Is it possible to increase maximum loan amount for a certain city?

Home Forums Purchase Program Is it possible to increase maximum loan amount for a certain city?

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  • #748
    BeckySher
    Participant

    I am greatful that I have been NCAC approved after a long wait. We have been house hunting and eventually we stumbled on a lake community that we absolutely love. Since it’s a little bit further from the metro area, the price are more affordable and property tax are lower. However, we found out that the maximum purchase price could only be $200,160 in that county instead of $252,890 like in the metro area. The builders are only building homes starting at $215,000 and they plan to build 2,000 homes in that community. That totally shattered our dream. Literally, if I cross the freeway to the adjacent county, I will be in the “high price area” with similar prices of homes.

    Is there a way that NACA can approve me with a higher purchase price so that we can fulfill our America dream which we can afford?

    #773
    TTrumble
    Member

    Hello BeckySher,

    To get approval for a purchase price over the stated limit for a given area, it will have to be authorized by the National Director or CEO. You will need to contact your Mortgage Consultant to explain your situation and request a waiver of the area limit.

    Thanks!

    Tim Trumble
    Online Operations, NACA
    ttrumble@naca.com

    #74710
    superGeorgeMan
    Participant

    What is the cheapest home you can buy?

    #74730
    TTrumble
    Member

    Hello superGeorgeMan,

    There is no minimum purchase price in the NACA program. While certain types of homes are ineligible, such as single-wides, specialty homes like “tiny homes”, log cabins and so on, we place no minimum on the purchase price of eligible homes.

    This has been advantageous in certain cities that have seen huge declines in home values. I have seen cases where homes in very good, ready to move in condition have sold for $25,000 to $45,000 in certain markets. The problem is that the banks generally won’t issue a mortgage loan for under $50,000. This made the homes unreachable for many potential homeowners but low-hanging fruit for investors.

    In such cases, NACA’s policy of no minimum loan amount has helped rebuild neighborhoods in a way no other mortgage program can.

    Tim Trumble
    Online Operations, NACA

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