P&S Contract Payment Specs Updated per COVID-Times

Home Forums Purchase Program P&S Contract Payment Specs Updated per COVID-Times

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  • #70278
    semper_sperans
    Participant

    Hi Everyone,

    Can anyone share with me that a NACA loan is closing by this timeline (or if not, what timeline are you experiencing?):
    1. Buyer completes and submits mortgage loan application within seven days of signed contract date.
    2. Buyer obtains a written mortgage commitment within three days from mortgage loan application date.
    3. Buyer closes in 28 days.

    Also, is a NACA loan a “Conventional” loan? Or is it classified as something else?

    Thank you for sharing the knowledge!

    #70281
    Nelsont
    Member

    1. Buyer submits signed contract and then schedules a credit access meeting with their counselor. Credit access will be just like going through qualification again. Upon credit access approval buyer will sign and submit loan application. Credit access is completley up to the unique combination of the buyer and the seller. It is possible to be credit access approved within 1 week. It is more likely to take 2 to 3 weeks.

    2. Buyer receives written loan estimate with postmark within 3 days of bank’s receipt of loan application. This is the law. The mortgage commitment will not come until after underwriting and approval.

    3. Buyer typically closes in about 60 days. The workbook says 28 days. That used to be true. In reality naca completes their process within 28 days before bank of america starts which may take another 28 days.

    Naca does not provide loans. Naca provides counselling. Bank of america is contracted to provide conventional loans to approved and counselled naca members.

    #70283
    TTrumble
    Member

    Hello semper_sperans,

    What you are really asking here is if things are “business as usual”. And of course, NOTHING is business as usual these days.

    I’m not picking on you here @semper_sperans, but your question presented the opportunity to say something that has needed to be said for a while now. I have been shocked by the number of people who for some reason had the totally unrealistic notion that NACA would be completely unaffected by the pandemic just because we remained open, even though our entire nation has faced some level of shutdown.

    First, even under the best of circumstances, nearly one in four residential real estate transactions in the United States fails to close on time. Under the pandemic with its various lockdowns, stay at home orders and other restrictions, that number is obviously much higher.

    For instance, things came to a complete halt for several weeks in California after the lockdown was ordered. Appraisers literally could not get out to do appraisals, and wouldn’t have been able to get inside the home even if they were able to travel. This brought everything to a complete stop in California, and similar problems happened at various levels all across the country.

    Work at home situations for many people here and at BOA certainly haven’t helped, but we have been incredibly fortunate in that we have not had to endure a single furlough or layoff at NACA and have kept working while keeping our staff and members safe. Even so, we have still lost two staff members to the pandemic, and a lot of you know that the people who work at NACA are a very close-knit group regardless of being spread across the country, so everyone has felt those losses.

    While everyone at NACA is doing the everything possible to keep things going as smoothly and efficiently as possible, we’re not machines and nothing is normal right now for us just the same way as it is for everyone else. However, item 1 in your question (submitting the bank application) is still pretty much staying on track within a ten (not seven) day window.

    It has also amplified some problems that existed before the virus struck, such as the long turnaround times we had been seeing from Bank of America. The special department at BOA that handles NACA loans was already overwhelmed with the volume of applications they have been receiving from us, and they’ve had to endure and adapt the same way everyone else has. As such, it has been items 2 and (mainly) 3 that have suffered, though the issuance of the Loan Estimate is largely automatic and based on the figures in your NACA file the day it was submitted.

    Still, we are seeing some closings meet the 28 day contract-to-closing timeline even in the midst of all the insanity. But while we are still in this real-life episode of the Twilight Zone, one of the worst things any of us can do is to set specific deadlines of just about any sort.

    Anyone who has been in the Forum for a while or who has read through its history knows I always preach patience and persistence in the NACA process anyway. Nowadays it’s as much of a requirement as submitting your tax returns and pay stubs.

    The bottom line is that no timeline, no deadline and no target date anywhere is valid right now, and won’t be until we finally get a vaccine and we can get back to something similar to what we all consider normal life.

    Thank you @semper_sperans for letting me use your post as a chance to get on my soapbox for a minute. Oh, and by the way, NACA loans are absolutely Conventional loans.

    Tim Trumble
    Online Operations, NACA
    ttrumble@naca.com

    • This reply was modified 4 months, 3 weeks ago by TTrumble.
    #70299
    semper_sperans
    Participant

    TTrumble:
    To hear that anyone from NACA has passed due to COVID-19 is tough to hear.

    I am equally sorry for the loss and glad to hear that many in the NACA community have stayed safe. The needless death and intense hospitalization that continues is overwhelming. Without a doubt, my heart goes out to all those who have suffered.

    I apologize for the crass nature behind my original post. I can now see how my post even gaslights all those at NACA and BOA who are doing their best and working their tails off despite all that is happening.

    Thank you for the words

    #70300
    semper_sperans
    Participant

    @Nelsont Thank you for the reply, very helpful. May I ask how you have come to be so schooled on the NACA process?

    #70301
    Nelsont
    Member

    Sure. Naca was not my first home purchase. I had purchased 2 homes prior so I was already familiar with the home buying process and what would be expected of me in general. When I found out about naca I read up on it and had a relatively good idea of what to expect before I attended the workshop. I’ll admit I was skeptical even after the workshop and up until my first intake session. From there I treated the situation like I was a student and couldn’t just coast through the process. I was an active volunteer at workshops both speaking to my experience thus far and listening to others to soak up as much information as I could. Then of course I started paying attention to this forum which is a phenomenal resource to get information you might not otherwise be able to get.

    I will say there are plenty of members active on this forum who are very knowledgeable about the naca process. And many others who share their experiences without which many of us would be left in the dark. Every member has a unique set of circumstances which makes it impossible to hold a finite timeline for everyone. Just make sure you are an advocate for yourself and pay attention to what you read and what you hear. Naca is not for everyone. But If naca turns out to be the right path for you then you will get a house in due time.

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