Hello good people…
I’ve been looking into buying my first home and came across the NACA (Neighborhood Assistance Corporation of America) program. It seems like a great opportunity for first-time homebuyers with no down payment and low-interest rates. However, before I dive in, I’d love to hear from anyone who has gone through the program.
What was your experience with NACA? Were there any challenges or unexpected benefits? Would you recommend it to others?
Thanks in advance…
I am not a homeowner yet, but I have interacted with several clients and they happen to know someone who has bought through NACA.
I found it impressive that they have a 2.5% interest rate. Even more impressive is that they neither paid downpayment or the standard PMI.
I purchased my current home three years ago through NACA. The process was pretty quick; from attending the intake class in January to closing in March, it only took a few months. I had worked for a mortgage company in the past, so I stayed on top of the process.
When I first used the program, the terms were different: anyone, regardless of income, could get a below-market interest rate as long as they bought in an area with below-median income. Given that my income is now above the median, I wouldn’t use the program again; it’s not as beneficial anymore.
Securing an accepted offer was challenging because the 100% financing aspect often worried listing agents. However, NACA covered all closing costs, including appraisal fees, and I benefited from 100% financing. I used my 5% down payment to reduce my interest rate from 3.375% to 2.125%.