Regular Contributor
Posts: 216
Registered: ‎04-19-2007
Re: Got a GREAT mortgage!!!!
I read their website briefly. Interesting program. Seems there are benefits and disadvantages to the program.  The low below market fixed rate is an obvious advantage. As well as their ability to help people get out of difficult mortgages.  
    They do require a monthly membership fee included in your payment for every month of your loan for 5 - 10 years, plus an annual member fee of $20.  

      NSF/Membership:     $50 per month for 5-10 years.
     (Neighborhood Stabilization Fund)

 

That's $3000-$6000 in fees.    Also there are occupancy restrictions, possible difficulty in getting a 2nd mortgage ever on the program, property ownership restrictions and their Participation Pledge  requires you to participate in at least five activities a year.

Just like a lot of people in trouble from 2003-2005 ARM, IO ARM, etc. mortgages who didn't read the loan details completely or ask enough questions,  I would make sure with NACA or any program to read everything & ask every question possible to 100% know what you are getting yourself into for the short-term and the long-term.