I must say my successes and experiences are based solely on the NACA office in Dallas, TX and the efficient job that Mickie Thompson the loan counselor does for her clients.. She is compassionate about helping buyers. NACA has a very small percentage of buyers being approved for various reasons such as buyer's being overwhelmed by the approval process or not being prepared to buy a home, Realtors not understanding the NACA approval process or not committed in helping their buyers go through the process; loan counselors are overworked; not enough loan counselors to meet the needs of the community, underwriters are backlogged, etc. So there are many reasons why buyers don't close. I have been a Realtor for over 14 years and working with NACA buyers for 5 years. THIS YEAR ALONE I HAVE SOLD OVER 20 HOMES THROUGH NACA! Although I work with all types of buyers and sellers I have a team specifically to help process my NACA buyers and we get buyers prepared to close qucker. I do interview my buyers and I hold them accountable and if they are not serious about going through the NACA process or a traditional loan process such as FHA than I cut my losses and move on. NACA offers NO DOWN PAYMENT, NO CLOSING COST, NO MORTGAGE INSURANCE AND LOW FIXED INTEREST RATES. So how can you not be motivated to do a little sweat equity and get approved?
Here are a few tips to help you decide if NACA is the best product for you:
1. The best advice I can give anyone is to attend a workshop to get your own understanding rather than reading the negative reviews and be prepared to see hundreds of buyers at the workshop
Take notes and ask plenty of questions. Don't leave until you fully understand how to calculate payment shock. PLEASE DON'T POST NEGATIVE REVIEWS. If you file is taking longer than usual reach out to your loan counselor or a NACA representative on the NACA blogs. They are very helpful. Most importantly be patient and plan ahead if you know you have credit issues. I wouldn't recommend Remote Counseling, period! I can't stress enough how important it is to READ THE NACA BOOKLET YOU RECEIVED FROM THE WORKSHOP.
2. After you receive your ID # start uploaded your documents and keep your file updated. It's crucial that you complete the budget. Pull your credit to see if you have any late payments or collections. Credit Karma is an excellent app. If you have late payments in the last 12 months and collections less than two years old it will take you longer to get approved. YOU ARE THE PROCESSOR SO STAY ORGANIZED.
3. Complete everything on the Task List your Loan Counselor gives you and always come prepared and organized to your appointment.
4. PAYMENT SHOCK. If you are expecting to save in order to get approved for more than your rent you must understand how NACA requires you to see over you will have to start over. Payment shock is a minimum of 3-6 months and the length of your savings depends on you leasing or living with a family. READ READ READ THE BOOKLET. Remember you must continue to save until you close. BTW Income tax checks and annual bonuses do not count as SAVINGS because it's not a a continuous payment.
5. Make sure you have 3 positive trade lines or you will not get approved. Trade lines can be cell phone, electric bill, insurance, etc and the key is to pay ON OR BEFORE THE DUE DATE. If you are not disciplined to pay your monthly bills on time set up auto pay. ALWAYS PAY RENT WITH A PERSONAL CHECK OR IF YOU ARE REQUIRED TO PAY ONLINE MAKE SURE YOU PAY FROM YOUR OWN ACCOUNT. Late rent payments and returned checks from NSF will be denied if with overdraft protection.
6. ZERO CLOSING COST! What does that mean? I'm glad you asked. The lender pays your closings costs such as title fees and lender fees including the title policy and the appraisal. The buyer pays the follow fees when they have an approved offer: Earnest Money, Option Money, Home Inspection and Termite Inspection. At closing there are Escrows Fees which covers Prorated Property Taxes, Homeowner Insurance, HOA fees if any and additional costs if you choose to buy down your interest rate. That's It!
7. It's time to submit your file to underwriting! Once you have done everything your loan counselor have required you to do to they will submit your file to underwriting. It could take 3-5 business days for a response. Be prepared to have conditions returned from the underwriter and if you have to write letters of explanation. Don't complain JUST DO IT!
8. YOU'RE APPROVED!!!! These are words every buyer wants to hear. If you follow these steps you will get approved. The next step is finding a home and getting closed. Now that's why you need an experienced Realtor that know the NACA process!
If you are in the Dallas, TX area I would love to help you through the process.
Alecia Smith, Realtor
William Davis Realty
The positive of NACA- she has a 30 year fixed rate mortgage at somewhere in the neighborhood of 1.125%. They also pre-screened her far more carefully than a bank would have- which I think is a very good thing (it's in everyone's best interest that the buyer understands what they can comfortably afford). If you are organized and patient with their process- it will help you immensely. The ridiciously low interest rate allowed her to buy a much more expensive home than if she went through a traditional mortgage program.
The negatives of NACA..due to the lack of transparency in the process once a buyer has submitted all of their paperwork- I can't be sure who screwed up- the bank or NACA. My friend's deal nearly fell apart because the deal was so slow. NACA stated that closing was to be 2 months after contract signing. 4 1/2 months later the deal finally closed- but not before the seller's threatened to keep the deposit and walk due to breech of contract. Once NACA got wind of the seller's threatening to walk and my friend sending them an email pleading for her sanity to be restored and the deal to be closed- only then did she get the approval to close. There were other problems too. Because there are additional requirements in the contract that are complicated- they recommend that you use a NACA approved broker. Based on my observations of my friends experience- use your own broker. The broker that they recommended was totally imcompent and impeded the process. I recommended that a complaint should be filed with REBNY. I want to be as fair as possible- so I think it was incompetence rather than greed or kickbacks- but the contract was written up for 5k more than was verbally agreed upon by both parties. Now I don't excuse my friend for not noticing the price difference before signing the contract- but it is still inexcusable that the agent wrote up the contract for a higher price. In addition, the broker had difficulty returning her calls/emails as well as the buyer's brokers calls/emails. The brokers incompetence went far deeper than this- but I want to keep this as brief as possible (though still through). The final negative with NACA was that the house needed some work- this was all part of NACA's process- but you do have use a NACA approved contractor. My friend was given a few names of contractors that did work near where she is buying. Her first choice on the list ultimately still had some administrative issues outstanding with NACA and she couldn't use them because they were so ineffiecient at processing the contractors paperwork. The NACA inspector was needlessly nitpicky on some minor issues (i.e covers for electrical outlets that probably cost less than a dollar each) while they missed some signficant issues (the large living room window needs immediate replacement and is about to fall out of the wall).
I hope this helps. I believe NACA can help save a buyer tens of thousands of dollars over the life of a mortgage- but you need the patience of a saint, and must be better educated than the average consumer in order to work with them.
My sister bought a house in California, down the street from where I am now attempting to buy. She did a buydown. I believe the rate at the time she applied was 3.75 and it took her 27K to buydown to an interest rate of .0625. Her closing (taxes and hazard insurance) were less than 3K. Where else can you buy down to almost zero? Nowhere else. When she was frustrated she would just breathe and say out loud, ".0625... .0625.... .0625..." It is worth it in the end.
Best advice I can offer is be organized. Buy a 3 inch binder (heavy duty only) and dividers. Divide into: NACA fax cover sheets; NACA forms; taxes and W2s; credit cards and loans; retirement; Letters of Explanations; other.
Letters I had to write:
1. Why does my credit report have 20 different addresses and PO Boxes--moved around, college, etc. Had to do a timeline of where I lived and when and which PO box went with that time period. I went back 20 years..
2. Why is my nickname on my credit report?
3, Why am I claiming my grandfather on my taxes?
4. Provide a copy of my voter registration card--certified by registrar
5. Why does my license have a different address than the residence--send all mail to PO Box--provided a utility bill to show the residence and the mailing address
6. If I spend more than 200 (check or cash)--where did the money go?
You get the picture. Another piece of advice is to make your follow up appointment while you are still on the phone with your counselor. I was always under the false assumption that my counselor had time outside of out appointment time (phone appointment) to work on my file. THEY DO NOT. They are on to the next appointment right after you, so if you want them to work on your file again, schedule a follow up appointment so that they allocate that time for your file.
Good luck and give it a try... remember to breathe...
I am not a NACA Realtor. I am a Realtor with William Davis Realty, however I sell many homes through the NACA program in the Dallas/Ft Worth Metroplex. I choose not to be sponsored as a NACA Realtor because I enjoy working with all types of buyers with different types of lenders that allow me to educate my buyers with different programs. And I have the ability to list homes for sell where a NACA Realtor does not have that option.
Every client I have sent to NACA closed and closed on time. It's the Realtor's responsibility to assist their client through the process and if I have a buyer that is not willing to take the necessary steps to become a homeowner I simply do not waste my time and cut my losses. The buyer has a responsibility to keep their files current and follow the task list they are given by their loan consultant.
As of April 14, 2014 I am working with 4 buyers that went through the workshop the end of March 2014 and they are all approved. I have 3 clients that went to the workshop on January 22nd, received their NACA ID via email the following week, paid their membership fee and credit report fee, uploaded all their documents, completed the online budget and scheduled their appointment for February 4th with the loan consultant and was approved the following week and we went to the approval workshop that Thursday to receive their approval letters. They are all closing in 2 weeks. It doesn't get any better than that. So my recommendation is rather than complaining about the process, do what it takes to get approved and use an experienced Realtor that understands the NACA process and you will close in 30-45 days from the date your contract is executed. NACA is the only program that has 100% financing, pays your closing costs and does not have mortgage insurance premiums and the lender now pays the $50 NSF fee that by the way benefits the buyer if you have a hardship and no credit score requirements.
So try to go FHA and it's not going to happen!!! Unless you have a 620 credit score, no late payments, no collections and by the way FHA requires collections to be paid now and the MIP is extremely high and it now stays with your mortgage payment for the life of the loan. So while you all are making such negative comments there are just as many buyers that are closing with NACA and moving in to their new home that you could have had if you just followed the guidelines. Nothing doesn't come without work involved.
So I highly recommend you think about what really went wrong with the NACA process and why you didn't stick with it. Could be you or an inexperienced Realtor trying to work the NACA program?
So if you live in the DFW Metroplex and you don't have a Realtor contact me if you are serious about purchasing a home through NACA and I will be happy to meet with you for a consultation. If you are in another state other than Texas I will be happy to answer any questions to guide you in the right direction.
Happy Home Buying,
Alecia Smith, Realtor, ABR,TAHS,CHMS,CFR
William Davis Realty
8856 Coleman Blvd.
Frisco, TX 75034
"Everything I Touch Turns To SOLD!"
My business is based on Referrals!
We have spent months trying to get a loan from NACA. Our results have been:
-Spent about $100 faxing informtion to them.
-Bought them a piece of furniture as part of our volunteering.
-Taken time off for appointments.
-Paid membership fee.
-5 Unreturned phone calls. Still havent' heard back from them. The reception would say that the rep was in the office and free, but then my calls would go to voice mail.
-2 Telephone appoints. The rep did not call at all.
-Nasty looking office.
-Countless hours gathering all of the information that they want. Not like a tradtional loan.
I would not waste my time with NACA. I read the reviews. No company is perfect, but this is ridiculous.
The interest rate is what kept us going back. But we didn't get any results.
NACA was a waste of time for me!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!11
If you ask any of the officers to produce any documented results on the success vs failure ratio's of NACA's counseling they cannot produce a single shred of evidence. They have gotten in heated debates in several states because they cannot produce an iota of documentation to back up their claims. Every housing organization is able to produce live, verifiable data to back up their effectiveness. Everyone except NACA of course. Approximately 2 months ago, one of my clients informed me NACA had called to assure her they could still save her home. She hanged up the phone, because she had lost her home almost 3 years earlier. They are a complete joke.
Everyday, housing counselors have to be clearing up NACA's mess. I sat down once with a client and a NACA counselor in New Jersey for counseling. The client had traveled from Connecticut to New Jersey after an extended phone conversation with a NACA representative who assured her NACA could help. The NACA counselor used almost the entire session trying to convince the client she should go out to a Banking representative home to demonstrate with other NACA members the next day. When he finally realized she was firm about not going, he briefly glanced over the documents and informed her NACA could not help.
In my opinion, NACA is a waste.
We now own a 3 bedroom home in California, which is saying something since California is expensive and very competitive. Our counselor, Ron, was great through the process and always willing to answer my many questions.
Highly recommend the program for any home buyer. Just be forewarned: the process can take a while! Took us over 1 year from when we started the program to when we owned a home. About 5 of those months were going through the NACA qualifications. The amount of money they have saved us though far outweighs the time commitment. Just stay committed and stay on top of things. Give them information immediately when asked and don't drag your feet. Those with experience in real estate know how important timeliness is.
There is NO PMI and the monthly membership fee is now paid by the bank.
Just go to the NACA website at http://www.naca.com and sign up for a free Home Buyer's Workshop.
Just go to the NACA website at http://www.naca.com and sign up for a free Home Buyer's Workshop.
THEY ABSOLUTLY SUCK, if your the seller waiting for a buyer with a NACA LOAN. The buyer who bought my home is renting back the house I sold him because NACA hasn't finished the loan papers to the people he sold his house to. He was lucky I was able to move to my other house, and let him rent my house he is buying. To top it he had to pay another 800+ dollars to keep his interest rate.
Also the headache for me is paper work since I am renting to my buyer. More questions come up, who is responsible for break downs in my house. When it should have closed over 30 days ago.
I WILL NEVER SELL TO A PERSON USING A NACA LOAN.
And so you will upload all requested documents to your file before your first meeting. Only to have the counselor tell you that you need additional documents. But don't worry, he'll say, you'll be qualified in a week or two. As soon as you get home, you upload the documents. You figure you are ready to go. You email the counselor, telling him you've submitted all requested documents and asking him to submit your file to underwriting for approval. You get no response. You follow up. No response. Finally, after many emails, the counselor responds, saying that he is too busy to work on your file unless you are physically sitting before him watching him work. You must schedule an appointment.
The next appointment is not for two months. All the while, you are submitting updated documents as you've been told. You show up for your appointment, thinking that the counselor will finally submit your file as he said he would. After an hour of watching your counselor type on the computer, he hands you a list of additional documents you need and schedules you for another appointment. You ask if you can just upload the documents to your file and have him submit the file without you coming back for another appointment. In a roundabout polite way, you try to explain that you actually have a job and coming to the NACA office in the middle of the day isn't it. Fine, your counselor says, and he schedules you for a phone appointment next week.
On the day of your phone appointment you do not hear from your counselor. You call him multiple times but get voicemail. You then send numerous emails following up. Finally, he emails you back stating that you must come in and watch him work on your file. He schedules you for an appointment a month away.
Your appointment is the same as the last. You watch him work. But at the end, he tells you he will submit your file at the end of the week. Yes, finally! you think. You go home and look at homes on the internet. At the end of the week, you follow up and...nothing. You continue to write follow-up emails, straining to be polite. Then, a couple weeks later, you get an email stating that your counselor is no longer with NACA and that you must make an appointment with your new counselor. The next available appointment is a month away, smack in the middle of your work day.
You call out sick and go to meet your new counselor. After watching her type on the computer for an hour, she gives you a list of items that you need to submit. You explain that your first counselor did not ask for these items. You explain that your first counselor said he was submitting your file and quit/was fired right before he could. Your new counselor does not care. "We told you at the beginning this was a rigorous process, she says.
You wonder about the word "rigorous." The word suggests that you are somehow benefiting, growing stronger, from the "rigor" of the NACA process. It also suggests that you have some control over the situation. If you meet the challenge with the proper rigor, you will reach the top of the mountain. However, this whole NACA process has been completely out of your control. There was absolutely nothing you could have done to make things go more quickly, more smoothly. You have not benefited. Rather, you have suffered needlessly, wasting hours and hours of your life and risking your job by calling out sick for appointments.
It occurs to you that instead of wasting all this time with NACA, you could have taken a second or third job and by now made enough money for the down payment NACA was going to help you with. You might already have a house. But you are invested. You've spent countless hours trying to get qualified (only the first step in the process) and gosh darnit you're not going to give up now. You go home, and for the next three years of your life you upload every vaguely important document from your life to NACA's website.
for questions feel free to contact me http://www.urpro.net
The $50 fee that used to be charged to members is no longer charged and is actually paid by the participating lenders. However, when the $50 monthly fee was charged (which was for 10 years), that money went into a pool that would be used to help members pay their mortgage should they fall on any type of hardship that caused them to miss payments. So, if that plan wasn't 'pro-homeowner', I don't know what is. Also, attending events for 5 years is just a means of volunteering. A way to give back. After being able to get a mortgage with no money down, no closing costs and the ability to buy down the interest to practically 'zero'; 5 years of vounteer service at NACA events is a small price to pay.
First, they advertise that credit rate is not an issue. That is a LIE. You MUST have a credit score of over 700 to even be considered. Of course, you are admitted into the program with a low credit score but you will quickly find out that you have to FIX your credit before getting a loan. No different from a bank. You will be spending the next 12 months with a 'counselor' who knows jack about real estate.
NACA is TOTALLY INCOMPETENT.
They give bad advise, cannot answer a simple question and is notorious for losing files. Their computer programs is elementary and do not handle anything above 2+2. They are not compatible with any other programs and is frustrated to work with.
We started in the program May 2013 and is still being evaluated for a loan. We were approved by Quicken Loan when we changed and entered the program. If we had stayed with QL we would have been in our home by now.
In the final analysis, NACA is a waste of time, energy and monies. You have to pay for EVERYTHING except PMI and a 1% below market which is not worth the effort.
I say, go to a conventional loan company or a bank and work with them. You will be much happier. NACA's organization is inept; a bunch of idiots who get off feeling like they are 'helping the downtrodden,' but are really causing more and much frustration to people who are trying their best to get a home.
One of the biggest problem we had with NACA is that no one is accountable for anything. There is no boss or anyone to which you can complain. You only work with your totally STUPID counselor. No one else will talk to you. Everything goes through your counselor and no one else!!!
NACA is ran by a bunch of IDIOTS!!!
kawain payne, realtor