I think when using any free service you should arm yourself with tools and get the facts you need before calling your lender or a free service, have your financials and hardship ready so that you can get in an affordable loan program thatâ€™s right for your budget.. Check out my loan modification eBook and get on my mortgage blog:
When they say no money down that doesn't mean you can just move in. You do have to pay for the appraisal(s), you do have to pay the deposit on the home of your choice to take it off the market and you have to pay the escrow in advance, but there is no closing costs. If you have saved money already then you get that back at closing because the people doing the closing have no idea that you don't pay that. The mortgage company they use which are either citigroup or bank of america have agreed to pay the closing costs. If you have the patience to go through with it I say go for it.
The percentage point on the website is not the local percentage for Chicago....that is considered the national average. For Chicago it is lower. That percentage point is what the national average is for all mortgages where NACA has its services and no it is not one percent below prime...I said that but that is not right....I meant to say that whatever the rate is here in Chicago then it will be 1% below that market rate. It is a really good program and if anyone is interested I suggest you contact NACA directly. Jeff if you said a couple of things that were incorrect and I suggest anyone who is interested should contact NACA. Also, the point of not allowing a line of credit etc is to protect the buyer....the percent of people who start having problems with paying their mortgage after a second mortgage or line of credit is unbelievable...If someone plans on taking a line of credit out on their property then this is not for you. I would run fast from any agent who said that it is still fine to do so in this market, but agents will tell you anything...so there is no acception to agent on this website. Also a lot of agents do not like to work with NACA because NACA is very harsh on what percentage buyers agents receive and will even tell agents to use part of it as a credit if the commission is absolutely ridiculous, but not in all circumstances such as the general 2.5 percent...that is why you should use a NACA agent....trust me I had a regular agent before (two) and they are not going to be for you like a NACA agent. I am a firm believer that agents are out there only to make money and some will argue with you about that until they are running out of breath, but of course that is how they make a living so who can blame them? Anyhow, only use a NACA agent:) Jeff it is funny how you call these assistance programs....you should brush up on the program...I am not sure what kind of "assistance program" they would fall under lol. Also if you have any doubt just call Bank of America or Citimortgage and they will reluctantly tell you that it is the best program and there is no devil in the mix etc, but it is your job to discourage!
Some facts all from the website: The condo limit for Chicago is $275,000, which is a big limitation in many Chicago areas. FHA/Fannie loan limit is $417,000.
Second, once you purchase you pay $50/month "membership fee" for between 5 and 10 years. That is equal to a quarter bump in the interest rate.
Third, it does not appear you can obtain a second loan (or line of credit) which many people need or want.
NACA puts a lien on your home and won't say for sure whether they would subordinate to any future 2nd lender.
Fourth, their published rate for yesterday is 6.5%- this is current market rate for FHA/Fannie for many lenders and NOT one percentage point below market. Paying a point lowers the rate a quarter just like any other loan out there, this is not unique to NACA.
Finally, they do have some great press, but if you google NACA you can read some not so cool real stories on various threads.
Hey, if it works for you I am happy but the devil is always in the details on these assistance programs.
I'd love for someone to tell me otherwise, I have clients that need these loans still?