I can has propertee?
July 12, 2008 6:16 PM Subscribe
Tell me what you know about NACA, or their rehab division HAND. Anyone use them to purchase a new home? It seems too good to be true.
I went through the process to the point of pre-qualification. I didn't go forward because I was self-employed and uncertain about the future (smart on my part, in retrospect). The best part of the process is that they look at every single one of your bills and expenses and work out a TRUE assessment of what you can reasonably afford. I gather this is not what banks do.
I have a Buffalo friend who did buy his house through NACA and had a fine experience. My impression is, it's a longer process, but you'll be more knowledgeable and financially stable at the end, and less likely to default. By the way, every single home in Buffalo qualifies for this program, because our city is so at risk and we have so many absent landlords.
posted by Riverine at 12:41 PM on July 13, 2008
I have a Buffalo friend who did buy his house through NACA and had a fine experience. My impression is, it's a longer process, but you'll be more knowledgeable and financially stable at the end, and less likely to default. By the way, every single home in Buffalo qualifies for this program, because our city is so at risk and we have so many absent landlords.
posted by Riverine at 12:41 PM on July 13, 2008
Response by poster: I figure I can easily find a house where my mortgage, even with insurance and taxes, is as much as or less than my current rent. At their interest rate that would be about $60K assuming $100 a month each for insurance and taxes. So the "can I afford it" thing isn't a huge huge worry. I've actually got the cash on hand for the first year insurance, taxes, inspection, etc, too.
But, I have bad credit. Bad. And I have a pathetic tendency to pay things late. Not because I can't afford them, just because it'll be wednesday and I'll think "oh shit, the electric was due Monday!" Which has gotten much worse since I went on antidepressants (which is why I went off them. I lost all memory completely. It was scary.) So who knows. If I go for the meeting and they tell me "pay everything on time for a year and come back", well, that'll be incentive for me (and the roommate, who I am buying with), to make sure it happens.
I just feel like now is the time, since if I get a raise I will officially be no longer qualified for any of the hud grants for renovations.
And I know what you mean... I went through everything with countrywide, and still have the approval paperwork around somewhere... for a completely insane amount. This was, needless to say, before the housing kaboom. When I saw they were willing to give me five times what I make in a year I got scared and backed off. Smart move.
posted by Kellydamnit at 4:16 PM on July 13, 2008
But, I have bad credit. Bad. And I have a pathetic tendency to pay things late. Not because I can't afford them, just because it'll be wednesday and I'll think "oh shit, the electric was due Monday!" Which has gotten much worse since I went on antidepressants (which is why I went off them. I lost all memory completely. It was scary.) So who knows. If I go for the meeting and they tell me "pay everything on time for a year and come back", well, that'll be incentive for me (and the roommate, who I am buying with), to make sure it happens.
I just feel like now is the time, since if I get a raise I will officially be no longer qualified for any of the hud grants for renovations.
And I know what you mean... I went through everything with countrywide, and still have the approval paperwork around somewhere... for a completely insane amount. This was, needless to say, before the housing kaboom. When I saw they were willing to give me five times what I make in a year I got scared and backed off. Smart move.
posted by Kellydamnit at 4:16 PM on July 13, 2008
I don't know about this specific program, but a family member worked for them a few years back and they are a legitimate non-profit corporation whose mission is to increase home-ownership in low-income areas. The idea is that raising the ratio of owner-occupied homes to slumlord-owned homes in low-income neighborhoods will increase community investment and revitalize said neighborhoods. You can get a mortgage with them if you yourself are below a certain income level or if you're buying in a low-income neighborhood.
If you'd like, I can ask my family member about this program.
posted by lunasol at 10:37 AM on July 14, 2008
If you'd like, I can ask my family member about this program.
posted by lunasol at 10:37 AM on July 14, 2008
My husband and I are currently working with NACA and are a couple days away from qualification. There are no income requirements, so it won't hurt you to get a raise. They do have limits on how expensive a house you can buy, but the limits are fairly high. In my area (Raleigh/Durham, NC), the upper limit is around $200,000.
The process is, to be totally honest, a giant pain if you have not kept really great financial records. But we haven't really minded that, because it is beneficial for people in general to keep good records and look carefully at their budgets regardless of whether they are buying a home or not. They also require you to save money, and they are very strict about it, which is a good thing and has helped us to get into a pattern of effortless saving every month, which we NEVER did before.
You will be required to sign up for a workshop before you have an individual appointment, so I would go ahead and do that now. The workshop takes a couple of hours and is very, very informative, particularly for first-time home buyers who have no clue.
MeMail me if you want; I have plenty more information I can give you, but I am at work right now!
posted by feathermeat at 6:38 AM on July 15, 2008
The process is, to be totally honest, a giant pain if you have not kept really great financial records. But we haven't really minded that, because it is beneficial for people in general to keep good records and look carefully at their budgets regardless of whether they are buying a home or not. They also require you to save money, and they are very strict about it, which is a good thing and has helped us to get into a pattern of effortless saving every month, which we NEVER did before.
You will be required to sign up for a workshop before you have an individual appointment, so I would go ahead and do that now. The workshop takes a couple of hours and is very, very informative, particularly for first-time home buyers who have no clue.
MeMail me if you want; I have plenty more information I can give you, but I am at work right now!
posted by feathermeat at 6:38 AM on July 15, 2008
Response by poster: I know naca doesn't have income requirements, but HUD has a few grants for homeowners in the area I'll be buying for restoration since it's a distressed neighborhood and also on the historic register. Those grants, that I can get once I'm in a house, have an income cutoff.
I did the workshop already, we have our first meeting next month.
posted by Kellydamnit at 7:11 PM on July 17, 2008
I did the workshop already, we have our first meeting next month.
posted by Kellydamnit at 7:11 PM on July 17, 2008
Response by poster: In case anyone searching for NACA info stumbles upon this I thought I would post an update.
We've had two meetings so far, and all seems to be going well. My coborrower and I both have chapter 7s in our past (although mine is a year from dropping off my credit report) which means they may need more info than from the average person, but not bad. Stuff like "proof you paid your electric bill on time for six months" and so on. The big thing is "how much is your rent compared to a potential mortgage, and do you pay on time?" Since we're targeting a monthly payment equal or less than our rent (which is easy in Buffalo- rent's average for a midsized city, but actual property values are very low), and we always pay on time, we're golden there.
The second meeting was this past friday. We still need a bit more info (bankruptcy papers, we thought, was "discharge of debt certificate." they need full schedules), but he said worst case scenario we could be approved no more than six months after our next meeting, in a month. Which is good for me since moving in the winter sucks.
Since we're not looking for a higher mortgage than we pay now we don't need to show a savings pattern, and between our 401Ks we have the cash-on-hand for the incidentals at closing. (we're both under 30, so using the money isn't a huge worry for us. Honestly, mine's not even breaking even no matter how I juggle it anyways, so land may be a wiser investment in this economy anyways. If it wasn't for the tax break I'd be better off with sticking it in a plain old savings account.)
The one semi-complaint I have is they don't seem to try to inform people of grants they may qualify for. It's not their responsibility to, but given their message it would be a good thing to bring up. I'm more than capable of researching that on my own, but a lot of people might not even know they exist to look for them. I only do because of friends buying recently.
posted by Kellydamnit at 12:09 AM on September 14, 2008
We've had two meetings so far, and all seems to be going well. My coborrower and I both have chapter 7s in our past (although mine is a year from dropping off my credit report) which means they may need more info than from the average person, but not bad. Stuff like "proof you paid your electric bill on time for six months" and so on. The big thing is "how much is your rent compared to a potential mortgage, and do you pay on time?" Since we're targeting a monthly payment equal or less than our rent (which is easy in Buffalo- rent's average for a midsized city, but actual property values are very low), and we always pay on time, we're golden there.
The second meeting was this past friday. We still need a bit more info (bankruptcy papers, we thought, was "discharge of debt certificate." they need full schedules), but he said worst case scenario we could be approved no more than six months after our next meeting, in a month. Which is good for me since moving in the winter sucks.
Since we're not looking for a higher mortgage than we pay now we don't need to show a savings pattern, and between our 401Ks we have the cash-on-hand for the incidentals at closing. (we're both under 30, so using the money isn't a huge worry for us. Honestly, mine's not even breaking even no matter how I juggle it anyways, so land may be a wiser investment in this economy anyways. If it wasn't for the tax break I'd be better off with sticking it in a plain old savings account.)
The one semi-complaint I have is they don't seem to try to inform people of grants they may qualify for. It's not their responsibility to, but given their message it would be a good thing to bring up. I'm more than capable of researching that on my own, but a lot of people might not even know they exist to look for them. I only do because of friends buying recently.
posted by Kellydamnit at 12:09 AM on September 14, 2008
This thread is closed to new comments.
You may not qualify, and it may not be for you in the long run, but it's worth checking into.
posted by dhartung at 11:42 PM on July 12, 2008