9 Replies

Hi everyone,

I am located in Massachusetts and was wondering if anyone has advice on first time home buyer mortgages. I was looking into the NACA program, but after some more research, I don't think it's the best route for me. My goal is to purchase a multi-family home and live in one of the units, hoping to have my rent (mostly if not all) covered by my tenants. I would like this to be my first real estate investment, but I'm lost when it comes to loans! NACA looked great because of it's no money down, but as an investment it didn't really fit my goals.

I am looking for a low down payment loan because I don't have much saved right now. 

Thank you!

@Jennifer Ouch

I know someone that used NACA successfully to purchase a duplex. However, the program really wants buyers to stay in the property for a long time. If that fits your long term goals then it's an option.

You should check to see if your county or state has a first time home buyer program available. These programs are usually county or state specific.

Definitely non-NACA programs in MA. I used one myself to purchase a 2-fam. I used the Right Step loan program through TD Bank, but I believe other banks offer as well since it is a program through Mass Housing. 5% down, 30yr fixed, no PMI, and great rate. You do need to meet pretty generous criteria in regards to income and the property and will need to take a 1st home buyers course and 1st time landlords course. Definitely worth it.

@Jennifer Ouch

Welcome to BP! You can also look into FHA and Mass Housing.. these are 3.5% and 5% down

@Jennifer Ouch I have a couple of clients going through NACA now. I'm told that you really have to stay on top of them. Be your own advocate.

They say that you have to owner occupy for the life of the loan, so when the time comes for you to move, you'll just have to refinance.

@Steve Bracero yes I've been researching the FHA loan because of its 3.5% down, and only has a requirement to live within the unit for one year vs. NACA they want the owner to live there for the entire occupancy.. they also place a 25k lien on the home it just seems a bit more difficult to leave the property if something comes up

@Charlie MacPherson do you know about the lien they place on the home? with my research it sounds like refinancing would be a bit difficult needing their permission. I've been going to my appointments and bringing documents as i keep researching, i just don't know if it's worth going through their loan yet.


Hello Jennifer Ouch,

The lien isn't as big an obstacle as you may think it is. It exists mainly to enforce the owner-occupancy requirement. If you at some point want to refinance, a lien release is easily obtained from the NACA Member Assistance Program (MAP) department.

Tim Trumble

Online Operations, NACA

@Tim Trumble thank you! do I also have to volunteer every year throughout the entire life of the loan?

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here