FHA of NACA financing for first househack

[Rodney Harris]

Hello! It's time to roll up my sleeves! I am looking at different first time homeowner programs to get into my first house hack!

I know with

FHA

3.5% down with seller assist up to 6%

Smoother process (I heard) than NACA

Since it's federal of course there is a lot of red tape

Have to stay for 1 year

NACA (still need to do more research)

0% down , no down payment, no closing costs 

Longer drawn out process than FHA

Have to stay three years? ( not sure on this one)

Buy out clause close to 25k?

I would like to get into a fourplex but a duplex would do! However there are duplexes and a fourplex that I could get into. I want to get into something by the end of the year. 

Should I go with FHA since they are more proven and used in the investing community and possible get into my house hack quicker?

Should I got with NACA that would help me preserve capital, but have a longer process, but possibly have me in the same place for 3 years which is what I don't want lol

What do you guys think? Thanks in advance!

[Tim Trumble]

While you would save tens of thousands of dollars, even over an FHA loan, strict adherence to our rules is a must. As for the comment "NACA doesn't check to make sure that you are living in the property", this is true. However, the BANK will find out if you move out of the property and will report it to us. You are in fact required to live in the property for the entire time you have the NACA loan. The only way to avoid the owner occupancy rule and the $25,000 lien we place on the property to enforce it is to either sell or refinance the home, which you may not do for the first five years.

The NACA program is strictly for the purchase of your primary place of residence. If you are planning to try to "get around" some of the requirements of the NACA program, then unfortunately, I have to suggest that you not use our program.

Tim Trumble

Online Operations, NACA