NACA: Best Kept Secret? 0 Down 0 Closing Costs 4.875% Fixed Rate Loans

There are other aspects to NACA that just the mortgage plan they offer. I’ve had a NACA loan for 2 years and the premise behind it is that if you live in the home that you own then the neighborhoods are better off. This, for the most part is true, and you have to abide by that principle in order to keep your deal. As for mortgaging additional rental properties, well, I’m not so sure if that really is forbidden or much less enforced. In these times all I think that the banks really want is for you to pay your mortgage. I only own one property located in Buffalo, NY though so attempt at your own risk. NACA is basically a broker for Citimortgage, who holds my mortgage.

I was skeptical in NACA at first and almost didn’t get into it, but my wife dragged me in by the ear. NACA wants to prepare you for the whole mortgage process mess and help you from getting ripped off. They’re the anti-subprime neighborhood watch guys. They want you to consider all aspects of the process and place you in a house that you can actually afford. They will look at your credit report not for your scores but for your debt. You will get a budget analysis and breakdown and given a loan range (or you will be rejected if you really can’t afford what you want). They prefer you actually do all this before you pick a house as it takes a while, plus at least one of you (Husband or Wife or both) will have to attend a buyer’s workshop. This is all legit. If you get a loan through them they may ask you to come to a meeting, or a protest as they do these things. None of this is compulsory but there are real purposes behind them, it’s not a bunch of people singing Kumbaya.

I attended one meeting and zero protests. This isn’t because I didn’t want to but is because I have screaming kids, constant overtime and I’m always working on the house I bought. The meeting I did attend was for the purpose of mortgage assistance to NACA members who are facing hardships. In other words, you just got canned and can’t pay your mortgage this month, or maybe next month too. This is where the Neighborhood Stabilization Fund comes in. NACA will temporarily pay your mortgage until you get back on your feet or head to bankruptcy court. This is one of the reasons you pay into it. But it goes to a vote by a panel of members which is presided over by a NACA agent. We gave two people money to pay their mortgage. One lost their job and the other was headed to bankruptcy due to reduced hours and ridiculous credit card rates. They want to help you stay in your home if things get tough. If you want to go to protests then Google “NACA protests” to see what they’re all about. Like I said, participation is not compulsory. NACA is also very professional and organized, at least in my experience. They make use of information technology better than most, and I’m an IT Nerd so I know what I’m talking about.

Another important aspect of the program that people don’t know about is the fact that you can get concessions from sellers (as you would in a standard mortgage). If you don’t know what a concession is then Google “mortgage concession” or “seller concession”. You can also have repairs done on the home you wish to purchase and have them rolled into the mortgaged amount. When you finally pick a house and have it inspected, you will probably find some problems if you’re trying to get a good deal. There are certain problems (roof, plumbing, electrical) that have to be accounted for before the house can be sold to you. NACA could care less about cosmetic problems, but say the house needs a roof and some gutters. The inspector will write it up and then you can get an estimate from the contractor on a price to fix it. The contractor must be registered with NACA, they have a long list of contractors in their network. If you have somebody specific in mind that is not registered with NACA then you can ask them to register on their website and get into the network before they can submit their estimate. Some contractors don’t want to do this as they don’t want to be bothered with the paperwork. It’s their loss. If you have multiple problems with the house you can either get multiple individual estimates or go through a general contractor that’s registered. I had several repairs done and the only issue I had was that it took them a couple months to pay these guys. This was during the final days of the mortgage boom though and they were cracking down and speeding up the process at that time so it’s probably faster now. I had $10,000.00 worth of repairs done on the house and now it is valued at $25,000.00 more that my mortgage. This is present day, after the housing bust.

The final aspect worth noting is that you can drastically reduce your interest rate with money down. When I closed on my property I took a seller’s concession for $5000.00 from the previous owner and used it to buy my interest rate down a point to 4.25% from 5.25%. If I had $25,000.00 to put down I could have bought it down to zero percent. This is a fact. Is this still possible now? I’m not sure but it probably is. Think about that for a minute. I could sell my current house and buy another one using NACA and use the profit to buy my interest rate to zero. I could also have major repairs done that would be included in the mortgaged amount. That would be nice right? Well, it was true when I closed on my house so it probably is still true today.

The NACA process can be a pain sometimes but it is definitely worth it in the end.

Does anyone know of a good agent in MD?

I would like more infromtion on your program and how can I apply. 

Hi! I was wondering if all of my charge offs would have to be paid in order to go through NACA. My husband's credit is good; however, my credit isn't. I'm afraid to start the process and end up with my credit being the hold up on us obtaining a home.

Good things come to those who wait.  I closed on my house and live in Georgia.  It was a ton of work on my end, but it was also a ton of work on the cousnelors end because there is onlhy one office in the entire state and only two counsleors.  So, the counselor asked em for several documents over and over again.  It was getting upsetting, but in the end I am saying it is truly worth it.  So, hang in there and hold tight because the day to close will coem by.

This is in response to Sarah R.:

NACA will run your credit, however, they do not look at your credit score.  Their big thing is payment history.  If you have charge offs you will have to explain them in writing (as you would with any mortgage company). From start to finish my process took me almost 6 months but it was worth it. Just be prepared---bring EVERYTHING they ask yo to bring to your first counselor's meeting and the process with start without a hitch.  I highly recommend NACA.