Is buying a house through NACA investor-friendly?

Question

I want to own and hold rental properties so I can be eventually financially-free. I'm going to a NACA workshop in December because apparently you can buy a house with little to no money down; apparently they will give you a loan. But I heard they have liens on their houses, like you dont really own the house. Could I buy a 2 4 unit house with NACA to start down this path? Can anyone give insight on this organization as far as investing is concerned?

Tim Trumble · Answer

The NACA program is exclusively for owner-occupants, but does allow purchase of up to four-unit proerties as long as the owner lives in one of the units. NACA is exclusively for owner-occupants and not for the purchase of investment properties.  To enforce the owner occupancy requirement, NACA places a $25,000 lien on the property for the duration of the loan.

The  lien allows NACA to enforce its owner occupancy requirement.  If you violate this requirement by not living in the home while you still have a NACA Mortgage, NACA will have the right to demand payment of $25,000 and foreclose on your property. If at some point you decide to sell or refinance the home, you will need to contact NACA to obtain a release of the lien. If all the conditions have been complied with, NACA will provide with a lien release without any charge to you. Also the occupancy requirement with NACA will no longer apply.

Chris Mason · Answer

Hi @Raeshelle Cooke,

My experience with NACA is when it does not work out, so I can't speak to when it does work out.

Here is what I've seen:

• Homebuyer has spent six months at workshops and counselings and meetings and conferences and bla bla bla.
• Homebuyer is bewildered at being expected to host workshops, and promote the NACA brand to friends/family/coworkers.
• It's been eleven months, homebuyer is still not a homeowner.
• Homebuyer is sick of it, gives up on NACA.
• Homebuyer somehow finds my name (or the name of any other traditional lender that's focused on getting you in a home, and not on promoting workshops and wasting time).
• Homebuyer is homeowner a month or two after they gave up on NACA and called a traditional lender.
• Why did homebuyer waste eleven months of their life with NACA? That's the big question.

That being said, presumably a bunch of workshops isn't enough to pay the bills, and they are still in business (allegedly as a non-profit? Riddle me that one), so there must be some people that successfully close a mortgage with them. I don't know how they separate out the people they actually want to give mortgages to, from those they just want to be workshop hosting people that never get a house for themselves, from those whose phone calls they just stop returning. It's bizarre.

If they put you in the category of people they actually want to give mortgages to, maybe it'll work out. I don't know. But if they put you in the category of people they want to host workshops and start asking you to "volunteer" for that stuff, I'd suggest moving on.

Jay Hinrichs · Answer

@Chris Mason  Easy think deep south 2009  you have just foreclosed on 200 plus homes you did not want and you now owned them.. ( this was ME in 2009)  offer comes in over full price.. but I have to buy down rate by 15k.. sure no problem. I get cashed out...

but it was ridiculous the ladies at Naca knew how tough the market was so it cost us lunch at applebees  each time.. full rack of ribs  LOL...

Alex Smith · Answer

How would they even find out that you're not in the property, to levy the lean of $25,000?    Do they stay up your a** forever?  LoL!

Jay Hinrichs · Answer

Account Closed  by all means attend and let me know what you think .. some how I will bet your a fish out of water.. LOL

Jay Hinrichs · Answer

I have sold property in the Naca program @Chris Mason  as Chris mentioned its very arduous .. think of ACORN on steroids...

its does happen I sold two of my OREO to Naca buyers.. but it was not without taking the Naca folks to lunch numerous times and the ladies ordered the most expensive thing on the menu knowing I would pay  LOL.

its kind of cult ish really.. and defiantly not investor .

but from what I saw it limited you in income and it limited you in purchase price..

but for the two I sold and they hammer the seller to buy down the rate which I did.. interest rate was under two on both I did.. because these borrowers had crappy past credit the monthly insurance payment was greater than the mortgage payment  LOL..

it works but enter at your own risk

Account Closed · Answer

maybe but the hook is baited with a 2.8% mortgage and no closing costs

Account Closed · Answer

Hey guys if you want to check it out there is a Naca meeting next month in Vegas.

Noble Title.12/17/2016 -- 2:00 PM - 6:00 PM6585 High StreetLas Vegas, NV 89113

Got to love BP I learn some new bit of info everyday

Mark Beekman · Answer

@Tim Trumble

It looks like your last post was deleted before I was able to read it. Feel free to post again, or message me.

Chris Mason · Answer

How the hell does a lender pitch a seller on buying down the buyer's interest rate? What was the pitch that worked on you? Give me a pitch that works and I'll do it on each and every deal - LOL.

Is buying a house through NACA investor-friendly?

Most Popular Reply