I am trying to find the best mortgage and heard of a company called NACA that offers the lowest rates in the US, no closing costs, no down payment, no PMI. The only thing you pay is a $50/month member fee (for the 1st 5-10 years depending on the loan amount) and you must participate in 5 activities per year that help advance the company's mission (ie. protests, rallies, etc. against predatory lenders and similar activities) for as long as you hold the mortgage with them (which I am willing to do if it will make a significant difference in my payment). Now I already got qualified through a different lender and don't think I will have trouble qualifying for any good rate out there, but I do not have the funds for a down payment, closing costs, etc. (I was planning to go FHA with DPA), so these terms seem very appealing, especially since I will be saving on the rate and PMI vs. the other options out there. Does anyone have a mortgage through this company or know any other information? Are they legit? Is there a catch? I know that the owner must occupy the property while holding the mortgage with them (not a problem since it will be my primary residence), and cannot own any real estate at the time of purchase (once again, I meet that requirement). Is there anything else I should know about? I am generally pretty skeptical about everything, so this just seems a little too good to be true to me. Any advice will be greatly appreciated.
Just so you know NACA is a legitimate company. The good thing about them is that the only money you will have to come up with is the mortgage insurance for the first year and taxes, normally about $2000. They pay for everything else. The reason I know this is because I am a member as well as several of my colleagues and friends. Not only will you get a low fixed interest rate but you will also have forclosure assistance from NACA for life (thats why you pay the $50). SO I suggest anyone who wants a low mortgage payment go through them. The lenders they use are Bank of America and Citi Bank. Also before I forget you don't have to have good credit, matter of fact most people who use them have had past credit problems but they really work with you. Good Luck.
Thank you so much for all the advice. Shaylo, can you please give me an idea of the participation requirement and what exactly it involves, is there a minimal time committment that I need to make? What happens if I am unable to fulfill that?
Also, I would like to know what NACA stands for and if you have to live in a particular state AND if there are credit score requirements, income requirements, etc. AND if they have a website. Thanks for all of the questions.
Updates scores...inching along. Waiting for 7 recent medical collections to fall off!! (seriously working since END of May): EX 519 TU 576 EQ 449 8-02-08 EX 644 TU 647 EQ 575...650s here I come....700club, get ready!!!
NACA stands for Neighborhood Assistance Corporation of America
I'm reading their website now. NACA.com
Dallas, you said you stay away from naca, any particular reason?
Nevermind this question Dallas. I see now.
IMO from what I have read on the NACA website. 50.00 per month over 5 years = 3000.00 so it looks to me that you are still paying closing cost its just separate from the actual mortgage and equates to 3K over a 5 year period or as long as you have the mortgage with them. The advertised interest rate is 5.875 so I guess with rates rising daily that would be the most attractive thing about this company. Looks like it would be a lengthy process to get into a home, with the workshops, consult, etc.
Just to shed some light on the NACA mortgage. Its an excellent program for first time buyers, especially if you don't have perfect credit. They require that you pay the $50 a month for 5 to 10 years because you don't have to pay PMI insurance which is more expensive. What that $50 does is allow you foreclosure assistance in the event that you can't pay your mortgage. Yes they'll actually pay your mortgage for up to 3 months so its worth it. PMI insurance protects the lender , not you and is almost always more costly.
NACA does want each member to participate in at least 5 activities per year but just to give you a little seceret. If you really don't want to you don't have to. A have several friends that have a NACA mortgage and I know for a fact that they don't participate like NACA wants them to but it wont hinder you from getting the loan.
The reason I chose NACA was because my credit situation was not perfect. My credit score was 480 when I first started with NACA. They helped me bring my score up to a 580 anf they helped put me on a budget. They pulled my credit report told me what to pay off and what I didn't have to pay off to qualify for the loan. They work with you as long as it takes to get the loan. Once you attend the 1st seminar you are signed up with a mortgage consulant who helps get you qualified. The time that it takes depends on you. It could take a year or it could take a month. It just depends on you and how fast you pay off any debts if any, save money,etc.. They pay all fees the only thing they will tell you to save for is reserves, earnest money, taxes, etc.. Usually at least $2000 dollars. When your mortgage consultant says save $2100, thats all you really need. They cover everything else. Also just to give you an inside secret. The interest that they advertise is most likely not what you will close at. Just to give you an example once you are qualified, and pick your house whatever the NACA agent makes at closing goes to you to bring down your interest rate. They don't advertise that fact but its true. They already get paid by NACA so whatever the agent makes at closing (3 to 5%) is given to you to bring down your interest. All my friends have interest rates below 4% that went with NACA. I even have a friend that closed last yeat with NACA who has an interest rate less than 1%( thats because the builder was giving back $35,000 at closing). So as you can see thats why I'm going through them. It makes no since not to even if you have perfect credit. Let me know if you have anymore questions. Love to help anyone save money.
Shalo85 we need to talk. I have an appointment with NACA on 7/26/08. I am eager to see what they are talking about. Well, you pretty much summed it up. So are you saying if I am currently over 580 (mid score), then I would likely qualify?
4/15/2008 EQ 539 TU 489 EX 575, 7/25/2008 EQ 669 TU 555 EX 611, 7/31/2008 EQ 669 TU 555 EX 624, 8/5/2008 EQ 669 TU 586 EX 624
Your credit score is not important and is not what is going to get you qualified. Whats important is your ability to show steady proof of income, stick to their budget if they give you one and complete their task list once you go to your first important. After I went to their seminar and then went to my 1st appt. with the counselor she pulled my credit to see what my debts were and she told me to pay off certain things and to pay down some credit cards. It all depends on your current situation. They'll even help you get rid of inaccurate info on your report. SO you know your credit situation better than anyone. I suggest pulling your own credit report and taking care of anything that you know you need to pay down like a credit card (at least 50%). If you have any old collection accounts 12-24 months old I'd also suggest not paying them yet until you have your one on one because you may not have to pay them. Just go ahead and start getting paperwork together like bank statements (3 months), pay stubs, etc.. I have a question. Have you gone to the seminar yet?