NACA Real Estate Training - Eligible Transactions and Property Types Exam Higher Tier Graded A+

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Approved eligible transaction types - ANSWER New Construction, Foreclosure, Short sale and Existing Properties Approved eligible property types - ANSWER Single family, Town home, Condominium, Coope... rative, 2-4 multifamily home, Commercial mix use. Minimum Condominium Requirements - ANSWER Minimum 50% Owner Occupied or solid financials to meet future operating cost for the next 12 months HOA delinquency cannot exceed 10% Road Maintenance Agreement - when there are private roads within the community Requirements for 2-4 Multifamily Homes - ANSWER Must be primary residence - Live in one of the units Owner's unit vacant prior to close Contract must specify which unit will be empty 75% of the rent is used as income 3 to 6 Months reserves Landlord tenant training course certificate of completion. Leases - Copies of the leases for all current tenants Minimum $400 per month surplus Requirements for Manufactured/Modular Home - ANSWER Must be double or triple wide home (single wide homes are ineligible). Must be permanently affixed to real estate (land), All trailer hitch, wheels and axels removed. Secured, permanently affixed on a concrete slab or masonry foundation. Utilities and sewer lines must be hooked to permanent connections. The unit must have been constructed under the Federal Manufactured Home Construction and Safety Standards of June 15, 1976. The certificate of title must have been surrendered and the property must be taxed as real estate by all local taxing authorities. Ineligible Properties - ANSWER Log homes Lots Unique properties (such as earth homes, dome homes, earth/bermed homes, pyramid, straw, bale and so forth) Working farms and ranches Single wide mobile homes and Single resident occupancy (SRO or single room occupancy) Requirements for Commercial Mix-Use - ANSWER 50% Square footage or more dedicated residential. Meets zoning requirements Member does not need to be the owner and the operator of the business that will occupy the commercial space. Appraisal value of the property must be primarily residential The commercial portion of the rent will be calculated similar to a Multifamily units. Requirements for Purchase - Rehab - ANSWER The amount needed to rehab a property will be added into the loan (if the Member is qualified for the necessary amount) The property value will be looked at two ways: (1) "as-is" which is the property's value in the condition in which it is being sold; and (2) "subject-to" which is what the property will be worth after all repairs are made The loan amount, with rehab, can go up to 110% of the "subject-to" appraised value Renovations are completed after the Member closes on their home The funds are held in a Repair Escrow account at the lender and paid to the contractor once that portion of the repairs are completed and inspected If the Member is unable to live in the house because it needs significant renovation, s/he may not have to make a monthly mortgage payment for the first six months Requirements for Fannie Mae Property - ANSWER Make sure to add NACA required stipulations to sellers Residential Real Estate Purchase and Sales Contract. We must close with NACA approved title company at local NACA offices. Sellers contribution will be used towards buy down/loan discount points Make sure you select using Public Funds when submitting an offer, NACA has been added to their list of Public Funds. This may give your client an advantage when there are multiple offers Requirements for New Construction - ANSWER Must close with NACA approve settlement agents at NACA local office must be included in the sellers purchase contract. NACA will not be responsible for Per Diem due to delays in closing. Cannot add upgrades after executed loan application. Seller incentives can be used for interest rate buy-down Notify counselor to order the final appraisal 1004D completion certificate when the home is at least 95% complete. A minimum of 15 days are needed to close from once the home is 100% complete and seller provides the certificate of occupancy. Requirements for Short Sale - ANSWER NACA will not move forward with credit access approval without an updated approval letter from lien holder agreeing to the terms and conditions of the sale. Verify the date on the approval letter to ensure the date has not expired. Home inspection should not be completed until you receive the approval letter from the lien holder. Approved Co-op locations - ANSWER Eligible only in Connecticut, Florida, Maryland, Massachusetts, District of Columbia, New York, New Jersey and Illinois Minimum Requirements for Co-op - ANSWER New owners may be subject to board approval. Per policy, a down-payment may be required. Questionnaire must be filled out and evaluated by NACA before making an offer to purchase. The requirements for approval for Condominiums also apply Requirement for lease purchases - ANSWER Rent payments must be verified by cancelled checks and/or direct deposit online payments to landlord Down payment funds previously paid to the se [Show More]

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