NACA, what? NACA, who?

What’s What?

NACA stands for The Neighborhood Assistance Corporation of America. It is a non-profit HUD certified organization and has over 45 offices nationwide. When I went to their site to do research for this post…their mortgage loan rates are lower than Navy Federal’s (an infamous credit union in the DC area). I’ve known about NACA for years and have been telling anyone about it if the subject comes up. When I first heard about it, I immediately thought it was too good to be true until I learned how it worked, that it actually worked, saw with my own eyes the house purchased.

The too good to be true part(s):

No closing costs

No down payment costs

No points or fees

No income maximum or minimum

No perfect credit required

No Private Mortgage Insurance (PMI)

Yall?!

NACA’s Mission, Rates & Eligibility Requirements

Mission

“NACA’s mission is to provide affordable homeownership to low-to-moderate-income people and communities. Thus, access to NACA’s Best in America Mortgage is limited to low-to-moderate income people (“Priority Members”) and people purchasing in low-to-moderate income communities (“Priority Areas”).”

30-year & 15-year Terms + Eligibility Requirements

Current rates as of 2/12/2021 is 2.375% 30-year fixed APR and 1.875% 15-year fixed APR

NACA’s eligibility requirements consist of the following:

1. No member of the household can have an ownership interest in any other property at the time of closing,
2. Occupy the home over the life of the NACA mortgage,
3. Participate in five actions and activities a year and at least one prior to NACA Qualification and one prior to closing in achieving NACA’s overall mission of economic justice; and
4. Be willing to abide by NACA’s terms of membership, participation, and eligibility.

Okay, But How?!

Step 1 Attend A NACA Homebuyer Virtual Workshop

Step 2 Prepare Your Web-File for Your First Appointment With A NACA Counselor

Step 3 Fulfill Qualification Requirements For The NACA Mortgage

Step 4 Attend A NACA Purchase Workshop And Find A Home

Step 5 Complete your Credit Access and Submit the bank application

Step 6 Obtain lender approval and closing on your home

The ‘Too good to be true’ part

In my lengthy post detailing how to find down payment and closing costs assistance (in every state), I mentioned that if anything sounds too good to be true, it most likely isn’t. Notice how I didn’t use absolute terms because, never say never. I thought it was hilarious and even a lil endearing that the NACA organization addressed their own surrealism in a question on their FAQ page:

Features and Benefits

NACA offers two programs: Purchase program for homebuyers and Home-Save for homeowners.

You can choose from 6 property types when you’re in the house search phase: single family (includes townhomes), condominiums, mixed-use, multi-family, co-op, or purchase-rehabs.

Members can utilize a real estate agent of their choice, a NACA-referred real estate agent, or a NACA in-house real estate agent. The benefit of the last two is that they are more familiar with the NACA program and its guidelines, but it seems to be no pressure and up to the homebuyer.

The NACA timeline shows that a NACA loan can (or should in their words) close within 28 days of the executed purchase and sales contract if all program guidelines are strictly followed.

What are the Cons?

Everything isn’t for everybody, plus there are upfront economic requirements that must be met to even qualify for a NACA mortgage anyway. Since everyone and their finances are different, each buyer’s process through NACA’s purchase program will be different. With just about anything, do what works for you and make sure to do your due diligence (your Googles, read testimonials).

What’s Luxe

I think it is amazing what NACA is doing and continues to do even during a global pandemic. Their work continues to advocate for economic justice for low-to-moderate income people and communities.

Although I didn’t buy my property through the NACA purchase program, I recommend anyone even slightly interested in the home buying process to at least visit their website and/or sign up for one of their workshops, which are now virtual because of the pandemic.

To learn more about and/or to get started with NACA, find where to contact a local NACA office, sign up for a workshop, read their FAQs, visit their website.

Have you bought a home through NACA’s purchase program? Are you going through the process right now? Do you know anyone that has? Let me know in the comments below!