Can i refinance my NACA mortage with a different lender

5 Replies


I'm new to real estate investing currently still researching about loan programs that will best help me as a newbie I don't want to make any mistakes I'm scared... I read a bit about NACA mortgage. Anyone with an advice for me before I proceed.


Can I refinance and pull cash out of a property? Like a brrrr strategy


Can I refinance NACA mortgage with a different lender?

@Campbell Agyei I closed on a fourplex with a NACA mortgage that I still have to this day. A few things about NACA, the process heavily deters investors for a few simple reasons:

1. You cannot have any ownership stake in any Real estate to close a NACA loan

2. NACA process is very long and arduous. It is not a quick 30 days and you are into a property. Average time frame is 1-2 years start to finish. I was with the program for 2.5 years, four unit purchase, complete gut, down to studs. Reno was 10 months but took a full 12 to get all the paperwork squared away.

3. If you can get a loan, its based on Owner occupy. If you move out you can refi to pull cash out i with another lender but this investment strategy should not be the relied upon as there are many factors in the NACA process that could kill your deal.

Short story is, if you can get a NACA loan, its worth it but it is NOT easy. Most of the issues are dealing with NACA reps who do not know a lot about the process or get back to you within a reasonable amount of time. So this lack to education/timeliness means you cannot move quick on deals and their process holds you up and could kill your deal. I was in escrow for 120 days and almost lost the deal 7 times due to NACA's incompetence in handling my file/understanding of how to UW a property.

If you go through it, you're in for a ride. 

@Jonathan Taylor The same has been my experience with NACA as well. I have yet to even make it to the underwriters because my MC is NOT efficient, professional, or knowledgeable at all! I was on hold for 2 weeks because she didn't understand how my AGI was calculated on more than just W2s. I've watched SEVERAL properties come and go. I have been going at it this time around since Jan 2020.

@Cheran Farrow Thats to be expected unfortunately. I had to teach my MC how to UW my file by showing them how to calculate income. Its so frustrating and NACA does not realize how costly this is to borrowers but they are an antiquated system and this pandemic does not help at all. Im sorry you have to experience this but sadly, its very on brand for the experiences of those who go through NACA.

@Jonathan Taylor i just came upon this thread, thanks for the information its helpful. Question for you though since you seem to be very knowledgeable on NACA. In your experience does NACA make it harder to refinance out of a loan if one were to do that within 5 years of closing? Or is it just a matter of having your paperwork together? Im curious to know when the time comes since i do plan to do this in the future, my MC said it shouldn't be a problem. Just wanted a second opinion thanks!