January 27, 2021 at 5:28 pm #73978jhallasParticipant
Understood. What I’m questioning is why is it their policy as it makes no sense that I can fathom.January 27, 2021 at 6:08 pm #73979
I don’t know why a true down payment is not allowed.
What I know is one of nacas founding principles is that the ability to produce a down payment is what prevents the demographic that makes up the vast majority of membership from being able to buy a home.
If I were to take a guess I would say giving you the ability to do a true down payment would open up the potential for sellers trying to strong arm buyers by not accepting the terms without a certain amount down which is back to the founding principle of needing to come up with money when you might not be able to.
I think it would also fall into the category of double dipping. High income individuals are prevented from taking advantage of the system by limiting their purchase locations.
But I’m just guessing here. I understand it’s frustrating.February 1, 2021 at 4:09 am #74056grayfenixParticipant
Bump for attention. Would love someone with NACA to chime in or ask some questions to higher ups about when (if ever) the conforming loan limits will be made current, or just updated to a more recent non-current.
2 Year old conforming loan limits in a booming market is doing the opposite of empowering NACA members.February 2, 2021 at 1:44 pm #74074
Bumping this again: we need an update!February 2, 2021 at 6:06 pm #74080Joe Merriweather-WebbParticipant
I messaged NACA on Facebook and emailed Tim Trumble directly to try to get attention on this issue. Any more mediums people can think of to try to get a response?February 3, 2021 at 1:59 pm #74085
Twitter?February 7, 2021 at 12:53 am #74150grayfenixParticipant
bump for posterity,
and the hope of getting some badly needed information.
February 7, 2021 at 1:17 pm #74156February 7, 2021 at 2:32 pm #74160
- This reply was modified 7 months, 2 weeks ago by grayfenix.
I do not work for naca…February 7, 2021 at 4:07 pm #74162jhallasParticipant
Curious that @ttrumble has last activity listed on the forum at 2.5 weeks ago. Maybe he’s on vacation or sick?February 8, 2021 at 11:29 am #74168
sorry @nelsont You are such an excellent contributor to this board I mistakenly assumed you were a part of NACA. Thank you for all you do for the other members here.February 8, 2021 at 7:19 pm #74179BigJohn96uParticipant
@nelsont you seem like someone who has a good understanding of the back end of this stuff. What would you say are the odds that the unwillingness to increase to the new conforming limits is something on the lender side, and not specifically something NACA has a choice in?
It’s been a long time since I worked in the industry, but I do remember each lender had their own requirements, and the NACA program is unique as far as I can tell. Since they are not actually “conforming” loans, that is the one reason that logically fits for why they wouldn’t do this. As has been pointed out before, it’s not an issue of affordability, because there is no restriction on your total payment amount. If there was a house that cost $500k but had a $3k/mo HOA payment (to give a very extreme example) a non-priority member would not be precluded from purchasing that house provided they could qualify with their income. However, a $750k house with no HOA is currently unavailable to anyone using NACA, even though the monthly payment on that house would be cheaper than the $500k with the $3k.mo HOA.
So it’s either something like that, where the lender is setting an artificial cap on what they are choosing to approve based on their ability to sell based on the appetite of the secondary markets, or it’s something that NACA itself is choosing to do for reasons that I don’t want to speculate about here.February 8, 2021 at 7:30 pm #74180
@bigjohn96u I was told by my MC that it was something NACA had imposed as they are allowed to set the limits because they are a private organization. With that being said, I don’t understand why they are doing this to their members especially now.February 8, 2021 at 7:36 pm #74181
I’m pretty clueless on this one just like everyone else.
I do however think it’s with naca and not the bank. The non conforming loan limit is a government regulation determined by the federal housing finance agency (fhfa), the agency that governs what banks can and cannot do. Banks don’t get to choose. Once the numbers are updated that’s the rule the bank follows. If a bank elected not to follow that rule the government would sanction the bank for trying to pass a conforming loan as a jumbo loan (predatory lending?).
If I were to guess it has something to do with the makeup of naca membership or maybe HUD guidelines???? I’m just going out on a limb here regardless of income as the loan limits increase so does the potential to attract buyers who don’t benefit from naca as much as those who actually require naca or a similar program to even think about buying a house. If this is in the ballpark then you can imagine naca being short staffed with record membership since 2019 they could be focusing on members who need naca as opposed to those who want naca.
?♂️ naca is supposed to be inclusive so that might not be the case. But from a business/mission statement perspective I can see why circling the wagons might occur.February 10, 2021 at 7:22 pm #74212
Bumping again for some new information!
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