save time

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We are already half way through the process and just started end of May. I'm willing to deal with the hand holding process for 3% interest rate (after we buy it down from the 5.875% rate that everyone qualifies for).

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We are already half way through the process and just started end of May. I'm willing to deal with the hand holding process for 3% interest rate (after we buy it down from the 5.875% rate that everyone qualifies for).

3% is what i hope to buy my int. rate down to.

I have more saving to do, and i'm hoping the housing prices will come down in my area near the end of the year.

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Does anybody know if NACA accepts contruction of new homes? I have a land/lot where I want to build my house and since NACA sounds good, I want to try it with them, but I don't know if everything applies with a new home contruction????

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I tried to go thru the NACA program but it was not for me. It was actually a complete wast of time.

The Atlanta office is very unorganized and it took forever (3 months!) just to get an appointment to see a counselor.

Furthermore, I had all the documents and credit and they still wouldn't advance me thru the program. During my last visit, they lost all my paperwork and I had to start over. Plus they said I could only buy a $130K house.

I left the program, talked to the perferered lender at the new subdivision, got approved for $160K mortgage in less than an hour, and bought my house 30 days later.

Bottom line, its a great program if you credit is bad and you know nothing about the homebuying process. But if you have decent credit, know what it takes to buy a house, and common sense, just go thru a lender and save time

I have to respectfully disagree with you there. Even if you have "decent" credit, most people wouldn't qualify for the interest rate you can get at NACA. With NACA, you can also "buy down" your rate even further if you have the funds to do so. We also used the Atlanta (Decatur) office and our experience was very positive (and worthwhile!). We got an interest rate of 4.875% IMO, you can't beat that. They had some members who bought their interest rates down to 2%!! Who can beat that?! But I guess YMMV.

Also, NACA IS NOT just for people with credit problems -- they also do refinances. While there IS limit to the price of the house you purchase ($260,00 here, I believe), I think that if you are trying to buy a $500,000 home, why would you even need a program like this?

Because your experience wasn't good, please be careful not to discourage anyone else from using this great program.

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I believe 1 point/percent of the purchase price paid up front equals a reduction of .25% rate, so if the house is $100,000 and the rate is 6.5%, then for 2K up front, you can buy your rate down to 6%.

It can be costly up front to buy your rate down to the 2-3% rate, but well worth it in the long run.

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