New to Real Estate · Member since 2020 · 34 posts · 12 votes
Hello,
Im debating whether to use NACA or not because I don't want to be stuck for 5 years on a deal without being able to refi. The policy is to stay in the property for 5 years or you pay $25k lien they place on your house. However I just saw on their site they say this occupancy rule is unless you sell or refinance. It seems then refinancing is allowed. Any loopholes past NACA recipients are aware of?
I was able to do exactly this ~3yrs into a NACA loan. When you're ready to refi, you'll simply need to request a lien release from NACA (basically your mortgage agent sending over a bit of info to NACA).
NACA had no problems with you asking for the lien release even though it was less than 3 years?
Just double checked the exact timing and it was closer to 3.5yrs of ownership but got no - I received no pushback from NACA.
What kind of loophole are you looking for? NACA puts a $25,000 soft-second lien on the property to ensure that the Member lives in the property for as long as they have the NACA Mortgage - https://www.naca.com/faq/gener..
For the reasons you mentioned, I don't think it's attractive for house hackers. The program isn't designed for investors and to me there are too many restrictions.
Im debating whether to use NACA or not because I don't want to be stuck for 5 years on a deal without being able to refi. The policy is to stay in the property for 5 years or you pay $25k lien they place on your house. However I just saw on their site they say this occupancy rule is unless you sell or refinance. It seems then refinancing is allowed. Any loopholes past NACA recipients are aware of?
Goal- buy multifam, house hack and refinance out
Thanks for that! Although not ideal for investors, Im torn because with the money saved on the down payment and closing costs you could buy down interest, put a down payment on another home in a cheaper place etc. But their policy confuses me regarding refinancing (I assume BRRR play is prohibited and reached out to them too) I need to somehow calculate if the money saved is worth the velocity and freedom lost in being able to buy when and where I want and buy in the way that will make the best ROI.
I was able to do exactly this ~3yrs into a NACA loan. When you're ready to refi, you'll simply need to request a lien release from NACA (basically your mortgage agent sending over a bit of info to NACA).
I was able to do exactly this ~3yrs into a NACA loan. When you're ready to refi, you'll simply need to request a lien release from NACA (basically your mortgage agent sending over a bit of info to NACA).
NACA had no problems with you asking for the lien release even though it was less than 3 years?
I was able to do exactly this ~3yrs into a NACA loan. When you're ready to refi, you'll simply need to request a lien release from NACA (basically your mortgage agent sending over a bit of info to NACA).
NACA had no problems with you asking for the lien release even though it was less than 3 years?
Just double checked the exact timing and it was closer to 3.5yrs of ownership but got no - I received no pushback from NACA.
I was able to do exactly this ~3yrs into a NACA loan. When you're ready to refi, you'll simply need to request a lien release from NACA (basically your mortgage agent sending over a bit of info to NACA).
NACA had no problems with you asking for the lien release even though it was less than 3 years?
Just double checked the exact timing and it was closer to 3.5yrs of ownership but got no - I received no pushback from NACA.
Awesome thanks for that. Its possible I might refinance a little after a year of owning. The rate is pretty good though and I might have to move for work related reasons and if thats the case I’d love to keep the NACA loan at its rate without refinancing. Gonna see if this will work closer to that time but good to know I can refinance if need be as well.
I was able to do exactly this ~3yrs into a NACA loan. When you're ready to refi, you'll simply need to request a lien release from NACA (basically your mortgage agent sending over a bit of info to NACA).
NACA had no problems with you asking for the lien release even though it was less than 3 years?
Just double checked the exact timing and it was closer to 3.5yrs of ownership but got no - I received no pushback from NACA.
Awesome thanks for that. Its possible I might refinance a little after a year of owning. The rate is pretty good though and I might have to move for work related reasons and if thats the case I’d love to keep the NACA loan at its rate without refinancing. Gonna see if this will work closer to that time but good to know I can refinance if need be as well.
I'm currently in escrow with NACA. Currently the soft line is 25k but it goes down 5k a year. So after a year it would be 20, after 5 years the lean is gone but they still expect you to refi out of the NACA loan if you don't personally live there. You have to run your own numbers but compared to a 203k loan the NACA lower rate and no closing costs were a slam dunk even including the potential 25k. Biggest drawback is the time, they are slow. Expect 45-60 day close if significant repairs are needed.