All Forum Posts by: Tim Trumble

Just remember that there is no such thing as over-prepared, be patient and persistent and give your counselor your full, 100% cooperation. The NACA program isn't designed to be fast or easy, but if you follow the guidelines, you WILL succeed.

• Lots of people find it very helpful to keep all the relevant documents on a thumb drive so they can instantly resubmit them when the counselor asks.
• Read the manual you will receive at the initial workshop cover-to-cover. You can download a PDF copy at https://www.naca.com/Scripts/pdfviewer/web/viewer....
• Email is always better than phone to reach your counselor.
• Don't contact your counselor with general questions that can be answered by NACA Member Services or on the NACA Forum.
• Stick with it!

Tim Trumble

Online Operations, NACA

Hello all,

@Carley M., we are now connected. Thanks!

Just so everyone is aware, I do routinely monitor Bigger Pockets and will chime in when I feel it's appropriate.  As such, any questions that are specifically for me can be posted here and they will definitely find their way to me.

We are certainly aware of the situation of which you write. As most of you already know, NACA is an extremely detailed and thorough process. Long story short, we have in the past had occasional issues with taking longer than anyone (including us) was comfortable with to get a loan closed. As a result, the hesitation has mainly originated from realtors who were not willing to wait for the deal to close under our exacting standards.

We have actually addressed this issue over the last year, making several steps to streamline our process, but never to the point of compromising our values.  Our target timeline is now 28 days from contract to closing and 16 days from submission of the actual bank application to closing, and the vast majority of loans are closing within that timeline. The only things that are holding up files at this point are if there is a challenge to the appraisal amount, which can add about ten days to the process, or (more commonly) things simply being backed up at the bank because of the volume of loans we are sending them right now.

With regard to a possible violation of the Fair Housing Act, I'm by no means an attorney either, but I did speak with one of our attorneys a few months ago on the topic of refusing a NACA loan being possible discrimination. Since refusing the loan because they are afraid of how long it may take is not actually an act of retaliation against NACA, it would not meet the law's definition of discrimination.

It stinks, it's not fair, but it's not illegal, even though it should be. As long as you have a legitimate source of funding, a seller shouldn't be able to refuse to sell to someone just because they happen to not like the source or have heard negative gossip about it. But until a rejected buyer sues a seller over the issue and wins, they can get away with it.

For now, the best defense is to point out that a NACA Qualification Letter is in fact a much more reliable source of funding since it has already been approved by an underwriter as opposed to the bank's pre-approval letter that is little more than a guess at what the buyer can afford. You can also show the our 28 day Contract to Closing Timeline which is pages 23 through 27 of the presentation at:

https://www.naca.com/Scripts/pdfviewer/web/viewer....

Hope that clarifies things a bit.  BTW, thanks to everyone for being so welcoming of my input here!

Tim Trumble

Online Operations, NACA

Hello Aaron Murphy,

Carley M. is correct. You may not use the NACA piurchase program if you have an ownership interst in any other property.

Tim Trumble

Online Operations, NACA

Congratulations @Carley M. on your closing!

@Sobeyda Gomez-gonzalez, we hope your NACA journey is extremely successful! As @Carley M. noted, be prepared for a few bumps in the road, and you should do fine.

Hello Gabrielle Martin,

Yes you may buy another property through FHA as long as you maintain the terms of your NACA loan on the fourplex.

Tim Trumble

Online Operations, NACA

@Ashley Sanchez Based on your profile, the NACA program would probably work for you. You noted that you intend to make the property you are going to buy your place of residence, which would meet our owner occupancy requirement. Very simply, you MUST live in the property for the entire time you have the NACA mortgage. We enforce this with a $25,000 lien that is placed on the property beginning at closing.

The NACA program allows you to buy yup to a four unit property just as FHA does. Also, most down payment assistance programs are compatible with the NACA program, but the funds are used to buy down the interest rate since NACA is a no-down payment program, and the interest rate buy down is a more effective use of the funds anyway.

I do have to express a note of caution about Marcus Cannady's comment, "This program is definitely NOT for an investor, however....surely there are ways to hack this". The owner occupancy requirement is an absolute, and going into the program with the intent to find a way to avoid the requirement is potentially stepping into some very dangerous territory.

The place to find out more about the NACA program is by at a NACA Home Buyer Workshop, which can be located on the NACA website.

Tim Trumble

Online Operations, NACA

Hello Walmsley,

Any and all payment figures you see regarding NACA loans are fully amortized, including Principal, Interest, Taxes and Insurance.

The program isn't meant to be fast or easy, but for those who stick with it, the rewards are always well worth it.

With a below market interst rate, no down payment, no closing costs, no PMI and the ability to buy the rate down to nearly zero, the money saved is woth the effort.

Tim Trumble

Online Operations, NACA

@Oren Markowitz,

There are no penalties for refinancing a home bought through NACA. However, you do need to submit a request for a release of the $25,000 lien NACA places on the property to guarantee owner occupancy.

Tim Trumble

Online Operations, NACA

NACA has an office in Little Rock. You can learn all about the NACA process by signing up for a free workshop on the NACA website.

@Ruth Bayang, Jay is correct. NACA does not do refi's of any sort.

Tim Trumble

Online Operations, NACA