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I have a question after looking at their site. Today's rate is 6.0%. Is your rate with them locked at when you start or is it the rate when you're approved and ready to go to close?
I ask because if it takes 5-6 months and you get the rate then, then it might not be any better rate than a Conv loan now.
You "lock" with a contract, just like with any other loan.
The rate is based on the 'market rate' so if market goes up then their rate goes up as well. In Febuary NACA's rate was as low as 4.9%
It does not take 5-6 months to get through NACA. That's just false. I will say that no one is going to do the process in under 60 days though because of the workload of this non-profit.
Quote:
Originally Posted by phantoms
I have a question after looking at their site. Today's rate is 6.0%. Is your rate with them locked at when you start or is it the rate when you're approved and ready to go to close?
I ask because if it takes 5-6 months and you get the rate then, then it might not be any better rate than a Conv loan now.
I had a brief experience with NACA about two years ago. Since there isn't an office in Orlando, I travelled to Tampa both for the one-day seminar (on a Saturday) and for the counseling session (or whatever it's called when they go over all your paperwork; hubby and I had to both take the day off work because there are only week day appointments.
The reasons we decided not to go with NACA were: our local office/counselor could not clearly explain what the volunteer component entailed (i.e., whether we'd have to go out to Tampa to do it, if there was anything we could do in Orlando, etc.) and the limit they gave for a mortgage wasn't reasonable for where we wanted to live (At the time, the cap was $216k; this was at the height of the real estate bubble, when it was basically impossible to get even a 1-bedroom condo for that much. I don't know what the limit is now).
Just go in with your eyes open, and a determination to get answers, and you should be fine. I think it's a good program for people who need step-by-step help on their credit scores and/or how to buy a house.
I had a brief experience with NACA about two years ago. Since there isn't an office in Orlando, I travelled to Tampa both for the one-day seminar (on a Saturday) and for the counseling session (or whatever it's called when they go over all your paperwork; hubby and I had to both take the day off work because there are only week day appointments.
The reasons we decided not to go with NACA were: our local office/counselor could not clearly explain what the volunteer component entailed (i.e., whether we'd have to go out to Tampa to do it, if there was anything we could do in Orlando, etc.) and the limit they gave for a mortgage wasn't reasonable for where we wanted to live (At the time, the cap was $216k; this was at the height of the real estate bubble, when it was basically impossible to get even a 1-bedroom condo for that much. I don't know what the limit is now).
Just go in with your eyes open, and a determination to get answers, and you should be fine. I think it's a good program for people who need step-by-step help on their credit scores and/or how to buy a house.
I have a question after looking at their site. Today's rate is 6.0%. Is your rate with them locked at when you start or is it the rate when you're approved and ready to go to close?
I ask because if it takes 5-6 months and you get the rate then, then it might not be any better rate than a Conv loan now.
From their literature, the NACA rate is always below conv rates. Usually around 1%.
If anyone is thinking of using NACA as their mortgage lender, there are some very important things one must know before going into the process. The most important is that it will take time - a lot of time. Be prepared to take anywhere from 6 to 9 months, if not longer. Further more, their attitude towards their borrowers or "members" in NACA's vernacular is down right awful. The attitude is "we're the only game in town, the members have to do what we tell them. Where are they going to get 100% financing in this market"? They don't think it much to add 3 to 6 months to process as they see fit. As NACA fancies themselves as consumer advocates, their mission is to "counsel" their members towards home ownership. "Counseling" is a term to be used loosely, having heard stories where members where made to feel badly over minor mistakes to the point of crying. Also, NACA has a dirty little secret, they're biased against people that have excellent credit, savings and stable employment. The mortgage counselors are paid less commission for members with higher credit scores. Plus the underwriting department will make no exceptions for people who make more money ($107,000 annually for one couple) forcing those people instead to buy down their interest rate to qualify for the maximum loan amount. This bias translates into discrimination against white and latino young professionals or skilled laborers. Then once the member is approved they are qualified and can bring a realtor to help them shop for property or NACA will refer an agent from their approved agents list. Either way, NACA refuses to communicate with the agents representing their members which is strange given the agents approved had to go through NACA training. One major warning - DON'T SHOP FOR PROPERTY UNTIL THE QUALIFYING LETTER HAS BEEN ISSUED. Even then, the mortgage counselors are so over worked some of them lie and tell their members that they're approved or even false qualifying letters have been issued when nothing has been done to advance the member's case since the initial intake meeting. This one fact has accounted for members losing properties and thousand of dollars in good faith deposits. Then once the offer is accepted, the real fun begins with NACA requiring a home inspection which on the surfage seems ok but all findings have to be repaired prior to closing and are handled by the HAND department. It is the HAND department that holds up 95% of the closings. The real injustice is how NACA treats their employees, when anyone questions how things are done at NACA, the response is "you don't like it, work somewhere else" That's their response to trainees just learning their job. Employees are expected to work from 8:00 in the morning until 9:00 or 10:00 at night, as well as Saturdays for workshops. How this all translates for the consumer is that the people who work for NACA, the heart and soul of the organization, are over worked and under appreciated meaning customer service suffers as those doing the work are only human and something has to give. Not only that, with a recent change in leadership, people in high places with the organization have little or no experience in mortgage banking but are great "yes men" in their dealings with the CEO, Bruce Marks. The attitude of the CEO as well as those individuals is anyone with mortgage banking experience are a part of the problem. That all those people were "predatory" lenders in the past. All these employees are being purged from the organization being fired in many cases for no reason at all. The turn over is very high as NACA does not respect their work force and in this market, many people will do anything, taking the disrespect just to have a paycheck. Again, this translates into poor customer service as NACA requires "counseling" for a minimum of 3 months prior to being qualified, some members have had as many as 4 counselors through the process, with each new counselor starting the process all over again. In the end one may be happy to have gone through NACA to obtain their mortgage. However, be warned. the process is time consuming and at times maddening, it just depends on what one is willing to accept from those "advocating" for their best interest.
If anyone is thinking of using NACA as their mortgage lender, there are some very important things one must know before going into the process. The most important is that it will take time - a lot of time. Be prepared to take anywhere from 6 to 9 months, if not longer. Further more, their attitude towards their borrowers or "members" in NACA's vernacular is down right awful. The attitude is "we're the only game in town, the members have to do what we tell them. Where are they going to get 100% financing in this market"? They don't think it much to add 3 to 6 months to process as they see fit. As NACA fancies themselves as consumer advocates, their mission is to "counsel" their members towards home ownership. "Counseling" is a term to be used loosely, having heard stories where members where made to feel badly over minor mistakes to the point of crying. Also, NACA has a dirty little secret, they're biased against people that have excellent credit, savings and stable employment. The mortgage counselors are paid less commission for members with higher credit scores. Plus the underwriting department will make no exceptions for people who make more money ($107,000 annually for one couple) forcing those people instead to buy down their interest rate to qualify for the maximum loan amount. This bias translates into discrimination against white and latino young professionals or skilled laborers. Then once the member is approved they are qualified and can bring a realtor to help them shop for property or NACA will refer an agent from their approved agents list. Either way, NACA refuses to communicate with the agents representing their members which is strange given the agents approved had to go through NACA training. One major warning - DON'T SHOP FOR PROPERTY UNTIL THE QUALIFYING LETTER HAS BEEN ISSUED. Even then, the mortgage counselors are so over worked some of them lie and tell their members that they're approved or even false qualifying letters have been issued when nothing has been done to advance the member's case since the initial intake meeting. This one fact has accounted for members losing properties and thousand of dollars in good faith deposits. Then once the offer is accepted, the real fun begins with NACA requiring a home inspection which on the surfage seems ok but all findings have to be repaired prior to closing and are handled by the HAND department. It is the HAND department that holds up 95% of the closings. The real injustice is how NACA treats their employees, when anyone questions how things are done at NACA, the response is "you don't like it, work somewhere else" That's their response to trainees just learning their job. Employees are expected to work from 8:00 in the morning until 9:00 or 10:00 at night, as well as Saturdays for workshops. How this all translates for the consumer is that the people who work for NACA, the heart and soul of the organization, are over worked and under appreciated meaning customer service suffers as those doing the work are only human and something has to give. Not only that, with a recent change in leadership, people in high places with the organization have little or no experience in mortgage banking but are great "yes men" in their dealings with the CEO, Bruce Marks. The attitude of the CEO as well as those individuals is anyone with mortgage banking experience are a part of the problem. That all those people were "predatory" lenders in the past. All these employees are being purged from the organization being fired in many cases for no reason at all. The turn over is very high as NACA does not respect their work force and in this market, many people will do anything, taking the disrespect just to have a paycheck. Again, this translates into poor customer service as NACA requires "counseling" for a minimum of 3 months prior to being qualified, some members have had as many as 4 counselors through the process, with each new counselor starting the process all over again. In the end one may be happy to have gone through NACA to obtain their mortgage. However, be warned. the process is time consuming and at times maddening, it just depends on what one is willing to accept from those "advocating" for their best interest.
I shouldn't laugh, but in your story, if you substituted "ACORN" for "NACA" you would have described my experience with ACORN. Now, ACORN doesn't have all the hoops NACA has, such as public service, but our local ACRORN office did have counseling and they tried to persuade the clients away to their "preferred" people. It was this shady practice that tarnished my opinion on this organization.
Anyway, the ACORN loans have undergone a major change, now requiring down payments, qualification has been tightened down and credit standards are now in place. By the time we were done explaining the changes, most buyers opted for FHA without all the hassle.
I found your comments about the counselors getting paid more for lower credit scores very interesting, but it does make sense if they are diverting potential public assistance (section 8) for these buyers. NACA, ACORN and the Federal Home Loan grants are all a result of CRA, or Community Reinvestment. Also, called Earmarks or Pork. I don't know where NACA stacks up on the foreclosures, but I have heard ACORN's rate is quite high........I'll see if I can retrieve some stats and post them.
I am an employee and the 50.00 is actually place into the Neighborhood stabalization program. It is also made available to you if you fall short and find yourself unable to make your mortgage payments. So although it is not tax deductible....where else can you go and have someone step in to help you in a true hardship.
If anyone is thinking of using NACA as their mortgage lender, there are some very important things one must know before going into the process. The most important is that it will take time - a lot of time. Be prepared to take anywhere from 6 to 9 months, if not longer. Further more, their attitude towards their borrowers or "members" in NACA's vernacular is down right awful. The attitude is "we're the only game in town, the members have to do what we tell them. Where are they going to get 100% financing in this market"? They don't think it much to add 3 to 6 months to process as they see fit. As NACA fancies themselves as consumer advocates, their mission is to "counsel" their members towards home ownership. "Counseling" is a term to be used loosely, having heard stories where members where made to feel badly over minor mistakes to the point of crying. Also, NACA has a dirty little secret, they're biased against people that have excellent credit, savings and stable employment. The mortgage counselors are paid less commission for members with higher credit scores. Plus the underwriting department will make no exceptions for people who make more money ($107,000 annually for one couple) forcing those people instead to buy down their interest rate to qualify for the maximum loan amount. This bias translates into discrimination against white and latino young professionals or skilled laborers. Then once the member is approved they are qualified and can bring a realtor to help them shop for property or NACA will refer an agent from their approved agents list. Either way, NACA refuses to communicate with the agents representing their members which is strange given the agents approved had to go through NACA training. One major warning - DON'T SHOP FOR PROPERTY UNTIL THE QUALIFYING LETTER HAS BEEN ISSUED. Even then, the mortgage counselors are so over worked some of them lie and tell their members that they're approved or even false qualifying letters have been issued when nothing has been done to advance the member's case since the initial intake meeting. This one fact has accounted for members losing properties and thousand of dollars in good faith deposits. Then once the offer is accepted, the real fun begins with NACA requiring a home inspection which on the surfage seems ok but all findings have to be repaired prior to closing and are handled by the HAND department. It is the HAND department that holds up 95% of the closings. The real injustice is how NACA treats their employees, when anyone questions how things are done at NACA, the response is "you don't like it, work somewhere else" That's their response to trainees just learning their job. Employees are expected to work from 8:00 in the morning until 9:00 or 10:00 at night, as well as Saturdays for workshops. How this all translates for the consumer is that the people who work for NACA, the heart and soul of the organization, are over worked and under appreciated meaning customer service suffers as those doing the work are only human and something has to give. Not only that, with a recent change in leadership, people in high places with the organization have little or no experience in mortgage banking but are great "yes men" in their dealings with the CEO, Bruce Marks. The attitude of the CEO as well as those individuals is anyone with mortgage banking experience are a part of the problem. That all those people were "predatory" lenders in the past. All these employees are being purged from the organization being fired in many cases for no reason at all. The turn over is very high as NACA does not respect their work force and in this market, many people will do anything, taking the disrespect just to have a paycheck. Again, this translates into poor customer service as NACA requires "counseling" for a minimum of 3 months prior to being qualified, some members have had as many as 4 counselors through the process, with each new counselor starting the process all over again. In the end one may be happy to have gone through NACA to obtain their mortgage. However, be warned. the process is time consuming and at times maddening, it just depends on what one is willing to accept from those "advocating" for their best interest.
Most of this post is obviously B.S. Making people cry over mistakes? Come on. Biased against people with good credit, Whites and Latino's. Thats a load of crap.
First off the NACA's "program" as some would call it will take a long time because they are prepping the "member's" credit and financial habits to be credit worthy for a mortgage. If you are already credit worthy and they do not work fast enough for you then go to your local bank, credit union or mortgage company. Take that from someone who did just that. I'm not sour on them everything is not for everyone.
I shouldn't laugh, but in your story, if you substituted "ACORN" for "NACA" you would have described my experience with ACORN. Now, ACORN doesn't have all the hoops NACA has, such as public service, but our local ACRORN office did have counseling and they tried to persuade the clients away to their "preferred" people. It was this shady practice that tarnished my opinion on this organization.
Anyway, the ACORN loans have undergone a major change, now requiring down payments, qualification has been tightened down and credit standards are now in place. By the time we were done explaining the changes, most buyers opted for FHA without all the hassle.
I found your comments about the counselors getting paid more for lower credit scores very interesting, but it does make sense if they are diverting potential public assistance (section 8) for these buyers. NACA, ACORN and the Federal Home Loan grants are all a result of CRA, or Community Reinvestment. Also, called Earmarks or Pork. I don't know where NACA stacks up on the foreclosures, but I have heard ACORN's rate is quite high........I'll see if I can retrieve some stats and post them.
First off Acorn and NACA are Apples and Oranges. NACA is an organization with ONE mortgage program for purchases, it was not funded by Earmarks or Pork, and their forclosure rate is lower than industry. Call any office and ask the local management, they pride themselves as being apart of the solution and not the problem.
The problem lies with people who generalize.
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Good answers
