Selling then returning to NACA

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  • #28321
    D80farrow
    Member

    We’d like to sell our current home which was purchased through NACA 5 years ago….then purchase a new home going back through the program but using the HAND program this time around.

    Is this scenario possible?

    #28333
    kmjatl
    Participant

    I think it’s only possible if there is a 3 year gap in between owning homes.

    #28336
    zboot
    Participant

    Yes. You’d be able to wait a bit less, 2.75 years (from date of sale). The 3 year requirement (to be a “first time home owner”) ends on the date of purchase. So if you anticipate 3 months getting through qualification, finding a home, and closing, that would work out to meet the requirement.

    #28337
    D80farrow
    Member

    So, once we sell our current home we have to rent for about 3 years before we can actually buy again?
    I definitely don’t want to rent.
    That’s disappointing. Thanks

    #28347
    TTrumble
    Member

    Hello D80farrow,

    Neither kmjatl or zboot are correct. You can use the NACA program again now.

    Once you buy a home through NACA, you may not use the program again to buy a home for at least three years. So if you bought a home using NACA five years ago, you are already eligible to use NACA again. You will have to have the present house sold before you can close on the new home, but you can begin the NACA process again any time three years after closing on the previous home.

    Tim Trumble
    Online Operations, NACA
    ttrumble@naca.com

    #28363
    zboot
    Participant

    I’m sorry for the error. I should have read the eligibility criteria a bit better:

    https://www.naca.com/nacaweb/purchase/eligibilityIntro.aspx

    Here’s the relevant section for others with similar questions:

    No member of the household can have an ownership interest in any other property
    NACA focuses on people who have not been able to purchase a home. The program, however, is not limited to first-time homebuyers; you may participate as long as you do not own another home at the time of purchase. Current NACA homeowners must have lived in their home for at least three years and have been active participants in the NACA program to be eligible to purchase through the program again.

    So, if you’ve been in your NACA home for at least three years, you would be eligible to sell and purchase another home through NACA.

    #28370
    kmjatl
    Participant

    How much of a gap does there have to be between the sale and the purchase? Can it be as soon as close the sale in the morning, close the purchase in the afternoon?

    So if you’re going through the program for the second time, is the process a little more streamlined? After all, you (should) have a good to perfect payment record with the lender… 🙂

    #28378
    TTrumble
    Member

    Hello kmjatl,

    In theory, they could be same day. In the real world, you are probably looking at a minimum of about a week in between the two transactions just because of Document preparation and handing, etc.

    You essentially answered your own question regarding using NACA a second time. Again, you should be theoretically in better shape having gone through the process before and having learned from it. In the real world though, some people never learn from their experience. So the real question is “did you learn how to best manage your money the first time around so that it will be easier for you this time?”

    Whether it’s the first, second, third or tenth time, the biggest determining factor in how smoothly the process goes is the individual member.

    Tim trumble
    Online Operations, NACA
    ttrumble@naca.com

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