Has anyone heard of/used this NACA mortgage crowd?

Question

Has anyone ever heard of this NACA (Neighborhood Assistance Corporation of America). They claim to offer 3.75 30yr and 3.0 15yr mortgages with no money down + no closing costs. Anyone know if this is for real?

Daniel Rubin · Answer

Hi @Tim Trumble,

Is it true that NACA has a deal with Bank of America that if a NACA borrower bids on a foreclosed home that is owned by Bank of America, the bank has an obligation to accept that offer even if it is less than the highest offer presented?

Account Closed · Answer

yes.they are legit. I went through them before but decided to not move forward since their home buying process takes way to long. It's geared for people who can't obtain coventional financing, if you're able to do coventional financing or don't have the patience to wait 6 months to 2 years,  don't go with them.  If you can't, then it's a great program since you pay little out of pocket, no pmi, no closing costs,lower interest rate. But it'll take a while before you can get into a house and you have to put in certain amount of hours for volunteer work.

Account Closed · Answer

They have a very detailed process but they give mortgages to people who cannot otherwise get them. It is basically a financial counseling program + lender relationship and requires way more than a simple application.

One example of volunteer work is hosting/leading informational events, but there are other things you can do. My dad is currently going through their process so I can check the giant booklet he has and see what info could be useful to post :). To be continued....

Naoise M. · Answer

Wow thats pretty great info, thanks Tim

Tim Trumble · Answer

Hi Daniel,

We do have a unique program with BOA regarding REO properties.  NACA members have access to a select (limited) list of REO properties 14 days before they are made public on the bank's REO website.  Should a qualified NACA member make an acceptable offer on one of the properties within the 14 day period, BOA is obligated to accept that offer even if someone else makes a higher offer later.

As a part of the same program BOA provides an additional 10 discount points on the loan, reducing the interest rate by 2.5% below the going NACA rate.  The program is not for everyone in the NACA process, and it doesn't include every REO property BOA has.  But for those who can take advantage of it, it's pretty spectacular.

Tim Trumble

Online Operations, NACA

ttrumble@naca.com

Tim Trumble · Answer

Hi Mike,

Yes, there is an absolute owner-occupany requirement for the life of the loan, which is enforced with a $25,000 lien on the property.  This is because we are first and foremost a community advocacy organization dedicated to responsible individual home ownership, especially for low to moderate income families.

The NACA process is not designed to be either fast or easy, but that's why we are able to offer the outstanding mortgage products that we have. The average person does take about six months start to finish, but the time to complete the process varies with the individual's circumstances.  Others proceed more quickly and are in their new home in three months, while those with issues that need to be taken care of may take as long as two years.

Regardless, the savings compatred to any other type of mortgae out there are such that it is always well worth the time and effort.

Tim Trumble

Online Operations, NACA

ttrumble@naca.com

Mike Hurney · Answer

@Tim Trumble

Owner Occupied only?

6 months to 2 years? ;-)

Les Jean-Pierre · Answer

My cousin went through NACA for a mortgage after she got divorced. It was a long process but she got a very low 30 year fixed mortgage. She told me they put her on some budget program and really scrunitized her finances but ultimately, it was worth it.

Charmaine M. · Answer

@Naoise McDonnell.....yes they are legit. I actually went to one of their workshop and everything Kim said is on the money.

If you have time and patience and willing to do their volunteer work it is a great program.

Good luck!!

Mark Kurian · Answer

I've been looking into this as well. To what I understand, you have to take a 4 hour course or something along those lines. I would like to see if I can get a 15 year loan with low interest and no down payment. I learned about this literally right after purchasing a home. I want to learn more about this and be able to tell my family or possibly look into it further myself.

Has anyone heard of/used this NACA mortgage crowd?

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