Exploring Naca: Do They Offer Construction Loans?

The Neighborhood Assistance Corporation of America (NACA) is a HUD-certified non-profit organization that provides affordable homeownership opportunities to low- and moderate-income individuals and communities that are typically underserved by traditional lending institutions. NACA offers a range of housing programs, including mortgage products, to help make homeownership more accessible. One of NACA's key features is that it does not require a down payment or closing costs, making it easier for those with limited financial resources to purchase a home. NACA also provides financing for repairs and renovations, but does this affect their ability to offer construction loans?

NACA's One-Dollar Homeownership Program

Through this program, community residents can purchase a vacant house or lot from the city for just one dollar. NACA provides financing for any necessary repairs, renovations, or new construction through its Best in America Mortgage, which offers highly favourable terms. This includes a below-market fixed interest rate, no upfront costs or fees, no down payment, and no credit score requirement.

The One-Dollar Homeownership Program is a comprehensive neighbourhood revitalisation initiative. It increases the tax base, encourages greater investment in property improvement, and promotes community involvement and participation in the school system. It also helps to address crime issues by creating a critical mass of homeowners who are invested in the safety and well-being of their neighbourhoods.

To participate in the program, individuals must first complete NACA's comprehensive counselling program to ensure they are prepared for the responsibilities of homeownership. They can then explore available city-owned properties and lots and participate in an in-person lottery that prioritises residents, Section 8/Housing Choice Voucher holders, and income levels. Once a property is selected, individuals enter into a purchase and sales contract with the city for one dollar and finalise the contract with the assistance of a NACA counsellor.

NACA's Home and Neighbourhood Department (HAND) provides ongoing support throughout the renovation process, and individuals are not required to make mortgage payments during the first six months if they cannot live in the property due to renovations.

NACA's Housing Programs

NACA, the Neighborhood Assistance Corporation of America, is a HUD-certified non-profit organization that provides affordable homeownership opportunities to people who are typically targeted by predatory lending practices. NACA's housing programs are designed to help low- to moderate-income individuals and families achieve their dream of owning a home.

One of NACA's key housing programs is the Best in America Mortgage, which offers a 30-year fixed-rate mortgage with no down payment, no closing costs, and a below-market interest rate. NACA also provides a 15-year loan option with an even lower interest rate. These mortgages are available to those with bad credit and do not require mortgage insurance. NACA also assists members in obtaining home equity loans for property repairs.

The One-Dollar Homeownership Program is another initiative by NACA to create affordable housing opportunities. Through this program, community residents can purchase vacant houses or lots from cities for just one dollar. NACA provides financing for repairs, renovations, or new construction through its Best in America Mortgage program. This program aims to revitalize underserved neighbourhoods, increase community investment, and address issues such as crime and declining tax bases.

NACA also offers a combined purchase and rehab mortgage, allowing members to include renovation costs in their mortgage to address health, safety, structural, and code issues. NACA's Home and Neighborhood Department (HAND) provides ongoing assistance to members during the renovation process, and members are not required to make mortgage payments for the first six months if they cannot live in the property during renovations.

Additionally, NACA provides down payment assistance in the form of grants, forgivable loans, or traditional second mortgages. They also offer homebuyer education through their Homebuyer Workshop (HBW) and counselling sessions, helping individuals obtain the 8-hour HUD certificate. NACA is committed to helping underserved communities build generational wealth and closing the racial wealth disparity gap through character-based lending.

NACA's Mortgage Product

NACA also provides a combined purchase and rehab mortgage, where members can include the rehab amount in their mortgage to address health, safety, structural and code issues. NACA's Home and Neighbourhood Department (HAND) assists members throughout the renovation process.

NACA has been working for over 30 years to challenge the industry and change lives, with a focus on providing affordable homeownership to low- and moderate-income communities.

NACA's Home-Save Department

The Home-Save Department's work is particularly crucial for homeowners who are struggling to make their mortgage payments and are at risk of foreclosure. NACA positions itself between the homeowner and the servicer to advocate for affordable payments. This advocacy includes modifying unaffordable mortgages to make them more manageable for homeowners. NACA's efforts have helped stabilize neighborhoods and set a new standard in mortgage lending.

In addition to its work with existing homeowners, NACA also offers a range of programs to promote affordable homeownership. The organization provides financing opportunities to borrowers typically targeted by predatory lending practices and those left out of traditional lending criteria. NACA's mortgage product is unique in that it does not require a down payment, has no upfront costs or fees, and offers a lower interest rate than FHA loans.

NACA also offers the One-Dollar Homeownership Program, a partnership with cities and towns to create affordable housing options for low- to moderate-income homebuyers in underserved communities. Through this program, community residents can purchase vacant houses or lots from the city for just one dollar, and NACA provides financing for any necessary repairs, renovations, or new construction through its Best in America Mortgage program. NACA's comprehensive approach to neighborhood revitalization increases the tax base, revitalizes communities, and addresses issues such as crime and low investment in property improvement.

NACA's Purchase and Rehab Mortgage

NACA provides a combined purchase and rehab mortgage. Members can include the rehab amount in their NACA mortgage to address health, safety, structural, and code issues. The rehab amount is put into an escrow account at closing, with no limit on the rehab amount, as long as the "subject-to" value—what the property will be worth after all repairs are made—does not exceed 110% of the loan-to-value.

NACA's Home and Neighbourhood Department (HAND) assists members throughout the renovation period. If a member cannot live in the property during the renovation, they do not have to make a mortgage payment during the first six months. The future mortgage payments do not change, as the impact of six months' mortgage payments added to the loan is eliminated by permanently reducing the already below-market interest rate by an additional 0.375%. HAND provides ongoing assistance and coordination throughout the renovation process and completion of repairs. The HAND program allows homebuyers to compete with cash buyers and investors who would either flip the property at a much higher sales price or turn it into a rental property with high rental rates. HAND will also educate and work with a homebuyer throughout the renovation process, creating a scope of work and rehab budget.

NACA's One-Dollar Homeownership Program is a partnership between NACA and cities and towns across the nation to create affordable homeownership for low to moderate-income homebuyers in underserved communities. Community residents can purchase a vacant house or lot from the city for only one dollar. NACA will provide financing for any necessary repairs, renovations, or new construction through NACA's Best in America Mortgage. This is a comprehensive neighbourhood revitalisation program that addresses a myriad of intractable issues in underserved neighbourhoods. It increases the tax base, revitalises communities with increased investment in property improvement, increases participation in the community and school system, and fundamentally addresses the crime issue.

NACA's Mortgage Product offers a 15-year loan with an interest rate about 0.50% lower than NACA's already below-market 30-year mortgage. There is no down payment required on a NACA Mortgage, and all NACA mortgages are 100% LTV (loan-to-value). The lack of a down payment does not increase the interest rate or any other costs. NACA does not require mortgage insurance, and there are no upfront costs or fees. NACA also generally does not refinance mortgages, as it is best to modify an unaffordable mortgage. The NACA Home-Save Department assists homeowners in achieving an affordable mortgage payment.

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