NACA UNDERWRITING CRITERIA UPDATED ACTUAL QUESTIONS AND CORRECT ANSWERS

NACA UNDERWRITING CRITERIA UPDATED ACTUAL
QUESTIONS AND CORRECT ANSWERS

Question:
1. Not Own Another Property (not an investor)
Answer:
No Household Member has ownership interest in a home (unless the goal is to sell before closing through
NACA, in which case it must be under contract for sale to a qualified buyer prior to mortgage submission
and sold prior to closing with NACA).

Question:
2. Not Own another property - How to Verify
Answer:
Review the credit report and tax returns for indications of previous or current home ownership.

Question:
3. Not Own Another Property - Legally Married Verification Requirements
Answer:
If a Member is still legally married, verify that the spouse does not own a property. Even if the Member
claims that they are separated, have the spouse agree to have their credit report pull to determine a property
ownership or provide a divorce decree.A separation agreement can be used to document eligibility if it
indicates if existence or non-existence of real estate property and if so who would be awarded the property.

Question:
4. Not Own Another Property - Spouse Verified
Answer:
Once it is verified that the spouse does not own a property, treat them as ex-household members and
council Members on state requirements to close on an absentee spouse

Question:
5. Not Own Another Property - Previous Homeownership Requirements
Answer:
The Member must provide an explanation for all previous homeownership that discusses what happened to
the property and the dates of ownership.

Question:
6. Not Own Another Property - Property Exemptions
Answer:
Owning a mobile home titled as a vehicle and not real estate; a lot with no improvements on it; a
timeshare; a property in another country where no rental income is being used for NACA Qualification;
and an inherited mortgage-free property.

Question:
7. Personal Data - Requirements

, Answer:
The personal information must be in NACA-Lynx for the following: applicant, co-applicant(s), all adult
members (21 years or older) of the household. Information on dependents needs to be provided even if
they are not listed on their tax returns as dependents

Question:
8. Personal Data - Dependents Not listed on tax return
Answer:
Member can address the discrepancy of all dependents not listed on a tax reutrn with a letter of explanation

Question:
9. Member Information requirements
Answer:
Input all information regarding name, address, date of birth, demographics and emergency contacts.
Emergency contacts must not be persons of the same household.

Question:
10. Member Information Verification
Answer:
Obtain Member identification and verify that their name, address, date of birth is who they say they are.
Using Valid Identification that meets Patriot Act Guidelines

Question:
11. Valid Identification Requirements
Answer:
Valid identification includes driver's license or other state, or government issued photo identification that
meets Patriot Act guidelines and shows the Member's current legal name, picture, date of birth, address and
expiration date. The identification must be validated and verified before pulling a credit report.

Question:
12. Member Identification Address Discrepancy requirements
Answer:
If the address on the ID is different from the current address, the Member can explain the reason and verify
the current address with either a bank statement or a utility bill which must be scanned into NACA-Lynx
with the letter of explanation and the picture ID. Otherwise, their identification must match their credit
report

Question:
13. Occupancy Requirement
Answer:
Members must commit to live in the property for as long as they have the mortgage obtained through
NACA.

Question:
14. Occupancy Requirement - Red Flags