May 14, 2012 at 2:51 pm #504StruittParticipant
I live in St. Louis, MO and am aware of a few other programs that offer down payment assistance and/or other home buying assistance. In talking with several of the vendors, some of whom are long time personal friends, it seems that the NACA program does not lend itself to enabling its clients to use other programs in addition to the NACA program. That’s sad, since home buyers should be able to take full advantage of the state and local incentives for home buying.
When speaking to the other vendors, they comment that the NACA staff is nice, and they understand it’s not a staff issue but how the national product is packaged. I’m unsure of what, specifically, they mean by that. However, I am told that several nuances makes NACA difficult to engage and, therefore, difficult to take advantage of other state and local opportunities. Right now, a new home buyer can get between $3,000 and $3,500, depending on the area in which they purchase. The state offers an additional, forgiveable loan at 0% interest for up to 3% of the home value for closing costs. It is a diminishing loan that can be totally forgiven within 5 years, if the borrower lives in the home. I just don’t see why I should not be able to take advantage of both programs AND NACA, since they pull from different revenue streams. Without NACA, I could take advantage of the other two.
I’d like to know if anything can be done to enable the programs to work together so that a borrower can maximize the available opportunities?
Thanks!May 15, 2012 at 10:54 am #516TTrumbleMember
To be a little blunt, I’m afraid your friends have misled you.
NACA is fully able and in fact encourages our members to take advantage of any relevant down payment assistance programs so that those funds can be used to buy down the interest rate on the loan even lower than the already below-market fixed rate.
The references to “how the national product is packaged” and “several nuances makes NACA difficult to engage” are indeed vague criticism, and I’ll be happy to address any specifics. The NACA Mortgage Consultants are difficult to communicate with sometimes because of the extreme caseload each one carries, but that should in no way hinder your ability to work with coordinating programs.
You make reference to “the state offers an additional, forgivable loan at 0% interest for up to 3% of the home value for closing costs.” I’m sure it’s a great program, but the NACA program has NO CLOSING COSTS. They are absorbed by the lender. So why would you want to borrow money to pay for costs you aren’t going to incur?
Since programs do vary greatly from state to state and even city to city, your NACA Mortgage Consultant can advise you on which specific programs can be used in your area. The entire purpose of the NACA program is to maximize your opportunity to become a homeowner, and we do indeed work with all relevant programs to help you reach the goal of home ownership.
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