The Neighborhood Assistance Corporation of America (NACA) is many things to many people.
For some, it’s a last resort before foreclosure. For others, it’s the best shot they’ve got at becoming homeowners on fair and affordable terms.
But to banks and lenders, it’s a dreaded nuisance that has browbeaten them into giving up what NACA would call ill-gotten gains from predatory lending practices.
Could this controversial organization help you? Here’s what you need to know.
Here’s what you need to know about NACA
Though it has roots in the 1990s, NACA really broke through to public consciousness during the housing bust of last decade. At that time, NACA used aggressive tactics like staging massive protests outside the businesses and homes of the CEOs in charge of our nation’s largest banks.
Their goal? Make them modify your mortgage so you didn’t have to lose your home during the Great Recession!
Through loud and in-your-face efforts, NACA basically publicly shamed the nation’s lenders into ponying up millions of dollars to restructure predatory loans with deep interest rate cuts. Meanwhile, on a parallel track, NACA also facilities the mortgage underwriting to make it possible for new homeowners to get into their first home with fair terms — thus reducing the likelihood of default to begin with.
Let’s take a closer look at NACA…
NACA’s signature loan is “America’s Best Mortgage Program”
The cornerstone of what every NACA office does — there are 45 spread from coast to coast in major metro areas — is its mortgage program. Offering what’s called “America’s Best Mortgage Program,” NACA promises you’ll be able to get your home with:
- No down payment
- No closing costs
- No fees
- No requirement for perfect credit
- No limits on your income
- All at a below-market interest rate!
Furthermore, you don’t have to pay an origination fee, application fee, underwriting fee, document fee, processing fees or private mortgage insurance.
In addition, the lender pays the appraisal costs, attorney fees, settlement agent fees, title insurance (though be sure to buy your own policy, too), transfer tax and customary buyer closing costs — not you.
At the time of this writing (6/26/18), the loan terms being offered for NACA participants are a 4.125% 30-Yr Fixed APR and a 3.875% 15-Yr Fixed APR.
Getting a mortgage starts with attending a workshop
Want to get a mortgage at that great rate with those great terms? It all starts with attending a free NACA Homebuyer Workshop. The workshops are held on a rolling basis across the country. See the schedule here.
Following your completion of the workshop, you’ll schedule an appointment with a NACA counselor for a face-to-face meeting or phone counseling session. That’s when the real work begins.
“The program takes about a year to go through. But if you get through it, you can qualify for homes you might not qualify for otherwise,” money expert Clark Howard says. “Not everybody is going to make it, a lot of people will say, ‘Wait, this is too much work for me.’ But if it really is important to get that first home, this could be an opportunity for you.”
Facing foreclosure? NACA can help
If you become a NACA homeowner and then face an unexpected financial challenge that pushes you dangerously close to bankruptcy, there may be help for you as well.
NACA’s Membership Assistance Program (MAP) offers comprehensive counseling should you become mortgage delinquent. This help may take the form of setting up payment agreements to get you all caught up.
What’s more, you can even receive funds through MAP to make up to three months of mortgage payments if you’ve really been blindsided financially by something in your life!
Each month of mortgage assistance you need must be applied for separately. Your application will be reviewed each time by a lending committee comprised of fellow NACA homeowners and national staff.
You can read more about MAP here.
NACA offers renovation help, too
The NACA program isn’t just about getting you into a home. It’s also about helping you with the upkeep of that home through home renovation.
NACA’s Home and Neighborhood Development (HAND) Department handles repair issues, including providing “rehab assistance throughout the renovation process,” where appropriate.
In fact, if the renovation is so extensive that you can’t live in the home, NACA even allows you to defer payment on your mortgage for up to six months while you shack up elsewhere!
Get more info on HAND here.
Want to help NACA continue its mission? Become a volunteer or get a job working at your local office!
NACA is always in need of more passionate people to help make the dream of homeownership a reality, or to throw a lifeline to those for whom owning a home has become a financial nightmare.