What are your thoughts on NACA for first timers?

Question

Have no friends who used Naca so wanted to see if anyone here has used them for their first purchase.

Do yall regret it? Or did it end up working out?

Any advice or tips?

Biruh Mezgebu · Answer

Hey @Omar Na ,

In theory, the program sounds great if/when it works. I personally know of 1 person that successfully purchased a house through the NACA program. Still, I know far more (5+) folks who were unfortunately unable to wait for the 10+ years (exaggeration here, more like 2+) to go through the steps before purchasing a property.

The program is great and provides many incentives such as no closing costs, No PMI, No Downpayment (means no equity to start with), and so on. Here is the reality you should expect when working with NACA. Their counselors are either overworked, or the organization is *extremely* understaffed. You will wait months to meet with your counselor to review your goal. You will most likely have new tasks assigned that seem irrelevant (like uploading documents you've already uploaded on multiple occasions). You can attend the dream workshop where everything is done on the same day, and if you're lucky to pass that stage, you can start working with their in-house (not mandatory) realtors. When inventory is low as it is in the current market and houses sell in less than 7 days of being posted, you're going to have a tough time convincing the listing agent to go with your offer over others (cash offer, conventional offer, or even FHA or VA offers) over your NACA offer. I say that because NACA has a lot of stipulations attached to their loans, so the listing agent/seller has no incentive to deal with the long process of going with your NACA offer.

The people I know who tried the NACA program but went with a different loan type met the established requirements by NACA, such as having required funds, reserve savings, payments being on time, etc. It seems like an outstanding program dealing with operational/management barriers, which keeps it from being a true value add to the community it attempts to serve.

Give it a try and see if your experience is different or the staff you work with provides a different level of experience than what I or others I know have been exposed to thus far. Good luck on your journey!

Jay Hinrichs · Answer

if you can go through the program it works very well for those who need it..  I have sold to Naca buyers and they get one hell of a deal.