You’ll now need to submit the documentation required in order to officially qualify. Much like your typical home buying process, you’ll get the home inspected with a NACA participating inspector to ensure there aren’t any issues that need to be addressed before moving into the home. Additionally, you’ll work together to get an offer drafted on the home. Once you’ve identified the home that you’re interested in purchasing, your counselor and real estate agent will assist in getting you a qualification letter. Qualification and purchase contract submission.
#NACA PROGRAM PROFESSIONAL#
In this workshop, you’ll work with the counselor to identify properties that fall within your price range and be connected with a real estate professional that participates with the NACA program. *this portion consists of a 90-day window During this timeframe you’ll continue to pay bills, avoid any new credit inquiries (credit cards, auto loans, etc.), and continue to generate income so that you can put money away for your home while being able showing bank statements later on. You’ll then become NACA-certified and should continue to build your credit.
If daunting at first, they’re there to help you each step of the way. The counselor will give you steps to become more financially secure and check in frequently. Once the workshop is complete, you’ll need to meet with a housing counselor to determine your budget Much like how you’d go through the pre-qualification process on a conventional loan. Search for a local workshop directly on NACA’s website. This will provide further detail such as the total costs and qualifications. These are hosted on a per area basis so look for one that’s local to you.
#NACA PROGRAM FREE#
The first step in getting started is to attend a free homeownership workshop.
#NACA PROGRAM HOW TO#
Now that you have a better understanding as to what the NACA program entails, let’s get into how to get started if you’ve determined it’s a fit for you. While the NACA program is a great alternative to conventional loans for lower income buyers, it’s important to be aware of the requirements that come along with the program. You cannot buy a home that exceeds the local loan limits for a conventional mortgage (your realtor will be able to walk you through this).Help other members through their home buying journey.You’ll participate in at least 5 activities per year that could include:.An annual membership fee of $25 is required to be a NACA member.The home that you close on must be your sole property.While traditional mortgages look at your credit score, the NACA program looks at other factors such as: One of the major appeals of the NACA program is that those with lower credit have an easier time qualifying for lending. Whereas potential homebuyers with higher incomes than the area median are only allowed to buy a home in areas that are designated “priority areas”.
Potential homebuyers with a household income that falls below the median household income in their area can buy a property anywhere within that given area under the NACA program. Now it’s time to find out who qualifies for the NACA program. Lastly, the MAP program assists homeowners with budgeting and planning so that they can make smart financial decisions that set them up for a more financially stable future. With the NACA program, the Membership Assistance Program (MAP) takes the place of PMI and guarantees the loan in the case of defaulting. On a conventional loan, private mortgage insurance (PMI) is typically required if you’re putting less than 20% of the home’s value down as a down payment. Rather, they’ll refer you directly to a participating lender in their program.
*APR’s are subject to change with market conditionsĪs we break down interest rates, it’s important to note that the NACA program simply facilitates the lending and doesn’t directly provide the loan. As of September 2021, their terms look as follows: For low-to-moderate income borrowers The NACA program provides highly competitive mortgage rates and their current rates can be found here. The NACA program provides first time buyers with the ability to mitigate: NACA is a purchase program that educates buyers and helps facilitate affordable financing.