October 15, 2019 at 7:17 pm #61396
I’m favorly young. I first started with NACA 7/8/2018. I graduated school the end of April 2029. I started my first job after building up skill on 6/5/2018. Well then I recently moved and started a new job April 8,2019. I left my job before this on April 5,2019. So since I started working in June 2018 I have not had any work gaps. I know I’m the book it says we can move jobs because of income.
I revived a new counselor because I moved to a new place. This counselor is telling me I have to wait until April 2020 or June 2020 to be qualified. I already have my MRF of 4,500 as well as another 1,500 saved and I plan to removed my other 401k from my last job which would come out to 2,500.
She said I would only qualify for 1302 mortgage, I’m consider a priority member. I wish it was more but I done research and found great houses in that price range. Especially if I go with D R Horton.
With all that I have provided what I need to know is my counselor right with my education and me moving jobs I need to wait till April. Even though I have an employment history of 1 year end 4 months. Or could I go to the ADT event in Vegas next week and get qualified then and faster?
Any advice would be great, Thank you in advance.October 15, 2019 at 9:10 pm #61397
I meant to say graduated school April 29, 2019.
As well as I do have a my recent bank statement. I did go into the negative after NACA pulled it’s fund for member/credit report. But because I had a deposit hitting at 12am that night. My bank did not charge me an overdraft fee. But my statement was posted that night and does say I was in negative for a few hours. But I have an email from my bank that states they didn’t charge me an overdraft fee because of the deposit.
With theses factor will it allow me not to be qualified if I went to the ADT event in Vegas?
PS I live in NC. I do not want to go to the event if there isn’t at least an 85% preferably 95% I will qualify.October 15, 2019 at 10:21 pm #61398
You absolutely must have 2 years of consecutive work history and w2’s without gaps. This is a non negotiable requirement. You could have a million dollars in the bank and a 800 credit score and still have to wait until June 2020.
Your counselor is wrong about April. Unless you can show work history in April 2018 and May 2018. You have to wait until June 2020.
If you remove your 401k without putting it into your new 401k then that is taxable income so you may owe taxes in 2020 instead of getting a refund. You would need to take out a 401k loan which would count against your DTI and lower your monthly payment amount which you can only do with your current employer’s 401k which means you would have to transfer the money.
Naca doesn’t look at overdraft charges. They look at the account balance. It does not matter that the bank says they didn’t charge you. As long as your statement shows a negative number for even 1 second that will negatively impact you and start the clock over on having consecutive positive statements.
You will not qualify until June 2020 at the very earliest. Going to the atd event is a great way to get the ball rolling. You will just be given an action plan to keep saving and follow up with your counselor next summer.October 16, 2019 at 6:06 am #61404
Thank you for your respond. But the book also says if you have proof you were in school advancing your career they would take a year. I have my transcripts and degree. So me being in school should be a factor of me only having to have a year of work experience? Unless they aren’t doing that anymore.October 16, 2019 at 6:47 am #61405
I could be wrong but I think that is referring to gaps in work history and not total work history. Remember there are 3 requirements here. History, w2 and tax transcript. You need 2 years of each.
If you took a year off to go back school that wouldn’t hurt you and that’s what the book is referring to I believe. The key is stability. You cannot show stability without 2 years.October 16, 2019 at 9:01 am #61407Peapod0609Member
I believe Nelsont is correct regarding the two year employment thing as well as the bit about schooling.
You likely will not qualify until June of 2020. I would take that time to continue saving money. Take a look at your credit reports, see if anything is on there that needs to be addressed or take care of any other issues your MC wants you to take care of. That way, you are 100% ready to go in June and can get qualified ASAP.
I don’t think going to the ATD Event will help you in this case because of the 2 year employment requirement. Did you have an intake meeting with your counselor already? If not, schedule one. If you have, maybe schedule a follow up in February/March to confirm everything is on track.
The more time you have to save, the more money you will have for interest rate buy down, too. Which can allow you to increase your purchasing power, or lower your monthly payment.October 16, 2019 at 9:13 am #61408
My credit report is clean, my credit score is in the Good area. The little student loan I did have i have 3 more payments to make and I’m done with that. NACA only issue would be my education. I had my intake meeting in SC in 7/8/2019 and then when i moved another one 10/10/19. So I’ve had 2 meeting because this counselor just started over. I’ve had 2 actions plans, so my experience has been very long. But I will see my lease is up April, I was willing to Buy myself out of it. But if i Have to wait till June i looks like I will have to renew it and still buy myself out of it so I’m still in the same predicament. But not any of you guys issues. But thank you for all of your feedback from your experience. Its been enlightening and has made me make some big decision regarding my future in this program.
Thank you.October 16, 2019 at 10:21 am #61409
2 years of work history is not just a NACA requirement it’s a bank requirement. FHA is more lenient but, switching jobs is not always beneficial if you go that route because they want to see if you can keep a job for more than a year. Plus you will not reap the benefits of NACA. You will be required to pay PMI which is added into your PITI and thus reduces your buying power. You will also be required to pay a down payment and closing costs which may total around $10,000 cash or more.
To reiterate the school can only count for your 2 year history if you have work history prior to school. The ONLY way to have less than 2 years of work history is to go through FHA and hope you meet the qualifications to substitute school for work. Just keep doing what you’re doing. It sounds like you are on the right track.
Take a look at these articles.October 16, 2019 at 10:22 am #61410Peapod0609Member
Yeah, you will likely have to renew the lease, unfortunately. Even once you get qualified in June, I would estimate it will be 3-4 months at a minimum before you actually close on a home. So take that into consideration.
Good job getting those student loans paid off, that will up your DTI (Debt to Income) ratio even more. That, combined with saving some money for interest rate buy down should allow you to increase your affordability if you have to.
Keep saving money and you should have no issues!October 16, 2019 at 10:44 am #61411
Alright thank you all for your information. Honestly last year September I got approved by Navy Federal for a mortgage loan and another bank. Navy Federal I wouldn’t need a down payment. But i was looking for a lower interest rate. But i will stick with NACA a little longer and see. But i don’t think renewing my lease again is worth it. I would still have to pay $2640 to get out my lease and give them a 60 days in advance. So that is $5340 i would need to shell out in that 6 months span. All this information has given me alot of think about.October 16, 2019 at 11:49 am #61412
You were almost assuredly pre-approved. A pre-approval looks at your financial history and ability to pay a given mortgage. You will usually (99% of the time) not get an actual approval until you make an offer on a house, have a ratified contract and submit your loan application for that specific house. At that point people who got pre-approved sometimes are denied a loan including from NFCU for many reasons including work history. You can do what you want but, personally I think your best bet is to continue to save. It almost always works out for the better. You will have more money, less debt and will be able to find a better house.
Just keep in mind the more often your circumstances change the harder it will be to get a loan. This is includes moving every year or changing jobs. You will need to get rental verifications from everywhere you’ve lived recently which becomes more tedious with many moves. And the same for employment verification. Rental and employment verifications are 2 of the most likely requirements to cause delays because you often have call all of your landlords/leasing agents/employers and push them to fill out the forms.
April 4, 2021 at 6:45 am #74879RBJ619ParticipantApril 4, 2021 at 9:03 am #74881
- This reply was modified 2 years ago by Nelsont.
You need 24 months of employment so that would be everything in that time frame including residency employment tax info and whatever pops up on your credit report.
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