I have read forums however would like clarification as I am preparing to begin NACA journey. I have been living with a roommate last 3 years we are not related. I am not required to pay rent formally however I do regularly contribute to the household expenses. I have typically paid her in cash but over the past few months have paid electronically through Cashapp which can be shown and traced from my bank account.The amount I give varies between $500 or $1,000 monthly depending on if I buy groceries or babysit for her that month. In reading the forums it sounds like we should do a written lease with a set amt and/or she would sign a letter verifying the contributions. I should also plan to pay her in equal money orders($1,000) for next 6 months. In addition if the new rent is higher I need to also save the payment shock amt as well. Am I understanding all this correctly? I know there are many factors and timelines with NACA can be very long but im really hoping 3-6 months to closing but I fear this lack of rent will hinder me. I also have an office space ive rented for the past 2 years with great rental record, not sure if it would count since its business not residential. Appreciate any feedback.
Your understanding of what you need to do is pretty much spot-on. Get a written lease with a fixed monthly figure, pay by check or money order and get everything consistent and documented each month going forward. Payment shock will need to be saved each month without fail if your desired mortgage payment is more than the agreed-upon rent amount.
I’m afraid the business space won’t be of much help to you for the reason you noted. It’s a business expense, not a housing expense.
The lack of rental history will almost certainly be a setback for you, even with the Cashapp documentation since the amounts were inconsistent.
I’m sorry I can’t give you a more affirmative response.