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Kathleen Davis' Blog

By Kathleen Davis | Mortgage Broker
or Lender in Pleasanton, CA

NACA Loan????????

Here is the website:  www.naca.com

 It is a 100% loan with no point and no fees.  Here are just few things I have read and heard about the program.

 •1)    Requires a 45 day loan contingency

 •2)    They require the borrower to sign up as a member where is there a monthly fee: 

 Once you purchase your home, you will need to pay the Membership Fee, which includes the Neighborhood Stabilization Fund Fee,of $50 a month for a period of between five and ten years, depending on the amount of the mortgage. The Membership fee entitles you to not only NACA's comprehensive counseling to assist you throughout the home buying and mortgage process, but also to NACA's membership assistance for NACA homeowners ......https://www.naca.com/members/eligibilityIntro.jsp?language=null  

 •3)    Member have to participate in various "community" activies: 

 Participation Advocate for Economic Justice. NACA's success has been the result of the active participation of NACA Members and supporters. As a NACA Member, you need to begin to fulfill your Membership commitment of participating in at least five actions and activities a year in support of NACA's mission. There are numerous activities to take part in, including participating in demonstrations, volunteering in the NACA office, serving on a peer lending committee, and assisting new Members with the home buying process. Contact your local office or NACA's national office at 1-888-297-5568 to discuss how you want to fulfill your commitment.   https://www.naca.com/members/purchaseStep.jsp  Step 5    https://www.naca.com/members/eligibilityIntro.jsp?language=null

 •4)    Section 1 repairs need to be completed or funds in escrow at close to do the repairs based on quotes for the repairs (FHA does not require this unless appraisal finds something with respect to Security/Soundness/Safety)

 •5)    Max sales price that I saw for 94588 zip and areas within 20 miles was $450K.

 6)   Long close (I would guess 60 days)

 I'm looking for feedback on this loan and if anyone has used it?

Comments

By Thundercat,  Fri Apr 17 2009, 16:41
I am currently signed up for the NACA process. I have my 4hr orientation tomorrow, so I'll know more then.

But I have been going to open houses (just because I'm new to NYC and wanted to figure out which neighborhoods best suit my needs). At one of the open houses I went to it was a foreclosure and I was talking with the listing agent, he only lists foreclosures for banks. He said banks LOVE NACA buyers because if they get thru the entire process they are educated and much more likely to be able to pay their mortgage since they've been educated about what lies ahead. So he says he's dealt with a lot of NACA buyers.

But at a different open house I went to a realtor spoke poorly about NACA saying that most people that start NACA don't finish it. And that NACA is so slow a lot of sellers don't want to deal with NACA buyers.

*shrug*

There is no such thing as a free lunch and everything has a good side and a bad side, I guess.
By Lynn Lends,  Tue May 19 2009, 07:35
Naca is a great program. I previously was employed by NACA as a housing counselor. The program is rigorous and you really should not even look for a house until you get NACA approved. Once you get approved thru the program then, you should be able to close fairly quickly. I recommend the program highly. If you follow your counselor's adice, you will get your home. It truly is the "Best Mortgage in America" and it is worth the steps that you must take to get it.
By Beverly Hoge,  Tue May 19 2009, 08:03
Be aware that if you are working with a buyer using NACA that you may not be paid a commission. You, as an agent, must be enrolled and active in their program and listed on their "preferred" agent list before they will pay you commission. It is my understanding that you can refer a buyer to their program and pay them a 35% referral fee if you are not an agent on their list. But, the buyer must tell them that you are their agent before entering the program.
By Bruce Lynn,  Wed May 20 2009, 00:01
I've heard lots of people talk about this program, but have not seen one buyer actually complete it. Sounds good, smells funny.
By Left Hangin,  Tue Aug 18 2009, 23:55
my experience with NACA....

I started this process in the first quarter of 2009. It is now August 2009 and have not heard anything back from them. I cant get anyone to call me back. Its been five months and not a word regarding my eligibility OR ineligibility for thier mortgage product. dont know what to do at this point. i cant afford a down payment or closing costs so this program would be great but they dont want to help for some reason. I complied with thier requirements for all this time and still NO ANSWER. IF i can get a hold of someone it seems im getting the runaround.
By Been There,  Fri Sep 25 2009, 09:10
Hangin,

No worries. We completed the program in 2005 which we had started in 2004. Nearly one year later. They were extremely slow & inept. If you are willing to put up with the months of frustration then it is worth it. But you will have months and months of frustration just brace yourself! But we did end up with a great loan, with no points, 30 year fixed 100 percent financing. The membership fee is negligible compared to PMI so overall you are saving a lot of money. They require a lot, as someone else said it is rigorous!

My best advise would be to figure out your potential mortgage payment and start saving that amount every month in a statemented bank account (less your current rent) if you can show that you have done this for at least 6 months you will be able to get through their processes much quicker.
By Kelli Glover,  Tue Mar 16 2010, 13:39
My Experience in Ohio on closing time was 45 days...barring you have the Contractors quotes in place as soon as the Home Inspector comes out with his report. The key on timing is having the NACA Approved people working on the trasnaction keep in contact with you as the agent so you can keep everyone on track.

To Left Hangin: You will want to continue to fax all your docs each month but also follow up with a call to your counselor to make sure they see it in your file. This will take due diligence on your part but will be well worth it in the end when you have your mortgage.
By Stay Positive,  Wed Mar 17 2010, 07:58
I went through naca recently. It is beyond frustrating, I agree, but if you will stick with it the reward is great. You really have to advocate for yourself. Some things I did where: 1. show up at the office when it opened and said "hello, i'm here to volunteer," (I took a half day off work twice to do this) when you show up they have to tell your counselor that you are there so that you can get volunteer credit (hopefully you'll be able to speak with him/her or at their very least this will let them know you are serious) 2. Volunteered on Saturdays at the workshop, again just making myself known. 3. Keep all documents that you faxed and bring them to your appointment (also there is a link from your account that you can click on right after you fax to make sure your fax was received, make sure to do that each time).
I know it's hard but hang in there and do all you can. This is not your typical loan office and process but you will not get a typical loan (my interest rate is only 2%, the buyer gave me over $24,000 to buy it down.)
By Naca Is A Fraud,  Thu Jul 8 2010, 09:52
I have been a NACA member since 2007. I heard of the organization through a person that was part of a community service project I was working on. My experience with NACA has not been a pleasant one. I have been misinformed, ignored, passed along, and have been treated unfairly. Documents have been lost, time has been wasted (years), my life has been changed. I've dealt with disorganization, miscommunication or lack of, and all is none of my doing. I have done everything this organization has asked of me since 2007. The end result is that the bank killed the contract. I am now if the process of trying to get a FHA...which my NACA counsler told me I should do. The counslers get a comp for ever loan they send to the bank regardless. You come out of pocket for the inspections and membership fees and credit checks. I've wasted 3 years being patient, jumping through hoops and over hurdles just to be rejected in the end. I was told that the bank doesn't make much money from the NACA loans so we are low priority. I've referred several people as required for membership...I feel so bad because all are going through the same thing I did. One of which they killed her contract and had her start the process over for a new home. She's been getting the run around to date. We need to spread the word to people. I hate that I have told people positive things about this org and such negative things have come out of it. I don't want to put anyone else through this. Please, let's organize to put a stop to this.
By S. I,  Fri Aug 13 2010, 16:55
I tried to get a loan mod though this tired complete waste of time program. I did a phone interview with some idiot who knows nothing about loan modification. He could not even answer my questions fully, so I asked the tired rep how long has he been with NACA and he told me he had just started with them a couple of months ago, and that he used to be in car sales. LOL!!! I started doing research on my own about NACA reviews and my jaw almost hit the floor, I am definitely not going with this BS program I mean its free but now I know why. While i was doing my research I ran across a lady name Callie Thompson and she at least sound like she knew what she was talking about. Not only was my loan mod approved in a week I saved my house, and if this helps anyone please do your research on any program that states its free!
By Kathleen,  Thu Aug 26 2010, 00:31
I didn't see a place on NACA's site to ask this question, maybe someone here knows. ?Is this plan only for first time buyers?

We're not. We're not upside down but we are in forbearance.

We're living in our home; our HAMP denial has gone to the OCC for arbitration. If the OCC can't help, are we eligible for the NACA purchase plan? We were 18 months in the HAMP trial.

Kathleen
By Allan Erps,  Mon Aug 1 2011, 05:06
Have been throught this process on the Sellers side. Honestly the Loan was very long winded, arduous and painful. Little risk for Buyer, big headache for Seller! Lost a client who had second property to sell!
By Scottp,  Tue Apr 10 2012, 11:51
Dear Thundercat, if you get this response... would love to know how the NACA process worked or didn't work for you. Please email me: nyscubamann@yahoo.com
By Akil Walker,  Tue Apr 10 2012, 15:01
i bought my first home thru NACA. They helped me developed a budget. and approved for a loan. it was tedious but gone over 4 - 6 months.

Hangin Left-continue to hang in there. i would visit the office in person.
By Mrs.workman,  Sat Jun 30 2012, 01:30
is there anybody on here from philadelphila i just heard about this and wlling to give it a try
By Frustrated1980,  Tue Aug 7 2012, 22:31
Does anyone know if the $50 fee will automatically stop. I was told 5 years and July 2012 made 5 years for me. It is now August and I'm not sure what I should do regarding this.
By Steve Dibert,  Sat Sep 8 2012, 14:30
Is NACA The Russian Romance Tour Operator Of Foreclosure Rescue? http://www.mfi-miami.com/2012/09/is-naca-the-russian-romance-tour-operator-of-foreclosure-rescue/
By Itsawg,  Fri Dec 13 2013, 15:45
Im from Philly and I want to know more info about NACA
 
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