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Old 06-11-2008, 09:34 PM
 
526 posts, read 1,271,845 times
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It sounds like an amazing program...I was able to get into a workshop to attend this Saturday. All I know are the pros from their website, but will anyone share what the cons may be?

I will be driving about an hour to get to this workshop and spending 4hrs and then another 1hrd drive back.

Between time and cost of gas...well, I guess I just reassurance that it is a worthwhile program

TIA
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Old 06-12-2008, 12:22 AM
 
Location: Charlotte, North Carolina
5,137 posts, read 11,756,958 times
Reputation: 975
it's a great program but you're not guaranteed a mortgage.
You will also be paying a monthly payment which isn't tax deductible.

These programs are setup for low-to-moderate income areas, and may take 3-5months minimum to provide financing
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Old 06-12-2008, 11:22 AM
 
Location: Between a Rock and a Hard Place
110 posts, read 334,636 times
Reputation: 67
One NACA con is that they are sloooooow to process things, but they are upfront with that fact. You can minimize the effects of this by following directions and following up religiously. If your house 'is in order' a NACA loan can process just as fast at a conventional loan. I've watched this happen with someone who was serious about getting a NACA loan and could have easily qualified for a higher rate, higher fees, PMI conventional loan.

The volunteer requirement to me is the only obligation worth mentioning. Some may not have the time.

The $50 a month membership fee gets YOU 'mortgage insurance', unlike PMI which protects the bank. Call me crazy but wouldn't it make more sense for insurance to "help the borrower who in turns gives it to the bank to make the payment" instead of skippng the borrower.

In response to Renriq02:
After your 2nd meeting, the first with the counselor, you can be pre-approved. If you do not qualify for preapproval that day they tell you all you need to do.

Monthy payment which isn't tax deductable? Are you talking about the $50 fee? You cant be talking about the mortgage. $50 is a small price to pay vs. PMI which if I'm not mistaken is only deductable for some for the first year.

This program is not for low to moderate income areas exclusively. This is FALSE information. Here is a quote from there website:

"NACA does not believe in poor areas for poor people or exclusively wealthy areas, so there are no income limits for getting a NACA mortgage, and you can purchase a one- to four-family home, condo or a coop. The purpose of establishing upper limits on the purchase price is to maintain NACA’s focus on stabilizing low- to moderate-income communities and assisting low- to moderate-income people. The Maximum Purchase Price cannot be exceeded under any circumstances, and it is not acceptable for a buyer or seller to provide funds in addition to the mortgage to compensate for a purchase price that exceeds the Maximum."

IMHO if you can afford outside the upper limit then you dont need NACA or any program. There are also PLENTY of people who will be buying inside NACA's upper limit who dont need NACA to get a loan but are attracted by the excellent terms.
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Old 06-12-2008, 11:26 AM
 
Location: Charlotte, North Carolina
5,137 posts, read 11,756,958 times
Reputation: 975
huh???

I dont know many ppl who have a loan amount over 150k that go for NACA.

FHA is about the same in monthly payments for PMI as NACA


Quote:
Originally Posted by dangelo View Post
One NACA con is that they are sloooooow to process things, but they are upfront with that fact. You can minimize the effects of this by following directions and following up religiously. If your house 'is in order' a NACA loan can process just as fast at a conventional loan. I've watched this happen with someone who was serious about getting a NACA loan and could have easily qualified for a higher rate, higher fees, PMI conventional loan.

The volunteer requirement to me is the only obligation worth mentioning. Some may not have the time.

The $50 a month membership fee gets YOU 'mortgage insurance', unlike PMI which protects the bank. Call me crazy but wouldn't it make more sense for insurance to "help the borrower who in turns gives it to the bank to make the payment" instead of skippng the borrower.

In response to what Renriq:
After your 2nd meeting, the first with the counselor, you can be pre-approved. meeting. If you do not qualify for preapproval that day they tell you all you need to do.

Monthy payment which isn't tax deductable? Are you talking about the $50 fee? You cant be talking about the mortgage. $50 is a small price to pay vs. PMI which if I'm not mistaken is only deductable for some for the first year.

This program is not for low to moderate income areas exclusively. This is FALSE information. Here is a quote from there website:

"NACA does not believe in poor areas for poor people or exclusively wealthy areas, so there are no income limits for getting a NACA mortgage, and you can purchase a one- to four-family home, condo or a coop. The purpose of establishing upper limits on the purchase price is to maintain NACA’s focus on stabilizing low- to moderate-income communities and assisting low- to moderate-income people. The Maximum Purchase Price cannot be exceeded under any circumstances, and it is not acceptable for a buyer or seller to provide funds in addition to the mortgage to compensate for a purchase price that exceeds the Maximum."
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Old 06-12-2008, 11:53 AM
 
Location: Between a Rock and a Hard Place
110 posts, read 334,636 times
Reputation: 67
Quote:
Originally Posted by renriq02 View Post
huh???

I dont know many ppl who have a loan amount over 150k that go for NACA.

FHA is about the same in monthly payments for PMI as NACA
In the Charlotte area NACA's limit is 200k for a SFH. Looking at Realtor.com 200k in Charlotte doesn't look to shabby.

NACA will beat FHA rates all day.

Everything is not for everyone. It's an excellent program.
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Old 06-12-2008, 12:24 PM
 
3,033 posts, read 6,143,965 times
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I had no idea this program existed! I've been researching FHA because we hope to get back into the home ownership circle someday--soon, I hope!--and our credit is less than stellar since we had such a tough period a few years' back.
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Old 06-12-2008, 12:29 PM
 
Location: Charlotte, North Carolina
5,137 posts, read 11,756,958 times
Reputation: 975
Please make sure to read the post before stating someone is giving false information. Your information clearly verifies what I wrote about the program being setup up for low-to-moderate income housing.

I also did mention it's a great program, but it's not for everyone.

Quote:
Originally Posted by dangelo View Post
In the Charlotte area NACA's limit is 200k for a SFH. Looking at Realtor.com 200k in Charlotte doesn't look to shabby.

NACA will beat FHA rates all day.

Everything is not for everyone. It's an excellent program.
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Old 06-12-2008, 01:30 PM
 
Location: Between a Rock and a Hard Place
110 posts, read 334,636 times
Reputation: 67
Quote:
Originally Posted by renriq02 View Post
it's a great program but you're not guaranteed a mortgage.
You will also be paying a monthly payment which isn't tax deductible.

These programs are setup for low-to-moderate income areas, and may take 3-5months minimum to provide financing
By the numbers

1. It's a great program but you're not guranteed a mortgage.

(Thats with any mortgage.. how is this a negative exclusive to the NACA program).

2. You will also be paying a monthly payment which isn't tax deductable

(If you take that sentence literally it's FALSE. I think you meant to say the $50 membership fee is not tax deductable. This fee is comparable to PMI and if you do an apples to apples comparision of this fee to PMI there is no contest. Naca's fee is cheaper and protects the homeowner and the bank not just the bank.)

3. These program are setup for low to moderate income areas and may take 3 to 5 months minimum to provide financing.

(FALSE. The speed on financing largely depends on the applicants ability to follow through). NACA holds your hand more than a conventional loan application while still being rather forgiving for past mistakes. These loans are funded by 2 of the largest banks in the country (CITIBANK and BOA) and have better than industry default rates. Once NACA says your approved you WILL be approved for financing by the bank.)
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Old 06-12-2008, 01:39 PM
 
Location: Charlotte, North Carolina
5,137 posts, read 11,756,958 times
Reputation: 975
1. I have had many borrowers that were approved with NACA, and never received a mortgage. After waiting 5-6months, they decided to go with me or someone else.

2. The monthly payment is the fee that you will pay to participate in their program. With a mortgage amount of 150k, the monthly MIP payments are 62.5 which is tax deductible. You will also be dedicating your lovely hours to help 'the cause'. I'm not sure how it protects the 'homeowner' as all insurances are to protect the person who is holding the collateral. PMI even protects the homeowner as will pay the difference owed btwn the amount sold and monies owed.

3. NACA’s focus on stabilizing low- to moderate-income communities and assisting low- to moderate-income people.
I have seen borrowers who were well qualified wait 5-6months to never receiving a loan. The counselor mentioned that they focus on certain areas FIRST before looking to other areas for homeowners. A borrower needs to see what areas NACA designates as low-to-moderate-income communities. The information above was taken from your own post, and only verifies what has been stated.

Quote:
Originally Posted by dangelo View Post
By the numbers

1. It's a great program but you're not guranteed a mortgage.

(Thats with any mortgage.. how is this a negative exclusive to the NACA program).

2. You will also be paying a monthly payment which isn't tax deductable

(If you take that sentence literally it's FALSE. I think you meant to say the $50 membership fee is not tax deductable. This fee is comparable to PMI and if you do an apples to apples comparision of this fee to PMI there is no contest. Naca's fee is cheaper and protects the homeowner and the bank not just the bank.)

3. These program are setup for low to moderate income areas and may take 3 to 5 months minimum to provide financing.

(FALSE. The speed on financing largely depends on the applicants ability to follow through). NACA holds your hand more than a conventional loan application while still being rather forgiving for past mistakes. These loans are funded by 2 of the largest banks in the country (CITIBANK and BOA) and have better than industry default rates. Once NACA says your approved you WILL be approved for financing by the bank.)
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Old 06-12-2008, 01:49 PM
 
Location: Between a Rock and a Hard Place
110 posts, read 334,636 times
Reputation: 67
Quote:
Originally Posted by NChomesomeday View Post
I had no idea this program existed! I've been researching FHA because we hope to get back into the home ownership circle someday--soon, I hope!--and our credit is less than stellar since we had such a tough period a few years' back.
NACA generally wants to see the last two years of good credit or paid. I urge you to go to the next meetng in your area ASAP. It's the first step and it will answer most questions. It's free. Heck they usually pick places where parking is free too.

Their website has a wealth of information.
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