Forum Replies Created
Congratulations! I feel your pain and relate to you (like most of us) as you go through the process. There surely are oppoortunities to improve with NACA and I am hoping leadership at NACA will make the experience as awesome as the program itself. Cheers and celebrations!!!
Thanks @Nelsont. I did not receive the email as I am not going through the process anymore. Can you please share the link to the post where Tim confirmed it?
Good info, thanks @nelsont! I rechecked the NACA website at https://www.naca.com/purchase/ and it still shows that non-priority members are limited to priority areas only (last bullet on ‘read criteria’ button:
Non-Priority Members can only purchase in a MSA’s Priority Area with loan and required repairs within the conforming loan limit.
Am I missing something?
That is good to know! the purchase price is limited to FHFA conforming loan limit or less? You mentioned on subtracting 70-100k from those numbers- what is that guidance? Also, where do I see an official confirmation on what you said on no more limitations effective May 1? The v20.1 of qualification handbook surely does not reflect that. What is the status on backlog with NACA? Is it still as horrible?
@arachnophile, I closed with NACA in 2017 on 15 year mortgage at awesome 0.0625% interest rate (down payment borne exclusively from the builder) and in 2020 on 30 year mortgage at 2% interest rate (had to move out of state for work, so sold my first house in 2019). I would close again with NACA as I also, like you, am savvy with money. As you can see from other responses that the process can be bumpy and my case was no different, especially with the second closing. I was pulling my hair off with delays of more than 4 months and almost losing the house. The realtor and the regional manager involved with this closing are no longer with NACA. The realtor for my first closing is also no longer with NACA. So, the bumpy part is felt not only by members but also by people who are working to further NACA’s mission. This calls for massive upgrade at upper level management (it has always been, as Bruce Marks know better that it is not the same NACA that he started decades ago). So, I agree that NACA needs to be transparent about accountability, etc. That is, they need to have the following information accessible to NACA members. This can be an eye opener to many working at/for NACA:
– weekly/monthly/quarterly report, with five categories of members (low/moderate/medium-below-median/medium-above-median/upper) since NACA’s start on:
– members who attended the workshop
– members who applied for qualification
– time interval in weeks between attending workshop and applying for qualification
– members who received qualification
– time interval in weeks between applying for and receiving qualification
– members whose bank application was submitted
– time interval in weeks between qualification and bank application
– members who closed on a house
– time interval in weeks between bank application and actual closing
– separate section for bank application that need renovation on the house and those not (making it 5 * 2 = 10 columns)
– number of change of hands or attrition of staff during a given application (to give a sense of how leaving of NACA employees affects the experience)
Such information will be an eye opener even for Bruce Marks, I am sure, as this would help him step back and reflect on the NACA he has dreamed of and the NACA that has evolved now that we see today.
Kudos to Bruce Marks and his team for building such an awesome program. Without NACA I would have hard time becoming a homeowner and would definitely not have a way to fund my retirement account (as I would’ve paid it in down payment and higher interest rates!) Thank you for all you do NACA and I look forward to seeing you grow and help more and more people towards equalizing neighborhoods!
Thanks @Nelsont. I am confused with the interest rates on NACA’s website. Is NACA now allowing non-priority members to buy in non-priority areas, except with a non-discounted interest rate (i.e., interest rate 1% higher than that is offered to priority members or those non-priority members who are purchasing in <80% median income areas)? or there are different interest rates offered for non-priority members purchasing in low/moderate tracks (<80% median) and those purchasing in medium tracks (but <100% income)?
Delays will be halved with efficient IT infrastructure! @ttrumble I can’t emphasize enough and you know it as well. Please convince Bruce to make this worthwhile investment. So many hours-days of both NACA members and employees go on the phone calls/following up on outdated information/correcting for glitches generated as a side product of inefficient IT. This is what I have experienced and so do many other NACA members as well as NACA employees. Also, to err is human. I still keep my stand on minimizing human intervention and make the process automated. I have been bitten multiple times and almost lost my house because of human errors.
@the4byrds – I hear you. Same story with me. Raleigh office is inefficient, contrary to the impression I received from @ttrumble and my real-estate agent (who already left NACA out of frustration from inefficiencies). The MC there are not supervised as the regional director is busy with the ATD events and Raleigh office keeps up with inefficient MCs there who get the pay while regional director multitasks while spreading himself thin and do the work on NACA members’ files without much attention to details. The CEO won’t respond even if you try. Whether you enjoy going over people’s head or not is irrelevant. My file was delayed by 4 months and I almost lost the house, and I had to pester everyone at every level enough that I apparently aversed everyone including arguably the friendliest @ttrumble (facepalm). Here is what I would recommend: call AND email relevant parties every 3 days (or more frequently if you see any updates). NACA closing department is the final authority and they feel proud telling you on phone that they are the final authority to close on your house and regional director/online operation coordinator/CEO won’t help.
Since apparently your bank application has not been filed, it is premature to call NACA closings by phone, but you can still try and ask for an advice. Definitely call member services and explain that you need to submit bank application. When they say contact your MC, request that the MC (who is regional director in your case, just like many Raleigh NACA members) is not available because of ATD and that you are happy to get some remote MC who can file your bank application. You should definitely call Raleigh NACA office and even go there in person depending on your availability/energy/persistence.
Since you are a priority member (as determined by the location of the property you want to buy), you can buy anywhere you want.
I do not understand the idea of ATD when there is months-long backlog of NACA members. I know I am definitely missing something, but from the NACA members’ point of view I find it less efficient to host ATD when there is tremendous opportunity to have a meaningful impact by serving NACA members who have been waiting for months already. @ttrumble can you provide some insights? Again, tremendous amount of man-hours can be saved just by giving facelift to the NACA IT infrastructure, which would cut down on hours of phone call waiting misery and hours of explanation by NACA employees which could have been given by simple automated notification. NACA needs to stop micromanaging and hire responsible and efficient people with a reliable IT framework that is responsive in real-time.
@the4byrds: who is your counselor?
FFIEC website is right, counsellor doesn’t matter. Many don’t know things they are supposed know and are getting paid for.
You have qualification letter. Just ask your MC to submit bank application (good luck with that). If that doesn’t work or work poorly, contact your regional (good luck with that). If that doesn’t work, contact NACA service department/closing department/@ttrumble/CEO (good luck with that). Finally pray. Personal experience with Raleigh office. In the end it worked out but any insights on why things did or didn’t work would help for advising others and future guidance.
@ttrumble I hope I am not breaking any forum guidance here.
In-house or outside, you have to do the search. In the era of Zillow and likes, I am just not sure how much value a realtor adds for a reasonably informed buyer/seller (which includes most of the buyers including first time buyers/sellers).
1. You can’t use realtor commission as that will go to NACA/realtor. This typically doesn’t have anything to do with incentives the builder is offering. Realtor commission is already accounted for in the cost.
2. I would read the fine print of the contract. If the contract says that there will be incentives for going with the preferred lender, you will receive those incentives by going through NACA (as preferred lender won’t be able to match the NACA deal and will default). However, if the contract says that there will be incentives will be provided ONLY IF listed lender is used, you might not get it. Talk to your realtor and sales person for further clarification.
3. I would maximize incentive amount during the negotiation and then put it in writing that this amount will go towards closing costs (I would much prefer using the incentive money for buydown versus getting upgrades/appliances, as the money you will save with lowered interest rate will be in the order of hundreds a month over the life of the loan!)
4. Incentives differ from house to house for the same builder in the same community. The inventory house that hasn’t sold for months (you might want to find out why) or the house that is immediately next to railroad tracks/electricity cable might be selling for cheaper than the rest of the houses (check the details and make sure it is a good fit for you/your lifestyle) and use these factors to maximize your incentives.
After two closings with NACA at awesome rates of 0.0625% and 2.0%, I attest that NACA is real and I would close my third house with NACA if I have to move again.
Is the process frustrating? Hell, yes.
Is it specific to NACA? Hell, no.
Can NACA be better? Hell, yes.
Can you close with NACA the way it is? Hell, yes.
Some specifics from experience: As @taco said, 3P. It is hard. At least for me at times. But it is worth it. I would also much prefer NACA addresses well-known system-wide issues that are slowing down NACA employees and turning away NACA members from closing or recommending to others.
@ttrumble Can you share NACA’s actions that ensure that members already in the pipeline for closing/homeownerships are not slowed down because of “all hands on deck” ATD events?