Scattleb Posted February 17, 2017 Share Posted February 17, 2017 (edited) Good Morning, I thought this would be a good place to share my NACA journey with those looking to buy a home. Like many college graduates, student loans have become a huge barrier with the new rules by the banks. For me, even though my wife and I have a nice income, the loans forced us to go through NACA. So here is my timeline: Sept 24- Attended Home Buyers Workshop During this time, I continued to save my Payment shock (The difference between your current rent and future mortgage payment), paid my bills, and got all of my documents together. Dec 1st- 1st Appointment. Uploaded all of my docs, but my MC told me to just bring everything in since the website makes it difficult for her to keep up with them. No big deal, she rescheduled me the following week . Dec 7th- This time, I brought breakfast for my MC since I knew that she hardly gets to eat in the morning. (She mentioned that at the last meeting). I also brought in my paper work and wouldn’t you know it, my file suddently became a priority. J Dec. 23rd- Submitted to UW for NACA Approval Dec- 25-Dec 30 – Holiday Break, no response. No big deal, she told me this would happen. In the meantime, we found our dream house, and prayed that nobody took it! January 11th, NACA approved and we signed our P & S that day, along with attending the Purchase Workshop. January 17th Credit Access Jaunary 19th Bank App January 20th, Inspection. Found a few minor issues, like loose floors and missing window locks. So to this point, our scheduled close date is Feb 28. There have been few conditions from the lenders, mainly forms that we needed to sign or initial. For the most part, this has been a smooth and relatively easy process. To be honest, the reason we were so prepared was reading this board (Lurking I admit..Lol) and reading the materials on NACA. If you start this journey, be prepared, have all your documents in a binder and be VERY nice to your MC. It will go a long way! Please if you have any questions, I’ll be glad to answer! Our home will be a 250K brand new house, all brick with a basement on 2.25% rate. I could never get that anywhere, and we have “good” credit. Don’t give up! Edited February 17, 2017 by Scattleb misscrb 1 Quote Link to comment Share on other sites More sharing options...
cv91915 Posted February 17, 2017 Share Posted February 17, 2017 Congratulations on the house, and great work being prepared. This always helps the mortgage process. Quote Link to comment Share on other sites More sharing options...
Daddy Posted February 17, 2017 Share Posted February 17, 2017 Congratulations! Best program ever! Quote Link to comment Share on other sites More sharing options...
FullofHope Posted February 17, 2017 Share Posted February 17, 2017 Congratulations on your new home! Quote Link to comment Share on other sites More sharing options...
tiggerlgh Posted February 17, 2017 Share Posted February 17, 2017 Congrats! Seems to work well if you are buying a new home. In my market I don't see it working on existing home sakes. Quote Link to comment Share on other sites More sharing options...
bigpoppa09 Posted February 18, 2017 Share Posted February 18, 2017 I watched a video on youtube a woman told all about her process from start to finish and she said the same thing keep all your docs in a binder ready to go keep checking with them what ever they ask for get it right back to them. Quote Link to comment Share on other sites More sharing options...
cv91915 Posted February 18, 2017 Share Posted February 18, 2017 Binder? How do you keep PDFs in a binder? Quote Link to comment Share on other sites More sharing options...
Daddy Posted February 18, 2017 Share Posted February 18, 2017 I watched a video on youtube a woman told all about her process from start to finish and she said the same thing keep all your docs in a binder ready to go keep checking with them what ever they ask for get it right back to them. You are probably talking about the lady who is a real estate agent. I've seen her videos. This program requires unbelievable patience. If you are willing to be patient, you will save tens of thousands of dollars. Totally worth any headaches. Quote Link to comment Share on other sites More sharing options...
EricDET Posted February 18, 2017 Share Posted February 18, 2017 Good Morning, I thought this would be a good place to share my NACA journey with those looking to buy a home. Like many college graduates, student loans have become a huge barrier with the new rules by the banks. For me, even though my wife and I have a nice income, the loans forced us to go through NACA. So here is my timeline: Sept 24- Attended Home Buyers Workshop During this time, I continued to save my Payment shock (The difference between your current rent and future mortgage payment), paid my bills, and got all of my documents together. Dec 1st- 1st Appointment. Uploaded all of my docs, but my MC told me to just bring everything in since the website makes it difficult for her to keep up with them. No big deal, she rescheduled me the following week . Dec 7th- This time, I brought breakfast for my MC since I knew that she hardly gets to eat in the morning. (She mentioned that at the last meeting). I also brought in my paper work and wouldn’t you know it, my file suddently became a priority. J Dec. 23rd- Submitted to UW for NACA Approval Dec- 25-Dec 30 – Holiday Break, no response. No big deal, she told me this would happen. In the meantime, we found our dream house, and prayed that nobody took it! January 11th, NACA approved and we signed our P & S that day, along with attending the Purchase Workshop. January 17th Credit Access Jaunary 19th Bank App January 20th, Inspection. Found a few minor issues, like loose floors and missing window locks. So to this point, our scheduled close date is Feb 28. There have been few conditions from the lenders, mainly forms that we needed to sign or initial. For the most part, this has been a smooth and relatively easy process. To be honest, the reason we were so prepared was reading this board (Lurking I admit..Lol) and reading the materials on NACA. If you start this journey, be prepared, have all your documents in a binder and be VERY nice to your MC. It will go a long way! Please if you have any questions, I’ll be glad to answer! Our home will be a 250K brand new house, all brick with a basement on 2.25% rate. I could never get that anywhere, and we have “good” credit. Don’t give up! Can you disclose your income % to the median for your area as well as the FHA maximum? Quote Link to comment Share on other sites More sharing options...
Scattleb Posted February 20, 2017 Author Share Posted February 20, 2017 Good Morning, I thought this would be a good place to share my NACA journey with those looking to buy a home. Like many college graduates, student loans have become a huge barrier with the new rules by the banks. For me, even though my wife and I have a nice income, the loans forced us to go through NACA. So here is my timeline: Sept 24- Attended Home Buyers Workshop During this time, I continued to save my Payment shock (The difference between your current rent and future mortgage payment), paid my bills, and got all of my documents together. Dec 1st- 1st Appointment. Uploaded all of my docs, but my MC told me to just bring everything in since the website makes it difficult for her to keep up with them. No big deal, she rescheduled me the following week . Dec 7th- This time, I brought breakfast for my MC since I knew that she hardly gets to eat in the morning. (She mentioned that at the last meeting). I also brought in my paper work and wouldn’t you know it, my file suddently became a priority. J Dec. 23rd- Submitted to UW for NACA Approval Dec- 25-Dec 30 – Holiday Break, no response. No big deal, she told me this would happen. In the meantime, we found our dream house, and prayed that nobody took it! January 11th, NACA approved and we signed our P & S that day, along with attending the Purchase Workshop. January 17th Credit Access Jaunary 19th Bank App January 20th, Inspection. Found a few minor issues, like loose floors and missing window locks. So to this point, our scheduled close date is Feb 28. There have been few conditions from the lenders, mainly forms that we needed to sign or initial. For the most part, this has been a smooth and relatively easy process. To be honest, the reason we were so prepared was reading this board (Lurking I admit..Lol) and reading the materials on NACA. If you start this journey, be prepared, have all your documents in a binder and be VERY nice to your MC. It will go a long way! Please if you have any questions, I’ll be glad to answer! Our home will be a 250K brand new house, all brick with a basement on 2.25% rate. I could never get that anywhere, and we have “good” credit. Don’t give up! Can you disclose your income % to the median for your area as well as the FHA maximum? I'm not really sure how to answer your question, but i'm above 100% of the median income. In Atlanta, NACA has a max of 252,200 for those over the medium income. Quote Link to comment Share on other sites More sharing options...
PatriciaFields Posted February 20, 2017 Share Posted February 20, 2017 Congratulations! What documents do you need to have ready? Quote Link to comment Share on other sites More sharing options...
stacyppl Posted February 25, 2017 Share Posted February 25, 2017 Please explain your student loan situation and why going through NACA was best for you. Also, in addition to the payment shock, what additional funds did you need (reserves) to have in the bank? Did you have any other credit issues that you needed to explain and/or resolve? Thank you! Quote Link to comment Share on other sites More sharing options...
IndyPoolPlayer Posted February 25, 2017 Share Posted February 25, 2017 Binder? How do you keep PDFs in a binder? Acrobat Pro keeps PDFs in virtual binders. But for real binders - that's where we keep our women. Our binders full of women. Quote Link to comment Share on other sites More sharing options...
Daddy Posted February 26, 2017 Share Posted February 26, 2017 Binder? How do you keep PDFs in a binder? Acrobat Pro keeps PDFs in virtual binders. But for real binders - that's where we keep our women. Our binders full of women. 😂😂😂😂😂 Quote Link to comment Share on other sites More sharing options...
Scattleb Posted February 27, 2017 Author Share Posted February 27, 2017 (edited) Please explain your student loan situation and why going through NACA was best for you. Also, in addition to the payment shock, what additional funds did you need (reserves) to have in the bank? Did you have any other credit issues that you needed to explain and/or resolve? Thank you! I'm glad you asked! Well as you know, since 2015 I believe, banks have now began considering the total balance of student loans vs the actual payment. Example: My Wife has $123,000 in Student loans (1 B.S, 2 M.S') I have $65,000 in Student Loans (1 BA) With a traditional loan process we had to account for 1-2% of our total loan as a payment, or in our case combined 1800+ a month in student loan payments. This severly limited the amount of mortgage we can afford. We gross $8200 per month, then you subtract the 1800 and now we have 6400. But we also had $325 per month in credit card debt, and $409 per month in car notes. This brings our available income at $5666 (give or take) 43% of that only allows us to have a mortgage of $2200, but even that requires us to put down 20% that we didn't have, plus about 14K in closing cost. So with NACA, our loan payment is what is reflected in our credit report, or the Standard Payment given by our Loan Servicer. In our case that was $1200 per month, FAR from the $1800 with the standard mortgage. Also, there are no closing cost with NACA. Only your Insurance and Taxes. In total on a 250,000 house, we only needed to bring $1300 to closing So again, NACA is the absolute best mortgage on earth. I know people turn their noses up at what they perceive as "programs for the poor" but I don't care what people think! Our household income is well over 100K and we have credit scores in the 700's. Don't listen to the people all over the internet that say "NACA is a scam" or " NACA is a ripoff". I literally paid NO down payment, NO PMI and the Bank paid my closing cost. My interest rate is much lower than I could ever get. You have to do what is best for you! Get yours! The rich get theirs, so why not go after what belongs to you? Edited February 27, 2017 by Scattleb misscrb 1 Quote Link to comment Share on other sites More sharing options...
tiggerlgh Posted February 27, 2017 Share Posted February 27, 2017 One correction the 1 Or 2% is only used if you don't have a fully amortizing payment (I.e. IBR). In your case they would have used your monthly payment for the mortgage as well. Quote Link to comment Share on other sites More sharing options...
Daddy Posted February 27, 2017 Share Posted February 27, 2017 Please explain your student loan situation and why going through NACA was best for you. Also, in addition to the payment shock, what additional funds did you need (reserves) to have in the bank? Did you have any other credit issues that you needed to explain and/or resolve? Thank you! I'm glad you asked! Well as you know, since 2015 I believe, banks have now began considering the total balance of student loans vs the actual payment. Example: My Wife has $123,000 in Student loans (1 B.S, 2 M.S') I have $65,000 in Student Loans (1 BA) With a traditional loan process we had to account for 1-2% of our total loan as a payment, or in our case combined 1800+ a month in student loan payments. This severly limited the amount of mortgage we can afford. We gross $8200 per month, then you subtract the 1800 and now we have 6400. But we also had $325 per month in credit card debt, and $409 per month in car notes. This brings our available income at $5666 (give or take) 43% of that only allows us to have a mortgage of $2200, but even that requires us to put down 20% that we didn't have, plus about 14K in closing cost. So with NACA, our loan payment is what is reflected in our credit report, or the Standard Payment given by our Loan Servicer. In our case that was $1200 per month, FAR from the $1800 with the standard mortgage. Also, there are no closing cost with NACA. Only your Insurance and Taxes. In total on a 250,000 house, we only needed to bring $1300 to closing So again, NACA is the absolute best mortgage on earth. I know people turn their noses up at what they perceive as "programs for the poor" but I don't care what people think! Our household income is well over 100K and we have credit scores in the 700's. Don't listen to the people all over the internet that say "NACA is a scam" or " NACA is a ripoff". I literally paid NO down payment, NO PMI and the Bank paid my closing cost. My interest rate is much lower than I could ever get. You have to do what is best for you! Get yours! The rich get theirs, so why not go after what belongs to you? Absolute best! Quote Link to comment Share on other sites More sharing options...
luckie clutse Posted March 5, 2017 Share Posted March 5, 2017 (edited) So I went to the NACA meeting today, they said no late payments for one year ...my last late car note was in August last year...do you think I can get started? Alsor, my student loans are 99k and the projected payment is 497 per month on a standard repayment..the IBR is about 136 per month which will they use? Edited March 5, 2017 by luckie clutse Quote Link to comment Share on other sites More sharing options...
Daddy Posted March 5, 2017 Share Posted March 5, 2017 Absolutely, get started now. Go to your intake and your counselor will give you a Task List. Make sure you do everything they ask you to do. If you do, you'll be here next year at this time talking about your amazing mortgage! I can't remember, but I think they will use the IBR. Quote Link to comment Share on other sites More sharing options...
mendelssohn Posted March 6, 2017 Share Posted March 6, 2017 Please explain your student loan situation and why going through NACA was best for you. Also, in addition to the payment shock, what additional funds did you need (reserves) to have in the bank? Did you have any other credit issues that you needed to explain and/or resolve? Thank you! I'm glad you asked! Well as you know, since 2015 I believe, banks have now began considering the total balance of student loans vs the actual payment. Example: My Wife has $123,000 in Student loans (1 B.S, 2 M.S') I have $65,000 in Student Loans (1 BA) With a traditional loan process we had to account for 1-2% of our total loan as a payment, or in our case combined 1800+ a month in student loan payments. This severly limited the amount of mortgage we can afford. We gross $8200 per month, then you subtract the 1800 and now we have 6400. But we also had $325 per month in credit card debt, and $409 per month in car notes. This brings our available income at $5666 (give or take) 43% of that only allows us to have a mortgage of $2200, but even that requires us to put down 20% that we didn't have, plus about 14K in closing cost. So with NACA, our loan payment is what is reflected in our credit report, or the Standard Payment given by our Loan Servicer. In our case that was $1200 per month, FAR from the $1800 with the standard mortgage. Also, there are no closing cost with NACA. Only your Insurance and Taxes. In total on a 250,000 house, we only needed to bring $1300 to closing So again, NACA is the absolute best mortgage on earth. I know people turn their noses up at what they perceive as "programs for the poor" but I don't care what people think! Our household income is well over 100K and we have credit scores in the 700's. Don't listen to the people all over the internet that say "NACA is a scam" or " NACA is a ripoff". I literally paid NO down payment, NO PMI and the Bank paid my closing cost. My interest rate is much lower than I could ever get. You have to do what is best for you! Get yours! The rich get theirs, so why not go after what belongs to you? I don't think anyone says that. What is said is that the process can be long. Purchase offers submitted to sellers are also often overlooked because they are NACA financing (sellers don't want to have issues with the timeline). The caps on purchase price are also an issue for many. If it weren't for the cap on purchase price, I would consider doing it myself. Quote Link to comment Share on other sites More sharing options...
luckie clutse Posted March 8, 2017 Share Posted March 8, 2017 Absolutely, get started now. Go to your intake and your counselor will give you a Task List. Make sure you do everything they ask you to do. If you do, you'll be here next year at this time talking about your amazing mortgage! I can't remember, but I think they will use the IBR. We'll Daddy there is a problem...I have too high of a DTI...they require 31/40...and I can't even get close. Quote Link to comment Share on other sites More sharing options...
Daddy Posted March 8, 2017 Share Posted March 8, 2017 Absolutely, get started now. Go to your intake and your counselor will give you a Task List. Make sure you do everything they ask you to do. If you do, you'll be here next year at this time talking about your amazing mortgage! I can't remember, but I think they will use the IBR. We'll Daddy there is a problem...I have too high of a DTI...they require 31/40...and I can't even get close. Hmmm. Where are you at now? Quote Link to comment Share on other sites More sharing options...
luckie clutse Posted March 9, 2017 Share Posted March 9, 2017 Absolutely, get started now. Go to your intake and your counselor will give you a Task List. Make sure you do everything they ask you to do. If you do, you'll be here next year at this time talking about your amazing mortgage! I can't remember, but I think they will use the IBR. We'll Daddy there is a problem...I have too high of a DTI...they require 31/40...and I can't even get close. Hmmm. Where are you at now? 31/47 Quote Link to comment Share on other sites More sharing options...
Daddy Posted March 9, 2017 Share Posted March 9, 2017 Absolutely, get started now. Go to your intake and your counselor will give you a Task List. Make sure you do everything they ask you to do. If you do, you'll be here next year at this time talking about your amazing mortgage! I can't remember, but I think they will use the IBR. We'll Daddy there is a problem...I have too high of a DTI...they require 31/40...and I can't even get close. Hmmm. Where are you at now? 31/47 At the time when I was getting qualified, I had a $750/mo car payment because I had done an 18 month loan. I sold the van to get rid of this payment. This then lowered my DTI and got me qualified. Can you sell a car or refinance to a longer term with a lower payment, or even change the terms of your student loans? Quote Link to comment Share on other sites More sharing options...
luckie clutse Posted March 15, 2017 Share Posted March 15, 2017 (edited) Absolutely, get started now. Go to your intake and your counselor will give you a Task List. Make sure you do everything they ask you to do. If you do, you'll be here next year at this time talking about your amazing mortgage! I can't remember, but I think they will use the IBR. We'll Daddy there is a problem...I have too high of a DTI...they require 31/40...and I can't even get close. Hmmm. Where are you at now? 31/47 At the time when I was getting qualified, I had a $750/mo car payment because I had done an 18 month loan. I sold the van to get rid of this payment. This then lowered my DTI and got me qualified. Can you sell a car or refinance to a longer term with a lower payment, or even change the terms of your student loans? no..question do they accept IBR for student loans? My appointment on the 23rd.. Edited March 15, 2017 by luckie clutse Quote Link to comment Share on other sites More sharing options...
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