Sound too good to be true? Well, it is true. The Neighborhood Assistance Corporation of America, known as NACA, has started this program after getting funds from major banks caught using predatory practices in lending. Those billions of dollars in funds are used to create loans to people all over the country.
Credit compromised? Foreclosure, short sale or bankruptcy on your credit? No problem, they are a non-credit based neighborhood assistance corporation that don’t use your credit scores to determine loan worthiness. You have to prove that you have met certain financial capabilities before they will consider you underwritten for a mortgage, like paying your rent & utilities on time & showing a savings pattern, among other requirements. But no where else will you see these kind of options for the buyer.
Another benefit of this loan program is that there is no Bank Mortgage Insurance on the loan. For the first 5-10 years of your loan, you pay a nominal fee which insures you & NACA that the loan will not go into default. So, should you have an unfortunate downturn in your life like loss of job or health issues that become burdensome, you let your mortgage counselor know & the insurance can kick in for you to assist you in paying your mortgage until such time as you can get back on your feet. This is unheard of in lending, no bank insurance but the home-owner is insured!
No other mortgage program offers these types of concessions to the buyer, especially if your credit has been compromised, you have no other way to get lower interest rates plus all the buyer concessions anywhere else but this program. If you have good credit or bad credit, you still will qualify for the same low interest rate & if you have cash to put into your home you can buy down your interest rate. Some buyers have closed with interest of less than 1%!
In addition to all the above there are often other grant programs that can be rolled into the mortgage to assist the buyer to renovate a part of the house, replace old windows, replace major appliances, water heater or furnace or just fix up the kitchen or bathroom to make the home more liveable.
What do you have to do to take advantage of this program? Contact me directly & I will be happy to enroll you in a NACA workshop as your referral agent for your home purchase. Only certified NACA agents are allowed to work with NACA clients.
Membership is required, there is a $20 annual membership fee & a $7 one time fee to run a credit check. The credit is pulled to see where the NACA member needs to provide information on the credit situation to the NACA counselor. Once the member attends the required Orientation, an appointment is set up with the NACA counselor.
When you meet with your counselor, they will inform you of your task list, you will need to complete all the tasks on your list before they will consider to you to be underwritten, providing them with explanations for bad credit, check stubs, banks statements, and the usual underwriting requirements.
Only when you have completed this step & they consider you underwritten will you be allowed to work with your agent. That is where I come in or another agent at Buyers Real Estate Group. As agents working exclusively with buyers, we protect your rights by directing to you to loan programs such as this, providing you with excellent service, directing you to see what needs repair/replacement in the home through NACA approved inspections, and, if repairs or replacements need to happen, we will work with NACA in writing the terms of the purchase & sales agreement to accomadate repairs done by the seller prior to closing, or, ensure funds are held to pay for the repairs or replacement shortly after closing. All repairs must be reinspected as well to prove the homeowner is protected. Funds are not paid to the contractor until the inspection is approved as completed. The buyer is always protected.
NACA & I, as your buyer’s agent, will work to get you the best price on a home, within your budget, with as little cash output from you as possible. You will enjoy the lowest interest rates possible, and the knowledge that you are protected from predatory lending practices of any kind.
This is an opportunity no one should miss! Please call me today for more information.
If you are a first time homeowner, or trying to downsize, or trying to get back into home ownership after a break due to other circumstances, all of the potential buyers should be aware of this program. There is no better option for most of my buyers. You must reside in the property for the length of the mortgage, and you may not own other property prior to qualifying for this program.
Call me today & we can get you enrolled in the free orientation seminar, all of this is free, there are no other hidden fees, so you may attend the meeting without obligation of any kind to see for yourself.
If you have any questions please contact me for further information so we can plan ahead together for your future home!
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Buyers Real Estate Group