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Hi all,
I'm in the process of closing on a house, through our mortgage broker we got a 3.75% interest rate, closing costs paid by the seller, we used a conventional loan for the lower monthly payment so we had to put down 5%. We have a closing date of July 27th.
I was talking to a coworker today and she told me to look into NACA (Neighborhood Assistance Corporation of America). By using them you have no downpayment, no fees, plus an interest rate of 3.375%. My mother always said that if it sounds too good to be true then it probably is. So what am I missing? Is there a catch here? The house we are purchasing is under $175K so it falls within the price range that they will finance. I would like to hear all thoughts on whether this would have been a better route to take rather than a traditional broker.
IMO, run with what you have in process.
Great rate.
Low downpayment.
No delays due to 3rd party assistance.
Nothing against NACA, but they are there for people who need financial guidance and counseling and cannot finance conventionally. If you can do without, why not?
The catch is you have to take their classes and then spend time volunteering for the organization. You can't get something for nothing.
They founder is famous for storming board meetings at major banks and holding protests and sit-ins. The banks hand money over to them for lending. https://www.naca.com/nacaweb/economi....aspx?language= Think ACORN - but for Real Estate.
I'd only use them as a last resort, they are run more like a non-profit than a bank and it shows. The underwriting and loan application process takes way longer than other places, and you need to do a lot of legwork and reaching out to them to make sure all your paperworks gets completed properly and on time.
Hi all,
I'm in the process of closing on a house, through our mortgage broker we got a 3.75% interest rate, closing costs paid by the seller, we used a conventional loan for the lower monthly payment so we hadto put down 5%. We have a closing date of July 27th.
I must be terribly out of touch. I thought having a conventional loan meant a 20% down payment. Didn't the lenders learn their lesson from the bursting of the real estate bubble a few years ago?
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