IF I told you that there is a HOMEOWNERSHIP PROGRAM that will allow your buyers to purchase a home with:
- NO DOWNPAYMENT................................You would probably say: (NO BIGGIE...)
- NO CLOSING COSTS.................................You would probably say: (NO WAY!!!)
- NO CONVENTIONAL CREDIT.....................You would probably say: (NOW...You are just CRAZY...LOCO!)
- NO MORTGAGE INSURANCE......................You would probably say: (WHAT planet are you from?)
- NO KIDDING!!!.......................................You would probably say: (OKAY...I'M LISTENING!)
NOW that you are listening...LET ME ADD:
- 30 YEAR FIXED RATE
- A BELOW MARKET INTEREST RATE (CURRENTLY 5.625%)
- RATE CAN BE REDUCED TO ZERO!!!
YOU ARE ASKING...WHAT'S THE CATCH??? HONESTLY...THERE IS NO CATCH!!!
The Neighborhood Assistance Corporation of America ("NACA") is a non-profit, community advocacy and homeownership organization. NACA's primary goal is to build strong, healthy neighborhoods in urban and rural areas nationwide through affordable homeownership.
I first learned of NACA several years ago...through a client. This particular client had almost no credit, and he earned $12/hour. The very best loan option I could find for him was an FHA; however, he did not have enough money for the down payment. He learned about NACA through a friend who had just closed on his new home...at a 4% FIXED RATE!!! When my client told me about his friend's mortgage, I could not believe what he told me. My disbelief prompted me to investigate...IF FOR NO OTHER REASON THAN TO PROVE THAT IT WAS NOT TRUE!
My mom always taught me to admit when I am wrong. Folks...I WAS WRONG! NACA IS REAL! I have since helped many first time buyers to purchase their home using NACA to obtain their loan. Let me tell you about my first NACA clients.
Alejandro and Tana lived in a mobile home community. Their backyard was a parking lot. They dreamed of buying their own home with a huge yard for their children, but they had little credit. I referred them to NACA, and they were approved for a $140,000 mortgage. They knew exactly what kind of home they wanted, because they had been dreaming about it for eight years. Within days of being approved by NACA, they were under contract to purchase the home of their dreams. Eight weeks later...they were sitting at the closing table.
IF I had not witnessed it myself, I would not believe what I am about to tell you. Through NACA, they were able to obtain a 30 year fixed rate mortgage at less than 1%!!! TOO GOOD TO BE TRUE?? IT'S TRUE...I WAS THERE!
SO...WHY HAVE YOU NEVER HEARD ABOUT NACA BEFORE?
Although NACA is the best answer for many buyers...some REALTORS® are hesitant to recommend NACA to their clients. From my experience, the reasons for this vary from agent to agent. Some are simply unfamiliar with NACA and see it as 'too good to be true'. Other agents know that NACA is legitimate, but they feel that NACA's process is too lengthy. (In most cases, it takes 3-6 months to go through the approval process.) Quite a few agents have expressed to me that they are not willing to wait 6 months to get paid. I've also spoken with several agents who have worked with NACA and feel that the program requires too much work from the agent.
If I am completely honest, I agree that NACA is a NOT an easy program. Six months is a long time to wait for an approval, for both the buyer and the agent. AND...YES...NACA's stringent guidelines require much more effort on the part of both buyer and agent. I have closed many successful transactions with NACA, and all of them have been difficult. However...ALL OF THEM HAVE CLOSED! Furthermore, in every case, my clients have told me that the end result of having their own home was worth ALL OF THE WAITING AND HARD WORK. ALL of them have thanked me for recommending them to NACA and for sticking with them till the end.
NACA IS NOT FOR EVERY BUYER...BUT...IT WILL OPEN THE DOOR TO HOMEOWNERSHIP FOR MANY PEOPLE WHO MAY NOT OTHERWISE QUALIFY FOR A HOME.
**NACA is a program for FIRST TIME BUYERS ONLY. If your client owns a home, they MUST sell their home before they apply for a loan with NACA.
**NACA is NOT just for low-to-moderate income families. Anyone,who does not currently own a home, may apply for financing with NACA.
**NACA also offers refinancing. (See naca.com for details.)
For more information about NACA...visit their website at naca.com
Written and Posted by:
Elizabeth Nieves - Broker, REALTOR® - The Elizabeth Nieves Realty Group @ Keller Williams - www.ElizabethNieves.com