December 9, 2020 at 11:06 am #72933
Good morning Everyone,
On Saturday, I will be officially beginning the NACA process by attending the Homebuyer Workshop, but I’m a little worried. I’m on telework due to COVID at the moment, but I really want to get a home near my job before I’m called back in to work in person. To make things a bit quicker on my end, I thought it would be best to prepare as well as I can. Can any of you answer the following questions?
1) If I moved out of my apartment in September (due to high COVID rates in the area) and moved into a family member’s house, but my financial situation remains the same, will my previous rent be considered in the NACA process or will the monthly contribution to my family ($200) be considered instead? Also, would it help to complete a budget form for a month in which I lived at my apartment?
2) On December 30th, I will have worked at my 9-5 job for one full year. Will this be an issue?
3) I currently have a business bank account, but I am not using it to qualify (or claiming this as income). Additionally, it is completely independent from my personal accounts, and frankly, it hasn’t been active in months and has never generated income. My business is not at that stage yet, so it’s simply holding the money needed for product development. Do I need to include bank statements for this account?
4) How long is it taking (on average) to get an MC after the Homebuyer Workshop or to attend an ATD event?
5) Are there any other documents you would suggest uploading that are not in the workbook? Which documents need a wet signature?
6) Any advice for getting qualified same-day at an ATD event?
I apologize if this is a lot!
– BrookeDecember 9, 2020 at 12:05 pm #72934NelsontMember
1. All you will need is a letter from you family signed and dated explaining you live with them and whether you contribute to the household expenses. It does not matter if you do or do not they just want to match up your spending to your bank account. Your monthly contribution of 200 will be considered as your “rent” though you will be able to use your previous actual rent as history. Just make sure you do not give your family cash. Pay by check or online transfers that have transaction histories similar to bank statements. If you pay by cash you will essentially have no rent paper trail and your payment shock will be the full amount you qualify for PLUS because it’s over $100 (federal regulation) you will be required to write a letter explanation for every month.
2. It may or may not. You need 24 consecutive months of employment without a gap of more than 30 days. It doesn’t matter if you had 3 jobs in the last 2 years or 1 it’s whether you were gainfully employed. So if you left one job and started the next within a few weeks you’re fine. If you have no history prior to December 30, 2019 or you had a long gap then you will need to wait an addition 12 months.
3. Gather the documents just in case. Better to be over prepared.
4. Everybody is unique. There is no timeframe. Especially now it depends more on how many people in your area want to use naca than how well you have everything put together. 2 months after the workshop is a good estimate to get an appointment and 2 to 4 months from then is a good estimate to get qualified if you have everything put together already. Definitely sign up for an ATD. Even after the workshop. You can meet with counsellors and underwriters right away and skip straight to part you are at and cut a couple months off the process.
5. Nothing needs a wet signature until you go to buy a house. At this point if it’s a bill or legal document and you have your name on it have it ready.
6. Have everything dated up to the day including bank transactions.
7. Good luck!December 9, 2020 at 12:26 pm #72935
Thank you for your response!
I have two follow-up questions:
1) I have been paying rent to my parents through cashapp for the previous months per their request. I can begin paying through the methods described, but these will still be documented this way. Is this okay, to proceed as recommended (online transfer), and will the previous months be counted?
2) I have been working for 24 months; however, there was a two month period after I graduated from graduate school in which I was unemployed. This was because my previous government position was only open to students, and given that I had graduated (graduation: May 20, 2019; last day on the job: May 21, 2019), I was no longer able to stay in that position. The gap would have been much shorter, but the organization in which I was given a position had a strict date in which I could begin (start date: July 22, 2019). Will I need to work an additional 12 months?December 9, 2020 at 2:53 pm #72937
For more context on employment, I was actively searching for a job during the employment gap, completed many job interviews, worked with staffing agencies, etc., and then in June, I was told by a staffing agency that there was a position for me. I interviewed, I got the job, and got in paperwork needed (and experienced some delays in getting the required paperwork). I was told that I had to wait additional weeks so that I can start at the beginning of a pay period, so technically, I knew where I would be working in June, but I didn’t officially begin until July. I have documentation of everything discussed. Will this suffice?
Can this employment gap be justified?December 9, 2020 at 3:36 pm #72941NelsontMember
If you pay anyone for anything over $100 the preferred method is through a bank. That could be check, wire transfer, Zelle, Paypal etc. Cashapp is OK if necessary though not recommended. It needs to be fully traceable and have a recorded history (government requirement).
If you can get documentation, namely a letter, that proves you were hired within 30 days but started after 30 days you should be fine.
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