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NACA is stressful.

NACA is unorganized.

NACA lacks customer service.

NACA is slow.

NACA puts a $25,000 LIEN on your house to ensure you occupy the property as long as you have the NACA loan.

NACA has many flaws, yet I still chose them and I will explain why.

Down payment:

FHA: 3.5% of the loan balance. So for example, if you are borrowing $250,000, your down payment will be $8,750 ($250,000 x 3.50% = $8,750).

NACA: 0.00% of the loan balance. So for example, if you are borrowing $250,000, your down payment will be $0.00 ($250,000 x 0.00% = $0.00).

PMI/MIP:

FHA: FHA requires a one-time upfront fee (1.75% of the loan) which is wrapped into the loan amount (not paid in cash). It insures lenders so they can approve loans at FHA's lenient standards. So for example, if you are borrowing $241,250 your one-time MIP premium will be $4,222 ($241,250 x 1.75% = $4,222 (rounding up)). In addition to the one-time upfront MIP premium FHA charges, you will have an ongoing monthly MIP. Mortgage Insurance Premium (MIP), is a type of insurance that protect lenders against loss in case the home buyer can't make the payment. The FHA MIP rate is 0.85% of the loan amount per year, but can vary from 0.45% to 1.05% per year depending on your loan amount and down payment. For our example, we will use the most common rate of 0.85%. If you are borrowing $241,250.00 your monthly MIP will be $173.00 every month, for the LIFE OF THE LOAN.

NACA: There are no one-time upfront or ongoing monthly PMI/MIP premiums.

Interest Rate:

Current FHA 30 Year Fixed from SunTrust: 4.500%

Current 30 Year Fixed from NACA: 4.375%

Let’s break the math down.

For a mortgage with FHA, we started off with a purchase amount of $250,000 but remember we need to pay down 3.5% and add in the upfront MIP. This will bring our loan amount to $245,472 ($250,000-$8,750+$4,222). Not including any escrow (taxes and insurance), the monthly mortgage payment would be $1418.00. $1243 in principal and interest and $173 in monthly MIP fees.

For a mortgage with NACA with a loan amount of $250,000.00, interest rate of 4.375%, NO PMI, you’re looking at $1,248.00 per month (not including taxes or insurance). Let’s say I started saving for a FHA loan and had a $8,750 available. That would be bring my NACA payment to $1,205 per month. Now let’s complicate it a bit. NACA allows you to buy down the rate 1% of the loan total for a 0.25% discount. Let’s take that $8,500 and buy down the rate. If 0.25% discount = $2500, $8,500 could buy me 3 discount points and bring my rate to 3.625%. With $7,500 of the $8,750.00 I could buy my rate down to 3.625% which would give me a monthly principal and interest payment of $1,100 vs. $1,418 with FHA. That’s a saving of $318 per month, $3,816 per year, which is $114,480 FOR 30 YEARS. You get my drift?

I have a love/hate relationship with NACA. I hate that their customer service stinks, I hate that they keep misplacing documents, I hate they are slow as heck working files and most importantly I HATE how they don’t take accountability for their actions. However, I am literally saving thousands of dollars for sticking it out with them so I don’t regret a second of the headache and stress they put me through.

BTW, I DID NOT get any volunteer credit to write this review and NACA never gave me the option to get volunteer credit to write a review. Really wondering where that information came from on this site.

Product or Service Mentioned: Naca Mortgage.

Reason of review: Problems with payment.

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Anonymous
#1550015
I appreciate your honesty. Nothing worth having is ever easy. There is a real enemy out there :) thank you again
Anonymous
#1493615

Beware the Charlotte, NC office... I've yet to meet anyone who is professional.

Rude, careless, impolite behavior is the norm for everyone, the manager, the realtor, the reception area and of course the so-called counselors. I witnessed a client's private information discussed in RECEPTION AREA.

The counselors are snide and impatient and they deliberately prolong the process. Please investigate the Charlotte, NC NACA office.

Anonymous
#1490911

This review was so informative. I appreciate you telling the truth about NACA.

Anonymous
#1472914

In reading your comment you act as if Naca did you a favor. I think everyone keeps forgetting one thing.

NACA is designed for low income, or challenged credit people. You do not see people with excellent credit and good income using this at all. Do you want to know why? Most people with Excellent Credit and a Down Payment Saved will simply get a conventional rate loan with also a low down payment.

Also guess what no PMI is needed when you have a down payment of 20%.So your argument of PMI is mute because FHA, USDA and other government back programs offer those who need help with the downpayment and therefore your PMI is included in your loan. Insurance and Taxes you can't escape from no matter what loan you have. There is absolutely no upside in NACA if you have the money and credit. Why you ask?

Simply put if you saved your money, worked on your credit by getting the average score over 720 you can simply go to any bank and get a very low rate, no PMI because you have saved the downpayment and here is the best part. No Lien on your Property. So you can rent it out, sell it or do whatever because it's yours. The best argument to make is to stay away from NACA and work on improving your credit and income and go conventional.

Besides why would you accept poor customer service and then turn around and say it was worth it. Something to think about

Anonymous
to Anonymous #1473081

Respectfully disagree with you. Both my husband and I had credit scores over 720, combined income shy of $150k, but did not have the 20% down.

We did have assets that we could've tapped into the get the 20% down, but we chose not to. Why dip into my nest egg when I don't have to?! I got a low interest rate, no down deposit and no closing cost with a good amount of money still in my savings because I DIDN'T HAVE TO USE IT. Money I can invest somewhere else or simple save for home repairs.Lastly, if you are advising there are banks they are giving good interest rates with a over 720 credit score and decent income please share the name of those banks and your experience so you can give people an alternative option.

Also let's address the people with low income or challenged credit. Where should they go for help? I'm all about dumping NACA, but what I will not support is deterring people from using NACA if it's their only shot at getting a home at the present.Want the lien off your house?

Refinance it! Simple.

Anonymous
to Responding to Anonymous #1473703

Can you explain more about the lien. You and your husband sound exactly like my husband and i although we are just under the 720.

How long do you intend to stay in your home? If you sell your home do you just pay the lien amount to NACA and keep the rest of the profit? Are you allowed to sell your home? And the refinance option- to get rid of the lien- would you do that through a conventional bank?

I wish I’d found this program sooner.

Our perfect homeof cause just popped on the market yesterday and will be gone today. Lol.

Anonymous
to Anonymous #1473751

Hey, the lien is a "silent lien" and is only called due if NACA finds out you rented the house vs. selling it.

I don't know how they find out, a little birdy told me the ONLY way NACA found out about any of them is because someone told on them.- I don't know how long we're going to stay in the home yet.- If you sell the home, you don't payoff the lien. The lien is only there to enforce the occupancy requirement.- Yes, you are allowed to sell the home.- Yes, If I refinanced the loan I would most likely go conventional. Hopefully we would have the 80% loan-to-value at that time and I wouldn't have to shove out any money.Go for it! Everyone seems to think this program is designed just for low income households, but it's not.

In fact, all the people I personally know that went through this program was grossing 100k or more per year and didn't spend YEARS in this program because we already had the savings, paid our bills on time and enough money to qualify. It's different when you have some credit issues, but if you have good credit I cannot foresee it taking YEARS to get through this program, but I also don't see you getting qualified within a month either!

I worked with some of the WORSE people at NACA and I was still able to get qualified and closed on a loan within 6 months.For other people that don't support NACA for various reasons, I'm not saying you're wrong about NACA, but before you post debating me about this program PLEASE also post where you found a loan with COMPARABLE terms so other people can know there are other options out there. I consistently see people posting how you can get better terms with other banks but I NEVER see someone post which bank gave them the loan and the details of the terms!

Anonymous
to Responding to Anonymous #1474254

Your only argument is that Naca has low rates and you are saying name a bank that has better rates. Please listen to yourself do you even know the purpose of NACA as it was founded?

It was founded and purposed for homeownership for people who had problems getting financed. And to improve homeownership in distressed neighborhoods. You are obviously not versed in home ownership outside of NACA. This tells me you probably never purchased a home before NACA.

Listen to the major players in regards to Personal Finance. Suzie Orman, Dave Ramsey etc if you called in their shows they will tell you to stay away from programs like this. Why you ask? Build your credit and save your downpayment that is exactly what they will tell you.

You obviously never heard of buy down points. You can do this with any type of conventional loans. Which means you can reduce your rate just as good and you don't see wealthy people or people who owned several homes in their lifetime not just one using NACA. Also your whole point of terrible customer service is exactly what I am saying.

Is their something wrong with someone using NACA?

That is their choice. But I will say if you follow simple principles you don't have to use NACA and you shouldn't.

Anonymous
to Anonymous #1474405

I already told you I didn't have issues with my credit score, I already told you we didn't have cash 20%, but it was available through other ways. I applied and was APPROVED for loans with SEVERAL banks with our EXCELLENT credit scores.

I know what interest rates they were offering, I know what their buy down CAPs were and I know how much they were charging me to BUY DOWN. The ONLY reason I mentioned FHA in my post was because most people that didn't go through NACA mentioned they went to FHA and I wanted to compare the 2 options, but THAT WASN'T MY CASE. I wouldn't dare touch a FHA loan and with my financial situation I didn't have to go the FHA route. I don't give a crap what Suzie Orman or Dave Ramsey says, sorry not sorry.

What I do know is I got a BELOW 2% interest RATE, with NO CLOSING COST, or DOWN DOWN DEPSOIT ***and*** ALLLLLLL THAT MONEY we saved to buy our house is STILL IN MY BANK ACCOUNT! Also, why does understanding why NACA was founded has to do with my loan?

You know what don't answer that because at this point I'm truly not interested in the answer.Listen, this is my last response to you as we're going to have to agree to disagree. As I mentioned, NACA has a lot of work to do with customer service and I don't agree with everything they do.The fact you can't provide people the help by proving names of lenders would good terms only tells me you're not here to help anybody, but to argue about NACA.

Anonymous
to Responding to Anonymous #1477138

just the mere fact that you are upset says must mean I got to you. Please listen to your whole argument again and simply do research.

What banks what rates, do the research!!!!!!!!!!! And listen to the rest of the complaints about Naca on this site. It's called Pissed Consumer for a reason. That is why your argument makes no sense you are defending the company that provides poor customer service!!!!

I could care less about you! It's called educating the public and that is why there are several posts on this site to do exactly what i have been saying. STAY AWAY FROM NACA! Do you want to know why.

So therefore there are no more disappointed, frustrated and angry consumers who go through that process and dont' get what they want or shortchanged on a mortgage amount. Have a blessed day!

Anonymous
to Anonymous #1503371

You say that like having 20 percent of a house loan is usual. And you pretend that most people have scores over 720.

I have a great job and pay but have neither.

Also you forgot to address the ability to buy down the interest rate though NACA. Its really no reason to get a regular loan

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