Posted 17 June 2003 - 08:16 PM
I should receive all of this in writing within the next few days, but this is all I know at the time and the information on the website is limited at best.
Anyone used NACA or knows someone who has? Good or Bad?
Posted 18 June 2003 - 01:30 AM
Posted 18 June 2003 - 08:31 AM
We are only using my salary, as husband has some outstanding issues on his credit report. My salary is $65K and based on my monthly savings and current rent I can purchase a home with a mortgage up to $1,500, which should put me right in the $250K range. Reserves required include $5,000+2 months mortgage payment ($8,200). Was told by the counselor that she doubted I would use even 1/4 of the reserves, particularly if the seller kicks in closing assistance. The program is legit, is all that they claim, and more. Benefits include:
--No closing costs (you are required to pay prepaids)
--No down payment (seller's may require earnest money deposit)
--Everyone receives Mortgage Rate 1% below prime rate and is not score driven (yes, even if your score is 500, as long as you have had on time rent payments, installment payments, credit card payments in the past 12 months you qualify; so no lates in past 12 months)
--Anyone can participate including consumers with paid charge offs, bankruptcies (not sure of requirements), paid tax liens, paid judgments
--No Income restrictions
--Neighborhood Stabilization Fund of $3,000 [if you become unemployed and can't pay your mortgage, the NSF is there to assist you for approximately 6 months (I think) in meeting your mortgage]
--Maximum house that can be purchased is based on the prices in your area.
--Mortgage will be received through BofA, Fleet, or First Union only
If your income is below the median level, you are qualified to purchase anywhere you choose. If your income is above the median level, home has to be within designated area (the priority area). For the Washington DC metro area, the priority area includes the entire city of Washington, DC as well as cities/towns/provinces within the beltway, plus up and coming booming areas such as Fort Washington, Greater Upper Marlboro, and Bowie. None of which are depressed areas and all have new homes selling minimum of upper $300,000+.
Girlfriend went through the program and highly recommends it. She currently resides in Fort Washington in a beautiful home on an 1/2 acre lot. At the time of her purchase, she was only required to have $3,000 in reserves; did not pay any closing costs; used sellers closing assistance funds to pay all prepaids; brought down the mortgage rate with the seller's closing assistance funds; and received her earnest money back at closing. The deal cost her $0.00 at closing. Home was purchased in December 2001 and she currently has over $50K in equity since her purchase. Friends of friends have wanted to go through the program, but became impatient and chose to purchase a home without NACA's assistance.
The only draw back to NACA, is that the program is becoming more and more popular. Therefore, it takes time to get an appointment. Basically, what it all boils down to if you have the time and patience and the desire to get all the benefits as mentioned above, NACA is worth the wait and patience that you will learn.
If this is truly classified as a gift program, then I sincerely hope that Christmas will come to me in July or August, with a nice big red bow.
Posted 18 June 2003 - 10:47 AM
Willtygart, you donít sound pleased with the program. Where did you obtain your information, and how much research have you done on the program? As you can see, I have given raving reviews by Focused and she seem to have lots of fact, donít get me wrong but your opinion appears to be just that an opinion. Iím looking for facts as you know them or were told by someone using/considered the program.
Posted 18 June 2003 - 12:33 PM
Posted 18 June 2003 - 03:08 PM
It is my hopes that we can purchase a home in which the seller will be providing closing assistance. In the event that the seller does agree to contribute, I do intend to use the sellerís contribution for reimbursement of my out of pocket prepaids and buy down the interest rate. I also intend to request matching gift funds (which is allowed) from the non-profits such as Genesis or AmeriDream or the Hart Program (basically whoever). My intention will be to use these funds to buy the mortgage rate even further (if allowed). If any is left over and Iím not sure that there will be (or even if I can do it), I would like the rest to be applied against the overall mortgage. This is a question a plan to present on June 27.
If there is any doubt as to closing costs, I would like to be clear that the mortgage comes with $0.00 closing costs (outside of prepaids). As there are no closing costs; therefore no closing costs are not rolled into the loan.
Posted 18 June 2003 - 04:43 PM
Posted 19 June 2003 - 07:23 AM
In my opinion, it's a small price to pay over a short period of time for all the benefits you get with this program, particularly since this $3,000 NSF may ultimately benefit me in the long run (although I sincerely hope not).
Posted 19 June 2003 - 11:47 AM
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