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I am always attending conferences and meetings to gather information that I can share with my Savvy readers. This article will be no exception. For those of you that are in the market to purchase your first home I have some research that I want to share with you. In my region, I have not seen any commercials on this organization called NACA as it relates to new home purchases. I only heard of them when it relates to assisting people that are trying to save their homes. Anyhow, I found out about the company from a person that spent years in the home mortgage industry. It is kind of like In N Out’s secret menu. Everyone does not know about it and you have to be in the “know” to find out about it. I am going to keep it Savvy and share what I found out with you readers.
NACA stands for Neighborhood Assistance Corporation of America. They believe in providing people with the steps to home ownership and they basically hold your hand while you go through the process. A lot of you may have seen NACA on the news years ago trying to help people stop home foreclosures. Helping you purchase a home is another service that NACA offers.
NACA is a character based lending organization. That means that for those of you Savvys that have credit with some (may I say) blemishes you do not have to worry about that preventing you from purchasing a home. In order for you to take advantage of the No Money Down Home Purchase program you must attend their workshops. The first workshop that you must attend is the Orientation Workshop. This is the workshop that provides you with a bird’s eye view of the entire program. On behalf of my readers I attended the workshop to give you firsthand information on how this entire program works. Some of you are ready for me to get right to the point about the “No Money Down”. Below are the details of what I mean by no money down.
No Money Down!
No Closing Costs
No Down Payment
No Points for Fees
3.5% interest rate (better rate then the other banks). NACA works with Citibank to service your loan.
No Interest Max or Minimum
No Application Fee
No Appraisal Fee
No Escrow Fees
Plus, Renovation Financing Available
Now there is a maximum dollar amount on the home that you can purchase. You can purchase up to a $625,000 in some areas. The maximum home purchase amount varies by areas. No, this is not one of those programs where you can only purchase a home in some rural area or an area that no one wants to live in. No, you do not have to make under a certain amount to qualify for the program. You can have a six-figure income and still qualify for the program.
Below I am going to explain the process.
Attend the Orientation Workshop
The orientation workshop is a four-hour workshop that has a 30-minute break halfway through the workshop. Be prepared to bring a pen and paper to take notes. In this workshop representatives will review the entire process of being qualified to purchase a home and they will review the steps that are needed to complete the program. You will also hear a couple of testimonies from actual people that completed the program. I advise that you register for the orientation workshop as soon as you decide to attend as there is limited seating. The workshop that I attended in my area was at a church and it looks like they could only fit a total of 130 people. The workshops take place all over the country so you can go online and find one in your area.
Set Up an Appointment to Talk with a Housing Counselor
Once you complete the orientation workshop you will receive an email and you will be given an ID# to use to go online and schedule an appointment to speak with a housing counselor either by phone or face to face. Prior to going to this meeting, you will be asked to upload documents (ex. paycheck stubs, etc.) into their secure system. In this meeting, the counselor will review all the documents and determine if you are financially ready to own a home. Once ready to own a home the counselor will tell you the monthly mortgage payment amount that you qualify for based on your situation. Future mortgage payments are based on your current rent and savings pattern. Once you satisfy all the conditions that your counselor has set for you then you will move on to the next step. If for some reason you have not met all the conditions then you will just meet (in person or over the phone) with you counselor monthly until you meet all the conditions.
Attend the Mortgage Options & Qualifications Workshop
This workshop takes you through the purchase process. NACA has negotiated better interest rates that you would not be able to get by going to a bank on your own.
In this step, you will attend the Housing Search and Purchase workshop. NACA recommends using a NACA certified Real Estate agent.
Attend a Purchase and Sale Contract Workshop
Once you complete this workshop you will receive a letter from NACA stating that you are qualified and a bank is backing you. This workshop will give you the tools to properly negotiate your new home contract.
In this step, you will hire a NACA approve Home Inspector. Again, there is no money out of your pocket for the inspection. If the property that you selected needs some repairs you can get that included in your mortgage payment. Repairs must be done by a certified contractor.
NACA Credit Access
Your mortgage counselor submits all your paperwork to the bank.
Bank App & Processing
NACA loans are closed within one month!
In this step, you will have your new property inspected twice. You will purchase your homeowner’s insurance and get the keys to your new home.
NACA Post Purchase Program
You will meet with NACA after the closing of your home. NACA wants to ensure that you are all set after purchasing your home. They will ask you to volunteer at a few of their events a year so you can tell everyone else about your great experience.