Real Estate Agent Familiar with NACA Process

Buying & Selling Real Estate
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Real Estate Agent Familiar with NACA Process

Karen Kingston
Freeport, NY · Member since 2015 · 4 posts · 0 votes

Hello everyone,

I'm a real estate agent from New York. I work equally with buyers and sellers. This past month a past rental customer called me and said she was looking to buy a house. She proceeded to tell me that she's using NACA for the purchase. Great right? Wrong.....I was just able to get scheduled for a workshop to introduce me to the program which is next week but in the meantime, they viewed a 2 family home and want to submit an offer!!! None of the agents that I know are familiar with the program. My broker told me to try to find her a different program but they want to use NACA. So here goes....... I really just need some guidance , advice etc about the process. We got a home insurance quote already but is there anything else I or they need to do? How about agency? Do I need to act as a Buyers Agent? This is going to be interesting : ) Any help is appreciated.

Btw....she has a point of contact but it takes over a week to get a response. I would love for this to work out for them but in the back of my mind it seems more like a trial run to prepare to successfully close a deal using the NACA program somewhere down the line.

Thanks

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Carley M.
Investor · Buffalo, NY · Member since 2016 · 100 posts · 71 votes
9y
Chris Mason you might benefit from actually understanding how NACA works. The people who give up and leave the program do so because they get frustrated or simply aren't organized enough to act as their own Processor. A lot of the problems I've seen are simply the result of lack of proper staff training and failure to communicate realistic expectations to the clients. There is only one workshop where you learn about the program and one other workshop to teach these first time homebuyers about realtors and looking for houses. The "months" that these people spend in the cycle are used to write letters explaining their credit issues (this happened, I got behind, won't happen again) and working through any items that an underwriter might or is questioning, and making sure the borrower is sustaining on a budget that allows savings. This is a financial overhaul for some people. It's completely foreign to everyone going through the program and there aren't clear road maps to follow since every single purchase has different issues. This isn't a scam or a trap, it's an amazing program where the staff is just not managed appropriately. I successfully completed NACA and am helping 4 of my friends go through the process now.
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  • Ana GarridoPro Member
    Central Florida · Member since 2016 · 40 posts · 19 votes
    8y
    Hi Tim Trumble ! Is good to find you here. I hope you can help me to clarify a doubt. My husband and I are going through the NACA process, but, before we buy with NACA we want to raise extra money with our savings. So, as he works with a general contractor as handyman, we are thinking to buy a distressed house, rehab, and sell it under an LLC and in partnership with his boss. My question is: if we do this, can we still qualify for NACA?. Thanks for you time.
    0Reply
  • Tim Trumble
    Charlotte, NC · Member since 2013 · 48 posts · 26 votes
    8y

    Hello @Ana Garrido,

    Based on what you have written, you will not be able to use the NACA program. NACA first and foremost is an advocacy organization, committed to neighborhood stabilization through owner occupancy. We require that not only do you live in the home purchased through the NACA program, but that you remain there for a minimum of three years before selling. Furthermore, the LLC and partnership you describe would also be prohibited since it is also contrary to our goals.

    Tim Trumble

    Online Operations, NACA

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  • Ana GarridoPro Member
    Central Florida · Member since 2016 · 40 posts · 19 votes
    8y

    Hi @Tim Trumble ! 

    I am sorry, but it looks that my doubt was misunderstood. I stated " BEFORE we buy with NACA we want to raise extra money with our savings'. So, please, let me explain again. We would live in the house that we can get through NACA. However, as part of our commercial activities and under our company we would buy-rehab-sell houses. Therefore, the doubt is if the company will own those properties for short term and we would not live in there, yet OUR names are related to the company, may this unqualify us as the first home buyer?

    Many thanks in advance and excuses for insisting.

    Ana Garrido

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  • Kay Lee
    San Francisco, CA · Member since 2018 · 5 posts · 0 votes
    8y

    Great post! :)

    I know agents who've sent clients to use the NACA program.

    While the program advertises a 100% financing option with no closing costs, no fees, no credit score, there are still a set of guidelines they use.

    The main ones I see not ready to buy are the ones who NACA is not willing to lend with open judgements that can be liened against the property, and or open accounts witu collections that have lates within the last 12 months.

    I imagine there are some with situations like the one above, but I don't have any clue for the ones who are well qualified that can obtain conventional financing outside of NACA, and why they would experience delays and lack of transparency.

    The weekly meetings, the $50 monthly membership for 5-10 years, all in preparation for home ownership seems a little extreme.

    CFPB’s regulations such as TRID require disclosing within 3 days of an application.  The application for a home loan with all the docs in the front, I guess my question here is, do applicants receive these disclosures within that time frame?

    Just because they are a mortgage advocacy non profit program, doesn’t mean they’re excused from existing rules in place for transparency towards home loan applicants.  There’s no excuse why there isn’t an answer within 3 days showing how much you’re approved for, or what’s stopping you for getting approved, what your Official Loan Estimate is, etc.

    I do believe the program is awesome, but perhaps the intake and the process needs to be adjusted so that everyone who is part of the program can work together to get it done.

    0Reply
  • Kiara Moon
    Buffalo, NY · Member since 2017 · 4 posts · 0 votes
    8y

    Hello, I seen this post is not too old. I am a NACA client and I have a home under contract but I am having a hard time finding a contractor to do the repairs. Do you know of any and can provide contacts?

    Thank you,

    Kiara

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  • Johnna Lodge
    Investor · Mableton, GA · Member since 2013 · 78 posts · 43 votes
    8y

    I received a NACA offer on a listing I had...then the seller says he doesn't want to sell. This is an excellent program for a motivated owner occupied buyer who will do what is required and follow steps of the the program. Buyer has a conventional loan that they purchase with no down payment, no closing costs, low interest rate (can buy it down as well), lots of support and once purchased and they continue their volunteer work Naca will cover their mortgage for 3 months if it is a hardship.

    https://www.freeandclear.com/resources/mortgage-insights/naca-mortgage-program-pros-cons

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  • Johnna Lodge
    Investor · Mableton, GA · Member since 2013 · 78 posts · 43 votes
    8y

    @Kiara Moon NACA should have approved contractors for you to call on. If you have to go outside of NACA they have to be approved. I think that is 7 days to become an approved NACA GC.

    0Reply
  • Marvette Critney
    Real Estate Broker · Atlanta, GA 30303 · Member since 2018 · 1 post · 2 votes
    8y

    I know that this post is over a year old, but I also know that individuals read old posts on various subjects. I am affectionately known as the NACA Queen in Georgia, Atlanta Metro.. Contrary to what people think, NACA is an awesome program for realtors/real estate agents. I currently have 40k in pending transactions for the month of October, all NACA transactions. NACA is not just for folks with credit challenges, however, if you happen to have a buyer that does have blemishes, then NACA is perfect. NACA is 100% financing, no money down, closing costs are paid by the lender, and the money the seller contributes towards closing is used to buy down the rate. My buyer is currently buying a home in the east atlanta area at $349k... she is going to walk out the door with a rate under 3% fixed...no PMI.... If you have buyers that are already FHA ready and approved, I would switch them over to NACA in a heartbeat. I have had a buyer get approved in 7 days... Don't listen to the reviews.... I am not saying that their customer service can't be improved. As agents, make sure you attend a NACA workshop so that you see what your buyer sees. Make sure you attend the NACA webinar for agents as well...

    2Reply
  • Shadonna N.
    Developer · . · Member since 2014 · 520 posts · 162 votes
    7y

    @Kristopher Fraley I am a huge fan of NACA as well. I tell everyone looking for a home about it!

    0Reply
  • Obi I.
    Rental Property Investor · Baltimore, MD · Member since 2016 · 109 posts · 31 votes
    7y

    @Shadonna N. What are thoughts about using NACA in DC to buy a 4 unit

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  • Shadonna N.
    Developer · . · Member since 2014 · 520 posts · 162 votes
    7y

    @Obi I. NACA would be great for a 4 unit. In fact a lot of the NACA success stories involve 4 units. Not sure if this rule is still in place but you could not have been on a title on a property in the last three years. I also don't know if LLCs are counted.

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  • Obi I.
    Rental Property Investor · Baltimore, MD · Member since 2016 · 109 posts · 31 votes
    7y

    @Shadonna N. thanks for the follow up. Maybe @Tim Trumble can confirm whether the rule is still in place for 4-units.

    Missed you at our DC meetup on Monday. Hope you can make it next month

    0Reply
  • Shadonna N.
    Developer · . · Member since 2014 · 520 posts · 162 votes
    7y

    I totally missed it

    0Reply
  • Tim Trumble
    Charlotte, NC · Member since 2013 · 48 posts · 26 votes
    7y

    Hello Shadonna N.,

    To be specific, the rule states that you may not have an ownership interest in any other property and buy through NACA. Therefore, even properties in an LLC would disqualify you. Also, whether it is a single family or a four-family property is not a factor.

    Also, the three-year rule only prohibits you from using the NACA program more often than once every three years.

    I hope that clarifies things for you a bit.

    Tim Trumble

    Online Operations, NACA

    1Reply
  • Kristopher Fraley
    Member since 2019 · 3 posts · 1 vote
    7y
    Originally posted by @Tim Trumble:

    Hello Shadonna N.,

    To be specific, the rule states that you may not have an ownership interest in any other property and buy through NACA. Therefore, even properties in an LLC would disqualify you. Also, whether it is a single family or a four-family property is not a factor.

    Also, the three-year rule only prohibits you from using the NACA program more often than once every three years.

    I hope that clarifies things for you a bit.

    Tim Trumble

    Online Operations, NACA

    Of course Tim would clarify! He's everywhere on the internet! I'm catching up to you Tim! LOL. To all of those who end up reading a bit about my personal journey above through NACA, that would not have been the case without TIM!! I feel Tim personally went above & beyond to help me not only succeed through the program, but also achieve the 0.0625% rate. A debt I hope one day I may be able to repay! It took me 3 years to catch up with him down in NC to personally shake his hand. Tim, you are a heck of a person! From the bottom of my heart THANK YOU!!!

    0Reply
  • LaDonna B.
    Investor · Washington, DC · Member since 2009 · 18 posts · 0 votes
    7y

    @Tim Trumble Does NACA allow you to be the GC on your own project? If so, what is that process like?

    0Reply
  • Tim Trumble
    Charlotte, NC · Member since 2013 · 48 posts · 26 votes
    7y

    Thank you Kristopher Fraley! You know first hand that what I (and everyone else at NACA) do is a true passion for us.

    For a lot of us like me, it started with the Save the Dream tours and helping people keep their homes after the Great Recession hit. In a lot of ways being "everywhere on the internet" and helping people who what to buy a home through NACA is the most fun part of my job.

    I was certainly happy to be a part of your journey to home ownership, and I'm very happy that you have become part of our mission. You don't give yourself enough credit for the outstanding personal strides you made leading up to and since becoming a homeowner.

    I'm also grateful for the support and backup I get from you, Rashad and Pratik, especially since I'm back on the road a lot for the Achieve the Dream tours.

    0Reply
  • Lea Telesfort
    Member since 2019 · 3 posts · 0 votes
    7y

    @Carley M. @Tim Trumble , Hi super new, currently have good credit and reasonable income. A frozen gym membership was accidently unfrozen and I was sent to collections. Gym is willing to write a letter stating that it was an accident/ fraudulent charge etc. The question is, do I just pay the collections agency and send the letter to the credit bureau, or do I dispute it with the collections agency. Not sure which one will reflect better on my credit. This is really the only negative thing on there and I'd like to resolve it in the most attractive way (to lenders, NACA) as possible. Basically, which dings my credit score less? Dispute, or letter after the fact to the credit bureau?

    0Reply
  • Carley M.
    Investor · Buffalo, NY · Member since 2016 · 100 posts · 71 votes
    7y

    @Aaron L. Nope. Everyone goes through the same hoops. 6 weeks tops to process.

    0Reply
  • Lea Telesfort
    Member since 2019 · 3 posts · 0 votes
    7y

    Hi super new,  and looking through go through NACA. I currently have good credit and an average income. A frozen gym membership was accidentally unfrozen and I was sent to collections. Gym is willing to write a letter stating that it was an accident/ fraudulent charge etc. The question is, do I just pay the collections agency and send the letter to the credit bureau, or do I dispute it with the collections agency. Not sure which one will reflect better on my credit. This is really the only negative thing on there and I'd like to resolve it in the most attractive way (to lenders, NACA) as possible. Basically, which dings my credit score less? Dispute, or letter after the fact to the credit bureau?

    0Reply
  • Daniel Fisher
    Residential Real Estate Broker · Charlotte, NC · Member since 2011 · 1 post · 0 votes
    7y

    NACA is a non-profit lender I suggest that our Charlotte NC area clients consider. They offer 100% 15 and 30 yr fixed rate loans at very low (somewhat subsidized) interest rates, no points, no fees, no PMI, with all closing costs paid by NACA. Another benefit is that they hire their own home inspectors to review the property and any required repairs get completed by their preferred/pre-screened contractors as part of the loan. Because of the way their loans are structured, I have greater flexibility to negotiate a purchase contract in a way that pushes your low interest rate even lower (could be below 2%). At a lower interest rate, your purchasing power goes up (one past client was approved for $140,000 by a conventional lender and ended up buying a $210,000 home for the same monthly payment through NACA).

    So that the loan and the home are what buyers can afford, NACA requires they attend a homebuyer education class and counseling to prepare for home ownership. Ultimately, Buyers get approved for a maximum monthly payment based on a percentage of income after payment of other debts. They expect their members to give back by volunteering with them a few times after they get a loan, and buyers also have to be more hands on during the purchase process, being the primary contact with all inspectors and contractors (if the home requires repairs), but Fisher Herman Realty realtors still walk them through the process and assist wherever we are needed.

    If you enter your Zip Code and 150 miles and sign up for First Available homeownership classes in any location throughout the Carolinas or Georgia, you can usually get through the class within a week. Or in Charlotte NC, you can call or go in person to their office. As you can imagine, NACA is flooded with applicants some of whom have little income or organization. My observation is that organized and persistent people get these loans fairly smoothly and we can close within 2 to 3 months start to finish. Its a great program that gets people into the home they want as soon as they can qualify.

    0Reply
  • Jeff Catalano
    Member since 2020 · 1 post · 0 votes
    6y

    Hi All! I am an interested buyer from Long Island, New York.. I hope Tim and Karen are still following this thread as I can use some of their invaluable input on streamlining this process as much as possible.

    I have completed the NACA Workshop and I am 2 weeks away from my first event with my MC.. I have a family friend that works as a Real Estate agent in the area and I would love to use them as my agent. Other than the fact that they have to attend the workshop as well, what other valuable info should I tell them ahead of time so we aren't wasting ANY time.

    0Reply
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