The NACA home loan program requires the borrower not to own any other property, to present a property within the agency's area of operations and to submit a maximum buying price for the property, explains Maria Trimarchi and Molly Edmonds for HowStuffWorks. The borrower must undergo an intake session for the qualification process.Continue Reading
NACA holds that an owner-occupant of a home greatly affects the success of the neighborhood, so the borrower must occupy the property, notes Trimarchi and Edmonds. A maximum buying price aids in identifying the individual who desperately needs a home. This is because the majority of NACA members are first-time home owners who may find it difficult or expensive to purchase homes on their own.
To qualify for the loan, a person must participate in at least five community advocacy activities every year, according to Trimarchi and Edmonds. Advocacy activities include neighborhood outreach by educating others about NACA's mission, voluntary working in the local NACA office or taking part in the agency's rallies and demonstrations.
In the intake session, a counselor takes the member through payment history, debt responsibilities, savings and affordability analysis, notes Trimarchi and Edmonds. The counselor also confirms the documented income and budget. NACA interest rates are lower than 4 percent, and the applicant does not have to place a down payment. After the qualification process, the member has to attend a purchase workshop and present his mortgage application. The counselor examines the property search, suggests if a rehab is necessary and later submits the new mortgage to the lender.Learn more about Credit & Lending