We all could use a little help on credit, me included. In my time, helping home buyers reach their goal of home ownership, I have learned a few tricks of the trade to help get that score up 20
Why Lenders Dont Tell You About NACA
Have you heard about this mystical unicorn of a product called NACA? People tell you,"it can't be done this way." "Nobody every gets a home with this program."
What if I told you that's not true? You can buy a home with the NACA program, and we've partnered up with a company that has made qualifying for it that much easier.
What is NACA?
Well the short version is it's a government program that allows people to qualify for a home not based on credit score but on merit and other qualities. It's a lot like a VA loan if you're familiar with that, with a few other exceptions, no closing costs being a big one. Most of the time, with a VA loan you need to ask the seller for closing costs to cover the 2%-ish fee that it costs to do a VA Loan. With NACA you get:
1.) Below industry standard interest rates... When I wrote this blog they were at 2.75 (subject to change depending on when you are ready to buy)
2.) No down payment
3.) No MI (this is similar to the VA Loan) MI is mortgage insurance and most lending products have you spending over 100/mo to carry an extra insurance on the mortgage if you owe more than 80% of the value of the home.
4.) No Closing Costs.
5.) No great Credit Score needed
The Neighborhood Assistance Corporation of America ("NACA") is a non-profit, community advocacy and home ownership organization. NACA's primary goal is to build strong, healthy neighborhoods in urban and rural areas nationwide through affordable home ownership. (I took that from their website.... copy... paste)
It's a great program, if you have time. That's the catch... takes 60+ days to close typically. They will say 45+ but take it from me, you are going to want to expect 60 or more or you will be very stressed out. We have a two part program we are working with here at the Cotton Group of West USA Realty, where we can pick out the house you want to buy, you move into it as a rental for up to 5 years, but you have the option to buy it, and then you qualify thru NACA to purchase the home. No stress on getting the loan down because you are already in the home, so you just qualify when you get there. The owner of the home doesn't care how long it takes because you are in the rental agreement anyway until you can finance out of the lease agreement. To get into the lease program you will need a 550 credit score, but we can cross that bridge when get there. Here's a linkto that blog where I described that part of buying a home.
So why don't lenders tell us about this program, or want us to do this program?
NACA is partnered with Bank of America for this program. And not just any Bank of America, but the one Plano TX. Your lender, unless they work for the B of A in Plano, can't do this loan. So it doesn't help them or their pocket book to give you this option. And yes, it's harder and longer to get the loan down and a simple 640 credit score gets you a home today the traditional way, but at a higher interest, maybe with mortgage insurance, and money down and money at closing. I'm not saying NACA is for everybody, in fact, if you make more than 79k per year, you are limited to the neighborhoods you can purchase. They aren't terrible neighborhoods, but you can't qualify for a 500K home with this program.
The easiest thing to do is tell me you're interested in NACA, and I will get you registered or have our NACA reps reach out to you for a time you can come and get started on the program. Do lenders hate this program? Heck yes. Do we care? (I wouldn't be writing this if we did) If spending 30 minutes out of your day gets you the home that you want for the price that you want, wouldn't that be great? :) Click hereto register for a quick call back or set up follow up.
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