NACA Home Buying and Mortgage Program provides both comprehensive housing counseling and incredible mortgage
The Neighborhood Assistance Corporation of America (“NACA”) is a Non-profit HUD-Approved Community Advocacy and Homeowner Membership nationwide organization. Currently there are about 40 offices nationwide and rapidly growing. NACA Phoenix office is located at 1301 East Washington Street Suite 200, Phoenix, AZ 85034.
NACA’s primary goal is to build strong, healthy neighborhoods in urban and rural areas nationwide through affordable homeownership. NACA has made the dream of homeownership a reality for thousands of working people by counseling them honestly and effectively, enabling even those with poor credit to purchase a home.
In order to participate in NACA program and NACA mortgage, you must be NACA member. There is annual dues to become a member. The memberships provides you access program including NACA Mortgage, comprehensive counselling and post-purchase assistance. Member also pledge to participate with in future community outreach and advocacy campaigns.
NACA – America’s Best Mortgage Program
The incredible NACA mortgage allows members to purchase their homes with:
- No down payment
- No closing costs
- No fees
- No PMI (Private Mortgage Insurance)
- No Credit Score Consideration (approval based on individual circumstances)
- And at a below-market interest rate
Who is Eligible for the NACA Mortgage?
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”). NACA’s eligibility is based on the family median income for a Metropolitan Statistical Area (“MSA”).
How long does NACA process take?
The length of the process to become qualified is based upon each member’s situation. Many Members can be NACA Qualified (i.e. pre-approved for the NACA Mortgage) in about three months. It should not take more than six months unless there are extenuating circumstances such as a foreclosure, bankruptcy or charge-off within the last two years. Also liens that need to be paid-off may take additional time. Once a member is NACA Qualified, finding a house will determine the amount of time.
The Process of Buying Home with NACA Program<
Step 1: Attend a Homebuyer Workshop
The first step in the purchase process is to attend a NACA Homebuyer Workshop which is open and free to everyone. You must attend the homebuyer workshop. The NACA four-hour Workshop is just the first step in a several-month counseling and qualification process aimed at helping prospective homeowners financially prepare for owning a home. Upon completion of the NACA Workshop, you need to schedule an appointment with a NACA counselor for a face-to-face meeting or phone counseling session.
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Step 2: Housing Counselor
A NACA mortgage consultant continues to guide members through the qualification process, an application that includes a review of payment history, debt obligations, savings, documented income and budgeting. Counselors also conduct an affordability analysis, which determines how much house a borrower can honestly afford. Your Housing Counselor determines if you are ready for homeownership, the mortgage payment you can afford, and provides you with your next steps.
Step 3: Mortgage Options & NACA Qualification
In the Mortgage Options section, various mortgage products are described. The details of becoming NACA Qualified are also provided. NACA Qualification is required to access the NACA Mortgage. NACA Qualification is so extensive that it meets the requirements of many other mortgage products. NACA Qualification means that a Member is ready for homeownership with an affordable mortgage payment. Being NACA Qualified makes one a desirable buyer for agents to work with and sellers to sell to.
Step 4: Housing Search
Once you are NACA Qualified, you will need to attend a Purchase Workshop at a NACA office. These workshops are required for all NACA Qualified Members who want to access the NACA Mortgage. You will be provided with information about beginning the home purchase process; identifying properties; addressing repair issues; obtaining NACA Credit Access Approval; submitting your NACA Mortgage loan application; processing the mortgage application; and obtaining NACA’s post-purchase assistance. You will receive your NACA Qualification Form and can begin searching for the home of your dreams.
You need to find a home that is within your NACA Qualification and meets your needs and desires. Your NACA Qualification is valid for 90 days. Therefore it is important that you use this time to search for your home since you would need to be re-qualified after 90 days or before if your circumstances changed to ensure that you are still qualified and your maximum mortgage payment has not changed. You can work with a NACA Real Estate Agent or Real Estate Agent of your choice to identify the home of your dreams.
Step 5: Making Offer
The Purchase and Sale Agreement (P&S) is a very important contract as it binds you and the seller to execute the transfer of the home at an agreed price under specific terms. You real estate agent will help you to negotiate with the seller/listing agent who will be responsible for any repairs, determine the amount of any seller funds for repairs to be included in the mortgage amount, any seller contributed funds to buy-down the interest rate, and then execute the Purchase and Sale contract. Prior to signing the contract, you need to contact your Housing Counselor and provide them a copy of the MLS and the amount you are considering to offer the seller to confirm if the property is within your maximum purchase price, which may change due to interest rate shifts.
Step 6: Property Inspection
Once you select a property for purchase, it must be inspected by a qualified NACA-approved home and pest inspector(s) to determine the overall condition of the home you wish to buy. Just as you must qualify for a mortgage payment you can afford, the property you want to purchase must undergo an inspection review process to determine the home’s condition in order to assess its suitability. Existing repair conditions such as code, safety, health, structural, mechanical systems and preventative maintenance needs often require correction in order for the home to qualify for purchase. NACA’s Home and Neighborhood Development (HAND) department works with you to assess property conditions and assist in addressing required repairs.
Step 7: NACA Credit Access
Once contract is accepted by seller, time is of the essence to submit your bank application in order to close by the deadline agreed to in your Purchase and Sale contract. It is now crucial to meet with your Mortgage Consultant to be approved for NACA Credit Access which requires verification that you are still NACA Qualified. Approval of NACA Credit Access will allow your licensed Housing Counselor to complete your NACA Mortgage application and submit it to a participating lender.
Step 8: Mortgage Application and Processing
Your Mortgage Consultant will take and submit your mortgage application to the participating lender and NACA will process your file. NACA’s Underwriting and Processing Departments will facilitate the underwriting and processing of your loan at the lender. There should be few conditions on your mortgage since any lender issues would have been addressed at NACA Qualification and addressed prior to the time the mortgage application was taken.
Step 9: Mortgage Closing
NACA and the Settlement Agent will coordinate your closing on a NACA Mortgage at a NACA office. You will be advised about all costs (such as pre-paid taxes, pre-paid insurance, etc.) due at the closing and any other required items. You will need to bring a certified check, made out to the settlement agent for these costs, if any. Just prior to the closing, examine the property to make sure all arrangements involving repairs, tenants, cleaning, etc., have been followed. At the end of the closing, you will own the property, receive the keys and MOVE IN!
Step 10: NACA Post Purchase Program
Once you have closed on a NACA mortgage, your NACA membership provides you with a post-purchase assistance program through NACA’s Membership Assistance Program (MAP). MAP has trained and specially dedicated staff ready to provide comprehensive counseling to prevent financial difficulties and, where necessary, to get you back on track.
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