Can I use my own realtor with NACA?

Buying a home through the NACA (Neighborhood Assistance Corporation of America) program? You might wonder, “Can I use my own realtor with NACA?” To know the answer to this question, the first step is to understand how the NACA process works and how you can avail the facility.

What’s the NACA program?

NACA is an interesting home-buying program designed to make homeownership possible for low- and moderate-income individuals. That is to say, it helps people who might not otherwise be able to afford a home. Or, those who may not qualify for traditional mortgages. Or, those who want to avoid the typical upfront costs of buying a home. 

The program’s highlight is that it has no down payment, closing costs, and fee structure. What’s more, you can expect below-market interest rates. 

Another good feature of NACA is that its support doesn’t end after you buy your home. They offer post-purchase counseling. The idea is to help you manage your mortgage payments better. This ongoing support is to help you stay in your home long-term.

The program is, without a doubt, a game-changer for many home buyers. 

However, navigating the NACA process can be a bit different from the traditional home-buying process. Therefore, it’s essential to understand how it works.

How can I qualify for the NACA program for buying a house?

Here are the steps you need to follow for your NACA qualification. 

Attend a NACA workshop

Start by signing up for a free NACA Homebuyer Workshop. This requirement is a must. It will give you all the basics of how the program works and what to expect.

Meet with your NACA counselor

After the workshop, you’ll be paired with a NACA counselor. They’ll evaluate your financial situation by checking your income, expenses, total savings, and debt. You’ll need to bring in documents such as your pay stubs, bank statements, and tax returns.

Think about a housebuying budget and save money

Your counselor will help you set up a budget to show how you can handle a home mortgage. If your future mortgage payment is going to be higher than your current rent, you’ll need to start saving that difference each month. This is called “payment shock” savings. It goes to prove that you can afford the higher payment.

Build a good payment history

NACA doesn’t take into account your credit score. However, they do want to see that you’re responsible about your money. This means you need to have a solid history of paying your rent and bills on time. Don’t worry if you’ve had some slip-ups in the past; they’ll work with you to get things back on track.

Get NACA qualified

Once you’ve met all the requirements, you’ll get a NACA qualification letter. This letter tells you the maximum mortgage amount you’re approved for. Now, you can start looking for your house with NACA.

Can I use my own realtor, with NACA?

Yes, you can use your own realtor with NACA, but there are some things to consider. First off, NACA has its own in-house agents who are familiar with the program’s ins and outs. These agents know the NACA process like the back of their hand and are trained to guide NACA members through it smoothly.

If you decide to stick with your own realtor, they need to be prepared to work within the NACA framework. This includes attending a NACA purchase workshop and understanding that the NACA program does not allow real estate agents to charge fees to the buyer. 

So, if your realtor is used to charging fees or taking a percentage of the sales transactions, they’ll need to adjust their expectations when working with NACA members.

What will be your realtor’s role in the NACA process?

Your realtor can help you with the housing search, negotiating with listing agents and making sure you’re getting the best deal possible. However, they’ll need to coordinate closely with your NACA counselor to ensure everything is aligned with the NACA qualification and home-buying process.

One thing to note is that using your own realtor with NACA doesn’t reduce any fees you might pay overall. The fee structure in the NACA program is already built to be as affordable as possible, so having your realtor won’t necessarily save you money on fees. But having someone in your corner who knows your preferences and has experience in the local market can be invaluable.

What should you keep in mind when buying a house through NACA?

If you’re set on using your own realtor, here’s what you should do:

• Discuss the NACA program with your realtor. Make sure your realtor fully understands how the NACA program works, including its restrictions on charging fees.
• Keep a representation agreement in place. It will clarify the terms of your realtor’s involvement in the NACA process.
• Coordinate with your NACA counselor. Your realtor should be in close contact with your NACA counselor to ensure that everything is progressing smoothly and that all NACA requirements are being met.
• Make sure both you and your realtor are up to speed on the NACA process by attending a NACA purchase workshop together.

What are the benefits of using a NACA house agent?

While using your own realtor is an option, there are benefits to going with a NACA agent. These agents are deeply familiar with NACA and can often expedite the steps needed to get you qualified and ready for the housing market. Moreover, they don’t charge extra fees, and they know exactly what’s needed to keep everything on track.

Last thoughts 

Using your realtor with NACA is possible, but it requires some extra coordination and understanding of how the NACA program operates. Whether you choose to go with your real estate agent or a NACA in-house agent, the key is ensuring that everyone is on the same page and ready to help you through the NACA qualification process. Once you’ve got that squared away, you’ll be well on your way to finding a home you can afford.

Written by Ramona Sinha. October 29, 2024

Ramona is the Senior Content Writer for Kukun. This experienced blogger uses simple and succinct words to decipher the complex phenomenon called life. She has written articles covering a broad range of topics, such as real estate, lending and mortgage, finance, business, taxation, home designs, home improvement projects, decor concepts, and more. An avid traveler, she’s a digital nomad at heart and an animal lover from the depth of her soul.