NACA mortgage program?

[postie]

I had a friend who still have super excellent credit of over 800+ FICO score, she applied for NACA (Neighborhood Assistance Corporation of America) for those first timer with:

• no down payment,
• no closing costs,
• no fees,
• no requirement for perfect credit,
• and at a below-market interest rate.

and while she closed earlier this year on a house, she's happy with the program and strongly recommended me to try that. I wonder if any of you have tried this program? I am waiting for response to my e-mail questions from NACA such as bankruptcy OK? if so, how long do I have to wait to apply and all that stuff.

Thanks!

[kmjatl]

I would give it a shot. NACA: No money down, interest rate buydown, (most) closing costs paid by the lender, NO PMI and a below market interest rate. Loan limit based on geographic area. The home MUST be owner occupied. NACA places a subordinate lien on the property to enforce this. If you need to sell, no problem, NACA will send a lein release to the closing attorney at time of sale,
FHA require a down payment (3.5%), might not offer buydown, buyer pays some closing costs (origination fee!), PMI (1.5% of loan up front, annual PMI of 0.85%). Higher loan limit.
Plus, NACA requires a pattern of savings (“payment shock”), uses alternative credit (utility bills, cell phone and others) and these bills must be paid on time.
I attended my workshop in May. 2014. It took a while to get my stuff together and I was qualified on December 17. Still looking for a home because there hasn’t really been anything I like on the market (Warning: Real Estate agents take the BEST Pictures ) NACA has in house agents or you can bring your own. As far as the NACA agents go, your mileage may vary.
IF I were to walk away today, I have 12 months of all bills paid on time, a better credit score, a nice pile of cash in the bank and a little more knowledge of the home purchase process. I was able to drop my natural gas bill by 2/3, and received 2 electric bills for $0 with a notice stating “deposit applied”. And I would get a higher interest rate, spend thousands of dollars more to pretty much get the same home.
I have also been told that NACA has a less than 1% foreclosure rate. That is a product of “the ringer” you have to go through to get qualified.
So it sounds to me like, even in the worst case scenario, you come out ahead.
Yes, some things get confusing, the MCs, RE Agents and Underwriters are swamped and not as responsive as we think they should be. That is a testimony to the popularity of the NACA program. 5,000 people turned out in Detroit for the first workshops held there. With the HomeSave program, NACA has literally filled arenas with people needing help.

So here is what I would do right now:
1) Go to www.naca.com and sign up for a workshop. Don't be afraid to travel 50 or more miles if you have to.

2) Start saving $. In a savings account. At least the difference between current rent and expected mortgage payment. If you think your mortgage will be lower, do this anyway until you meet with a mortgage counselor and they tell you otherwise. NACA wants to see a pattern of savings over time. Plus, this will benefit you because you can buy down the interest rate. On the 30 year loan, 1% of the loan amount cuts your rate by .25%

Get your documents in order:
3) 12 months of bills paid on time. Utilities, credit cards, student loans, pretty much everything.
4) Paystubs and bank statements for 90 days.
5) 12 months of rent checks. If you are paying electronically, STOP and start paying by check.
6) If you are divorced, gather your divorce papers that prove you are divorced, alimony received, child support paid, etc.
7) If you are paying child support, cancelled checks for 12 months.
8) Gather all your Bankruptcy filings. They will want to see these (this is where a PACER account comes in handy).

[kmjatl]

And on the 16 month anniversary of my Ch, 13 discharge, I closed on a NACA mortgage. 30 year fixed at 2.5%