As of Monday, February 1, 2021 all NACA Members must have their 2020 W2’s and 1099’s submitted to their NACA files. By law, employers are required to have these in your hands by January 31st, and you should immediately submit them to your NACA file if you have not done so already. 2020 Tax returns must be submitted to your NACA file no later than May 17, 2021, the extended filing deadline for 2020 taxes. This means your 2020 tax return should be in your file no later than May 17th. Failure to comply will mean your file cannot move forward until the completed return has been submitted to your file. If you have completed your 2020 tax return and are simply waiting to file, please go ahead and send a signed copy of the return into your NACA file now. By the way, that means ALL pages of your tax return. All attached schedules, forms, etc. that you filed with your return must be submitted to your NACA file as well. Members who file a Form 4868 (Automatic Extension of Filing Deadline) will not be allowed to progress until their income tax return has been filed with the IRS and the return submitted to their file. The extension does not grant a waiver where your NACA file is concerned. Likewise, members who owe taxes this year must have that tax debt paid in full without exception before their file may continue to move forward. We’re a little closer to normal this year after last year’s confusion. Submit your W2 or 1099 as soon as you receive it, file on time and submit the signed return to your file ASAP (but by May 17 for certain), and have any taxes owed this year paid in full.

By TTrumble

Online Operations Team and Forum Administrator for NACA. Based in the NACA National Counseling Center in Charlotte, NC.

36 thoughts on “UPDATE: 2021 Tax Season Requirements for Your NACA File”
    1. I make approximately 75,000. Annually and am looking to purchase a home. My credit is not stellar do to no issue of mine. I live in the Jax. Fla area. Can I qualify for your program. I have paid off a home and had maintained great credit in the past.

      1. Hello Lucius Thompson,

        There is certainly nothing in what you have written that would stop you from using the NACA program. There are no minimum or maximum income levels required, and credit scores are not used. We will look at your payment history over the past 24 months, with a focus on the past 12 months. We concentrate on how you have paid the obligations that were within your control, and the mitigating factors on the things that were beyond your control.

        Please register for a NACA Home Buyer’s Workshop on our website at https://www.nacalynx.com/naca/webfile/member/event/eventWebinar.aspx?txtEvent=AZ . This will give you all the information you need and is the required first step in the NACA process.

        Tim Trumble
        Online Operations, NACA

  1. I can’t schedule an appointment on the achieve the dream event…it keep repeating add taxes and income

    1. Hello Lafondra Jones,

      This most likely means you have not uploaded your W2 or 1099 forms to your file yet. W2’s and 1099’s were due in your file no later than February 1st. Please submit these to your file and make sure your paystubs are up to date and you should be able to schedule an appointment for an ATD event online.

      If you are still having problems at that point, please call NACA member Services at 425-602-6222 for assistance.

      Tim Trumble
      Online Operations, NACA

  2. What if we are not registered to vote and because of our religious beliefs, we do not vote….would we still be able to qualify for your program?

    1. Hello Iris Stokes,

      Yes, you can still use the NACA program. We recognize that some religious groups reject politics. Please provide us if at all possible with some sort of documentation that you are members of a denomination or other religious group that does not vote as part of their doctrine. This way we can certify that your refusal to register is not simply to avoid possible jury duty or for other evasive purposes.

      Tim Trumble
      Online operations, NACA

  3. I have one lender condition left- Provide an inspection report completed by a licensed professional (appraisal subject to: Install hand railing rear exterior steps. Un board rear window).
    My closing per P and S is April 10 (Saturday). Do I have to request an extension? The seller agrees to make all repairs.

    1. Hello Candi,

      An extension is probably a good idea, especially if the seller hasn’t made the repairs yet. Repairs made by the seller must be completed and the final inspection completed and submitted before the Clear to Close can be given.

      Tim Trumble
      Online Operations, NACA

    1. Hello sbwill86,

      Excellent! People should not wait until the filing deadline (May 17) to submit their 2020 return. If you have completed your return for this year, please submit it ASAP.

      Also, W2’s and 1099’s had to be in the file by February 1st, so everyone should already have those in their file as well.

      Tim Trumble
      Online Operations, NACA

  4. What if I’m in a payment plan for my state taxes, will I not be a qualifiable candidate for Naca? I have to have my taxes paid in full if I owe to qualify for Naca?

    1. Hello Katerina V,

      Past Tax liens or tax debts can become “super liens” that may force a Member to sell the home they purchase unless the Member addresses and resolves the debt. The agreed payment plan must have been in place at least 12 months with a significant amount paid.

      For the previous year’s tax debt, the Member must provide proof of a repayment plan that has been in existence for at least six months with documented on-time payments. The most recent year’s income taxes must be verified as paid in full prior to NACA Qualification. They may not be added to a previous tax debt in a payment plan.

      Tim Trumble
      Online Operations, NACA

    1. Hello Tanayshua M Sterling,

      At this time, Achieve the Dream events have been suspended indefinitely. Please make sure all of your required documents have been uploaded to your NACA webfile. Once that is completed you will be able to schedule your intake appointment with your counselor.

      Tim Trumble
      Online Operations, NACA

  5. I am in the process of getting NACA qualified, but I have student loans in IBR. Why is my MC requesting that the $0 payments I approve for for the IBR needs to be changed to at least a minimum of $1? I am not comfortable recalculating something like this as it still impacts me outside of NACA.

    1. Hello Elle,

      A zero student loan payment is not acceptable because at some point during the 30 year life of your mortgage loan, you WILL start repaying that student loan. We must accommodate for that when calculating your maximum affordable mortgage payment. It is not necessary to actually start paying the loan now if you qualify for a zero payment, but we must know how much you would be paying IF you did not have the zero payment. The allows for you to be able to afford student loan repayments once they do start without it suddenly creating a hardship that could easily make your mortgage payment unaffordable and potentially put your home in danger.

      Tim Trumble
      Online Operations, NACA

  6. if i have already had my intake appointment and ready to find out the next steps to move forward with the process what would i need to do. Also is there any incentives for referring friends and family to Naca

    1. Hello Geramika Butler,

      If you had your Intake Session the counselor would have done one or the other. They would have given you a Action Plan and explained these are the items you will need before your file can be submitted. Or if there were no issues with your file it would have been submitted for Qualification.

      When referring family and friends to the program you will get credit for your volunteer / participation services. NACA does not give incentives.

      Veneka Quick,
      Online Operations, NACA

  7. Hello, if I was given the amount of 192.000.00 and the house i’m interested in is 250.000.00 can I buy down the interest to get this house.

    1. Hello ANISSA JORDAN,

      Yes, you may use the interst rate buy down feature to increase your affordability. If that is not enough however, you may also buy down the principle of the loan to reach the affordable mortgage amount.

      Tim Trumble
      Online Operations, NACA

  8. NACA has a requirement of participation in 5 events however, when I go to the website, I don’t see any events in my area that NACA is doing; I see a number of events in other states outside of CA. I participate in Voter Registration and Consumer information events with other organizations in my area. Do these count such as registering people to vote online and pre pandemic, in person, doing volunteer calls for campaigns that mobilize voters through Hubdialer and Voterize. I have not seen any NACA sponsored events in CA. Please verify that activities toward voting count as part of the participation pledge. The pandemic has altered activities that I had previously seen on your website. Can you send your reply to my email address as well as posting it on this FAQ website. Thank you. Maria BT

    1. Hello Maria BT,

      The requirement is not five events, it’s five acts of participation. As before, sharing your story of becoming a NACA homeowner at a (now online) Home Buyer’s Workshop or even on NACA’s American Dream Program counts as well. Referring a new member who completes the Home Buyer’s Workshop and receives their NACA ID number is considered an act of participation. Registering ten people to vote is an act of participation. Additionally with the creation of our NACA Action Committees (NACs), becoming a NACtivist and helping bring about positive change in your own neighborhood can also fulfill those participation requirements.

      Tim Trumble
      Online Operations, NACA

  9. Hello,
    Good evening,
    Whether I am a NACA home owner or on the road to becoming one, I wouldn’t feel the need to get incentives for either helping a friend to become a member or doing some volunteer work for NACA, “a non profit” itself.
    As I understand that NACA is there to help others and most particularly the vulnerable. Predatory lenders will always be there to prey upon others in this Country. I heard people who lost 1/3 of their paychecks through lenders, others lost their vehicles. Years ago, I used to help NACA by spending some times filing and answering phone calls. Now, I understand how frustrating it could be when NACA members are unable to reach a counselor by phone. If I can help in a virtual capacity, I will be glad to do so during my spare time. I would also feel contributing to the cause in both helping some capacity as well as my friends to becoming home owners.

    1. Hello PJM,

      Perhaps the best way you can contribute to NACA’s mission of economic justice is by becoming a “NACtivist” and forming a NACA Action Committee (NAC) in your neighborhood. NACA’s success is based on the active participation of our over two million members advocating for affordable homeownership and economic justice. You can register and learn more about creating a NAC at https://www.nacalynx.com/nac/nacSignup.aspx?keyID=AA&keyIDX=46F2095FAD34CE86EC125ACDA1A02002E76FC4CB

      Tim Trumble
      Online Operations, NACA

  10. Question?
    This is not my case, I just use it as an example.
    Because of job transfer,
    If I live and in ABC State and want to purchase in DEF State before moving, is it possible to do so through NACA?

    1. Hello PJM,

      It depends upon the reason why you want to make the move and your individual circumstances. In most cases, we are going to require that you move to the new location and find a temporary place to live while you get established there.

      If it is a lateral job transfer (the same job with the same company, just moved to a different city by your employer) it may be possible. The problem you are going to have even with that however is the requirement of the owner occupancy rule that you take possession of the property and move in immediately upon closing. Timing the closing on the new home to perfectly match the date of the job transfer is nearly impossible. So even in that case, it is much wiser to move to the new location first and get established before buying there.

      Tim Trumble
      Online Operations, NACA

  11. Hello Geramika Butler,

    If you had your Intake Session the counselor would have done one or the other. They would have given you a Action Plan and explained these are the items you will need before your file can be submitted. Or if there were no issues with your file it would have been submitted for Qualification.

    When referring family and friends to the program you will get credit for your volunteer / participation services. NACA does not give incentives.

    Veneka Quick,
    Online Operations, NACA

  12. What is the name of the IRS document that is required for loan qualification? I believe it’s this form: IRS Verification of Non-filing Letter(Form-4506T) that I found on irs.gov.
    Can you confirm that is the correct form to submit for this loan qualification requirement?
    I do not need to file taxes based on my income and IRS tax law. So I have been asked by my NACA counselor to produce a non-filing status form from the IRS and I want to make sure I’m sending her the correct document to fulfill this requirement.

    1. I would like to add I just realized I have do not have 4506-T form as that is actually the request for a copy of a tax return. What I do have is a letter from the IRS that states the following word for word:
      “Information About the Request We Received
      On July 20,2021, we received a request for verification of non-filing of a tax return. As of the date of this letter, we have no record of a processed tax return for the tax period listed above.”
      It then lists the tax period as : December 2020

      I believe I have the correct form to satisfy this requirement but would like confirmation. Thank you.

    1. Hello Monique Ibarrondo,

      NACA does not approve construction loans under any circumstance. Modular homes are possible as long as the home meets certain standards, which your counselor can go over with you.

      Tim Trumble
      Online Operations, NACA

  13. If I take out loan from my 401k ($3k) to pay some recent accrued debt. How long do I have to wait before I would qualify for NACA again?

    1. Hello Chica029,

      Most likely a month or two. Repayments to a 401k loan will be automatically made through payroll deduction rather that requiring you to make a specific payment each month. Therefore you will not have to wait to build a 12 month payment history and your counselor can move the payments into your debts category to factor it into your budget and affordability. It simply has to show up on your last thirty days of paystubs.

      Tim Trumble
      Online Operations, NACA

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.