Shelbyville, IN · Member since 2016 · 47 posts · 24 votes
Hi all, I figured I would ask the BP community if anyone has experience financing their first multifamily property using a USDA loan, or through the NACA homebuyer.program? My focus is on financing that comes with little to no down payment required, while house hacking in one of the units of said property. The goal could be a duplex, but preferably a unit with three or four units to reduce the mortgage payment. While this is in the Indy area, I'm open to experiences using either sources of lending to secure ones first property.
@Derik S.With USDA loans, just remember that location can absolutely be a dealbreaker. You can see the locations map here, you'd have to look pretty far outside Indy in most cases.
@Derik S.With USDA loans, just remember that location can absolutely be a dealbreaker. You can see the locations map here, you'd have to look pretty far outside Indy in most cases.
True, that's where NACA's program could be appealing. I don't know anyone who's used it, but geographically its less restrictive. I've seen properties in Shelby and DeCatur county, Johnson even that could be USDA eligible and one five minutes away from the other that is ineligible.
I haven't, no, but I've worked with a few people who have, and the location factor was the main blocker for them. (I've never interacted with anything with the NACA homebuyer program though)
Lender · Seattle WA · Member since 2025 · 211 posts · 33 votes
10mo
With NACA, the key is starting early—prequalification can take some time. You'll definitely need to live in one of the units to qualify, so make sure you read the fine print and are upfront about your plans from the jump.
With NACA, the key is starting early—prequalification can take some time. You'll definitely need to live in one of the units to qualify, so make sure you read the fine print and are upfront about your plans from the jump.
Hi Quinton,
How early would you say? While I can see it being on a case by case basis, how long has the pre qualification process through that program taken?
Lender · Seattle WA · Member since 2025 · 211 posts · 33 votes
10mo
NACA program you're typically looking at about 3 months to become “Qualified” if everything’s clean.. However I had a friend that took 6 months from start to finish. Having everything together will be your best bet..
Hi all, I figured I would ask the BP community if anyone has experience financing their first multifamily property using a USDA loan, or through the NACA homebuyer.program? My focus is on financing that comes with little to no down payment required, while house hacking in one of the units of said property. The goal could be a duplex, but preferably a unit with three or four units to reduce the mortgage payment. While this is in the Indy area, I'm open to experiences using either sources of lending to secure ones first property.
Thanks.
I haven't used NACA loan myself but we have helped multiple clients use NACA to close on multifamiliy homes in Chicago. The program is full of red tape, but it's worth it because the regular rates are lower than market rates & you can buy the rates down quite a bit. The one challenge, at least here in Chicago, there seemed to be no sense of urgency with the NACA office so we had to sit on them to get things done. If it wasn't for how the program made the cost of borrowing much cheaper I'd avoid it, but your bottom line cash flow will be higher if you have patience with the program