June 12, 2018 at 9:32 pm #42448
I am located in Georgia, (Gwinnett county) and I went to a community that is building homes by DR Horton. While there, I asked if they had any incentives and mentioned NACA. They informed me that DR Horton does not allow NACA and has not since last year. I even asked if they allow funding from BOA and they said yes. I said the finance company is BOA for NACA and they said that they would not allow it because it has to go through NACA. Has anyone else had this experience? I kind of feel like it is fair housing/ discriminatory practices. If I have a loan approved, and can prove that I can pay for this home, then why not? I have read several peoples post saying that they built with DR Horton and now this community is saying that will not allow funding through NACA. Anyone have any insight?June 13, 2018 at 8:20 am #42457
This is what Tim said in response to this question.
You are correct that they cannot require you to use a specific lender. We have seen instances where the local office of a national builder has attempted to use this tactic in the past, and it has never been the national company’s policy. In fact it may possibly be a violation of federal Equal Housing Opportunity laws.
They get extra “incentives” when they use their “in-house” lender and are simply trying to make an extra buck at your expense.
If this is a national or regional builder, go over the local office and contact their national headquarters. If they are strictly a local builder, contact your state’s Attorney General.June 13, 2018 at 8:25 am #42458
I saw it suggested on other responses here. If you are NACA qualified already, bring a realtor with you. That way they hear whats going on and can escalate it. It definitely feels like discrimination to me. They depend on realtors to bring them business.June 13, 2018 at 8:31 am #42459
Also not trying to dump all this info on you but read this thread. http://forums.naca.com/?topic=builder-does-not-use-naca-financingJune 13, 2018 at 10:31 am #42461
It’s pretty clear that builders and sellers cannot require buyers to use specific lenders, but on numerous occasions we encountered sellers that didn’t want to accept our offer because of Naca and their poor reputation. Sellers want to be able to close and be done, and as a quick read of this forum will show NACA is notorious for not closing in a timely fashion. And realtors and sellers know that. Whenever we encountered that attitude, we just moved on to the next home. There’s a high likelihood that you will not close on time, so why go through the process of working with a seller that won’t extend your close date because they have a bias against NACA? It’s much easier to find someone with more flexibility and that’s open minded to the process.June 15, 2018 at 12:13 pm #42522
An absolute lie by the DR Horton rep. What is actually happening is that they know that with NACA they will be forced to give you all the incentives of using their “in-house” lender because their policy is that if their lender cannot match the terms of the buyer’s financing, they must give you the incentives anyway. And they are NEVER able to come close to matching the NACA terms.
Using their lender is a huge profit center for them and the local reps obviously make a bigger commission from getting you to use their lender. This is not the first time DR Horton reps have lied to NACA buyers about using NACA to buy a DR Horton home.
You need to go ahead and apply through their in-house source, than bring your NACA approval to them and insist that they match it or give you the incentives anyway. If they still resist, you’ll need to go over their heads to their corporate HQ.
The real expert on this topic is @pratik . He’s the guy that figured all this out and “wrote the book” on dealing with DR Horton. I know he will be happy to help you if you would like to reach out to him.
Online Operations, NACA
July 30, 2018 at 7:58 pm #43598
- This reply was modified 2 months ago by TTrumble.
– A DR Horton rep said that they will accept NACA only if a higher deposit is put down. They said that this came from the regional manager. Is that true?
– Will applying through their in-house lender affect my approval as it will be another inquiry on my credit report?July 30, 2018 at 10:35 pm #43607
I don’t know about the higher deposit but there have been posts here suggesting to apply through their preferred lender to be able to get the incentives through NACA later. Regarding the inquiry in your credit, you should be ok with a Letter of explanationJuly 31, 2018 at 3:11 pm #43634
Thanks @ttrumble for the mention – actually the helpful rep of DRHorton who helped me out deserves all the acknowledgement! A technical question: why am I not notified when I am mentioned in any of the threads? Fixing this would tremendously improve efficiency and timeliness of responses!
@devyah924 and @souldivine2u: ask the rep to put it in writing on the DR Horton paper with their signature and stamp. This will go long way in your favor and against them. In the mean time, sign whatever contract of their in-house lender. The contract would clearly state that they need to honor the competitive offer by matching it. If they fail to match it, you will be entitled for the perks you were eligible for going with the in-house lender.
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