NACA Program in Massachusetts.

12 Replies

Wasn't sure which form category to post this on. I'm from Massachusetts and I went to my first NACA workshop on November 4th 2017. My first meeting with a counselor is December 14th 2017 once I called them a week later. I am looking into purchasing my first multi-family unit through this NACA loan mainly because of its little to no money down reputation. If anyone has tips or experiences they'd like to share relating to this let me know! I will update on my progress and what I find out during my first meeting. :)

@Daniel Ortiz They have a website which can be found here.

@Jennifer Ouch It definitely seems like a great program from what I remember about it (looked into it a while back) although I never fully dove into it. Definitely keep us updated on your experience with it. I could see it being a potential financing option for myself down the line!

@Jennifer Ouch  

I just checked out the NACA page and their eligibility rule #2 is "Member must occupancy the home as long as they have a mortgage obtained through NACA."

If you know you are going to live in the house for the next 30 years, it shouldn't be an issue, but who does that realistically?  That would be a deal breaker for me.  You might want to explore some other options through Mass Housing  masshousing.com or MyMassMortgage www.mymassmortgage.org

I did a similar program about 5 years ago. It was a Mass Housing program that went through TD Bank and their "Right Step Program" for which i had to meet certain criteria (generous income limitations, over 650 credit score, first time homebuyer course, first time landlord course, and probably a couple others). What it got me was a 30 year fixed rate loan at 3.125%, NO PMI, and only 5% down payment.

@Jennifer Ouch try your best to buy down the interest that is one of the benefits of this program.

@Matt Leonard although I am very late in replying lol, that was also something I was really concerned about because I definitely don't want to live in my first home forever since it will be a multi family unit. I was thinking of an "exit strategy" if I go through naca because I want to eventually own more property. I could potentially refinance with another loan, but I don't know much about the process so I'm still figuring out what's my best route in my first investment! I will check out what you suggested :) 

@Joel F. sorry for the late reply. i did read about this which sounds like a great benefit! 

@Daniel Ortiz Hi sorry for the late reply! I don't know if you did some research on it yet, but what interested me about them was that you don't need a down payment. as long as you can prove to them you can afford a mortgage that's their main concern. you need to comply with many rules such as not owning any property (nor anyone living in the home), living in the home for the entire mortgage, and volunteering a couple times within the organization. theres also a membership fee of $25 a year. 

I had two appointments so far and needed to bring a ton of documents. If you are on top of all the docs needed like paystubs, w2s, etc, the process can be much quicker. once you have the documents needed it gets sent to the bank for approval. its much more complex than this, but these are some of the basics..

i'm on maternity leave so that's holding me back at the moment bc it's unpaid. i have to wait until I get back to work and provide a months worth of pay. my counselor said possibly by April my file will be complete to send to the bank (since i go back to work in march.) . After someone gets approved, the house search begins. if I wasn't on maternity leave my file would have been completed sooner because i had everything, i just need to take a landlord course and provide the certificate. 

i'm following through with this program for now, because i think it could work. my goal is to own more property so i wasn't sure if this was the right choice bc of the requirement to live there through the entire mortgage. i could refinance when i want to move, but i don't know much about that process and if it would work out smoothly. as i keep pursuing them i'm sure i'll get more answers and eventually decide what to do! in the meantime i'm still researching other options. 

@Patrick Wheeler Hi! sorry for the late reply. had a baby in the meantime lol. i wrote in the thread my experience so far. i'm leaning towards the naca loan for my first multi family property, i just don't know if it's the greatest idea because of its restrictions. but, for no downpayments or closing costs, it would help me get my feet wet much quicker. do you have any other financing options you have pursued or researched? thanks :). 

Originally posted by @Jennifer Ouch :

@Daniel Ortiz Hi sorry for the late reply! I don't know if you did some research on it yet, but what interested me about them was that you don't need a down payment. as long as you can prove to them you can afford a mortgage that's their main concern. you need to comply with many rules such as not owning any property (nor anyone living in the home), living in the home for the entire mortgage, and volunteering a couple times within the organization. theres also a membership fee of $25 a year. 

I had two appointments so far and needed to bring a ton of documents. If you are on top of all the docs needed like paystubs, w2s, etc, the process can be much quicker. once you have the documents needed it gets sent to the bank for approval. its much more complex than this, but these are some of the basics..

i'm on maternity leave so that's holding me back at the moment bc it's unpaid. i have to wait until I get back to work and provide a months worth of pay. my counselor said possibly by April my file will be complete to send to the bank (since i go back to work in march.) . After someone gets approved, the house search begins. if I wasn't on maternity leave my file would have been completed sooner because i had everything, i just need to take a landlord course and provide the certificate. 

i'm following through with this program for now, because i think it could work. my goal is to own more property so i wasn't sure if this was the right choice bc of the requirement to live there through the entire mortgage. i could refinance when i want to move, but i don't know much about that process and if it would work out smoothly. as i keep pursuing them i'm sure i'll get more answers and eventually decide what to do! in the meantime i'm still researching other options. 

Hey Jennifer,

No problem, congrats on the baby! Appreciate the in depth info regarding the financing vehicle. I agree - I think I’d be a little worried about not being able to refinance. But I’m sure this fits well with certain situations! Thanks for the insight.

Dan

845-558-6077

Hey @Jennifer Ouch - I saw your question about the 4-plex. Yes, I plan on continuing to live here for the long term. I’m tired of moving. Any future property I buy (down payment comes from excess income on the quad) will be managed remotely by me (looking in same neighborhood) or I’m training my adult son to be a superintendent so I can have him live onsite and help me with the day-to-day management. Feel free to message me off-line. 😊

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