NACA
In todays mortgage climate many buyers who would normally be able to purchase a home have gone into hiding until the financing loosens up or the buyers can make the necessary changes to meet the new expectations. What many buyers don’t know is that their is an alternative.
I have sent many of my buyers through this program and I have seen some amazing results. NACA is a non profit organization making housing affordable to more Americans. They have attacked unfair lending practices in the past and continue to do so today in the refinancing of balloon mortgage notes. You don’t hear about them much unless the local news is covering them because of the non existance of advertising.
There are some pros and cons to working with NACA you need to be aware of. I’ll start with the pro’s first: #1 no credit score requirments #2 You can buy your interest rate all the way down to zero #3 The lender pays all closing cost, down payment and title policy. This results in a zero down home purchase. #4 You can use this loan for any home purchase up to 205K, new, used, reo, hud, etc.
Ok, now for the cons: #1 it’s a none profit so you need to keep your apointments, and stay on top of your paper work with them or you will get lost in the shuffle. #2 You have to attend a four hour work shop on a Saturday to get started. Many people get lazy on this and never go. #3 The program is not available in all states yet. You can view this info on the website. #4This really isn’t as bad as it sounds, but they require you to attend up to 5 events or refer to them 5 people a year. I do not believe they hard line this requirment but I believe the interest rate and terms are worth the effort for any buyer.
My recommendation for anyone considering this program is to have a Realtor refer you to the program. I do it all the time. If you go in alone without a realtor you will automatically have to work with one of their in house agents who is required to kick back 33% of the commission to NACA which leaves you with little to no wiggle room to negotiate other items important to you. Items you may need may include: lease buy out options, relocation fee reimbursment, appliances etc. If you’re unsure how this works let me know and I’m happy to explain requardless if you use me or not.
Merry Christmas and Happy New Year to all!!!
Krishna Perkins
In the past my husband and I have tried to buy a home the traditional way thur the banks an so and it was always an issue of the credit score or too many open loans… So we did a owner finance which we basically settled for the first thing we could find the intrest rate is 8.9. I went to the seminar or workshop and it seemed to be legit but now because this home’s deed is in my name we do not qualify… we basically are stuck again in a home that we are not happy with. We spoke with one of the representives that spoke throught the workshop… He was pretty arrogant and made us feel like we were pretty stupid to the point I did not want to ask him anything else. He did say you have to sell the house but my question was will have to be before the consult appointment? Also because I heard of someone deeding the home back could we do that and be okay?
Thanks for the comment. It is my understanding that if you own the house out right then you can deed it over to someone else while you go through the NACA process. If you still owe money on the home you will have to sell it before you go through NACA. I’m sorry you had a bad experience with NACA. I had some clients go through them and I will never send anyone to NACA again. It’s unfortunate because I think it could be a good program but they are understaffed and over booked. I would not waist your time going to the meeting unless you sell the home or deed it out of your name. I look forward to hearing back from you!
Best Wishes
What if you just want to refinance with NACA? What are the pros and cons to doing so? I must say I’m alittle skeptical because they do not have anyone to discuss this with over the phone.
Good question. And I understand your frustration. I think the over all purpose of NACA is good but the customer service is no existant due to the non-profit nature of the company. I had a couple clients I took to NACA and had some frustrations with getting them through the process in a timely fasion . The best advise I can give to anyone is to stay on top of them and do everything to the letter when they lay out your instructions. The good news for you Tiffany is that if you are getting refinanced due to a predatory loan you will get some priority. I noticed they will make special appointments to help you avoid loosing your home. So, go ahead and sign up for the NACA meeting, keep great notes on what to do and you will be ok.
Be sure to stop by and let everyone know how it works out.
Best wishes,
Krishna Perkins, Realtor
Did you guys ever get this thing taken care of?
Hi Mr. K Perkins, I am currently looking into the Naca Program due to us hiring an attorney to assist us in a remodification loan. I guess my question is if a person files for a BK chapter 7 but they still express a desire to stay in their home. Do the banks still work with them after they’ve been pending the remodiciation procrss for awhile? If not, what do you recommend we do?
thx for your input into this matter, I look forward to hearing from you. Sincerely, vera
Your attorney should be able to guide you on this. Be sure you’re getting help from a Real Estate Attorney. NACA is a good choice for home owners who have mortgage rates in the double digits or adjusted way out of control. And they do it for free. If your attorney hasn’t gone to work on this already NACA knows the in’s and outs of the remodification business. Your other option is to go ahead and try selling the house. If you can’t sell it at fair market value your lender will most likely approve a short sale based on your demonstration of a hardship. To find out more about getting a hardship approved ask for your bank’s loss mittigation department.