I have been searching for an answer to this question on Naca but could not find anything but general info.
Naca purchase book says there is a multi family reserve fund requirement but it doesn’t say how many months are needed.
I have heard rumors that :
You need 3 months of reserves for a 2family
4 months for a 3 family
And 6 for a 4 family.
But I have also gotten several different answers. Can someone please help me break this down. I am trying to be naca qualified before my appointment but I don’t know what I need to save ?
I also don’t want to burst your bubble but you will need the verification of employment and verification of rental forms filled out by your employer and your landlord and returned directly to naca from your employer and your landlord. You won’t get the forms until your intake as a federal guideline to help combat identity fraud.
This reply was modified 1 year, 3 months ago by Nelsont.
Here it is straight from our Policies and Procedures:
“Members must demonstrate they have the reserves saved prior to NACA Qualification to cover four months of mortgage payments for Members purchasing two-unit dwellings, five months for three-units and six months for four-units”.
This is very interesting. I’m hoping to be get qualified for a multi-unit in NJ. I’ve been working on an action plan for approval for a single family home, but will talk to my counselor about approval for a multi-family. My next appointment is in early September.
The handbook states that “Members must demonstrate they have the reserves saved prior to NACA Qualification to cover four months of mortgage payments for Members purchasing two-unit dwellings, five months for three-units and six months for four-units”
Is this referring to mortgage payments (principal) or PITI payments?
– Do the reserves go into Escrow?
– If yes, are they held there “just in case,” or will your mortgage be paid from those funds for the specific number of months?
– If no, how long do these funds need to remain in a checking account?