FHA Policy Changes
FHA Policy changes are right around the corner. The largest key change home buyers should be aware of is seller concessions. Beginning sometime this summer home buyers can only get up to 3% in seller concessions instead of 6%. This will dramatically change the cash requirements borrowers are accustomed to at closing. To view the other FHA changes click here.
Krishna Perkins, ABR
NACA
In todays mortgage climate many buyers who would normally be able to purchase a home have gone into hiding until the financing loosens up or the buyers can make the necessary changes to meet the new expectations. What many buyers don’t know is that their is an alternative.
I have sent many of my buyers through this program and I have seen some amazing results. NACA is a non profit organization making housing affordable to more Americans. They have attacked unfair lending practices in the past and continue to do so today in the refinancing of balloon mortgage notes. You don’t hear about them much unless the local news is covering them because of the non existance of advertising.
There are some pros and cons to working with NACA you need to be aware of. I’ll start with the pro’s first: #1 no credit score requirments #2 You can buy your interest rate all the way down to zero #3 The lender pays all closing cost, down payment and title policy. This results in a zero down home purchase. #4 You can use this loan for any home purchase up to 205K, new, used, reo, hud, etc.
Ok, now for the cons: #1 it’s a none profit so you need to keep your apointments, and stay on top of your paper work with them or you will get lost in the shuffle. #2 You have to attend a four hour work shop on a Saturday to get started. Many people get lazy on this and never go. #3 The program is not available in all states yet. You can view this info on the website. #4This really isn’t as bad as it sounds, but they require you to attend up to 5 events or refer to them 5 people a year. I do not believe they hard line this requirment but I believe the interest rate and terms are worth the effort for any buyer.
My recommendation for anyone considering this program is to have a Realtor refer you to the program. I do it all the time. If you go in alone without a realtor you will automatically have to work with one of their in house agents who is required to kick back 33% of the commission to NACA which leaves you with little to no wiggle room to negotiate other items important to you. Items you may need may include: lease buy out options, relocation fee reimbursment, appliances etc. If you’re unsure how this works let me know and I’m happy to explain requardless if you use me or not.
Merry Christmas and Happy New Year to all!!!
Krishna Perkins
