NACA Home Buying Program: Everything You Need to Know

If you’re looking to buy a new home but don’t have enough money saved up, the NACA Home Buying Program might be your answer. This special program allows low-income families to purchase new homes, often with no down payment and at very low monthly payments so that there are little obstacles in their way to homeownership. Let’s take a closer look at what the NACA Home Buying Program is and how it works so you can get started as quickly as possible!

NACA Home Buying Program: Everything You Need to Know

The NACA home buying program, a mortgage loan originator in the US, offers homeownership opportunities for those who meet certain qualifications. It is a loan originator and servicer that provides access to mortgages for low-income borrowers. NACA’s program offers first-time buyers, veteran families, and lower-income families an opportunity for home ownership. This post will answer some of your questions about how it works and what requirements you need in order to qualify.

What is the NACA Home Buying Program?

NACA's mortgage program is a way for low-income individuals and families to buy homes. The program is based on a sliding scale, with people making up to $42,000 qualifying for the full 5% down payment assistance. Requirements for NACA include being at least 18 years old, having a valid Social Security number and having no felony convictions. As long as you qualify and are approved by the bank, you can use this program. Alternative options such as purchasing a condo or townhouse may be more affordable than buying a house. Visit our FAQ page for more information about how the program works and what requirements there are for applicants!

How Does the NACA Home Buying Program Work?

NACA's mortgage program is designed to make homeownership more affordable for families who have had difficulty saving enough money for a down payment. The NACA Home Buying Program has three primary requirements that applicants must meet in order to qualify: 1) Household income must be less than the median income in the area, 2) The applicant cannot have any outstanding debt and 3) The applicant must not have been foreclosed on in the past two years. Alternative options are also available for those who do not meet these requirements such as the NACA Housing Choice Voucher Program. To find out more about how this process works or if you think you may qualify, please contact your local NACA partner agency.

Who is Eligible for the NACA Home Buying Program?

The NACA Home Buying Program is open to low-income families who have not previously owned a home, as well as individuals and couples who meet these requirements. To qualify, you must be able to show that you earn less than 80% of the median income in your area. For example, for an individual or couple living in Washington D.C., the household income would need to be $59,750 or less annually for them to qualify. 

The benefits are that there are no down payments required (but it’s recommended), no PMI insurance premiums, and your mortgage rate will never exceed 5%. If you have been denied by a conventional lender due to debt-to-income ratio or credit score restrictions, then this may provide an alternative option for homeownership financing.

What are the Benefits of the NACA Home Buying Program?

NACA’s mortgage program offers an alternative option to traditional home buying. Qualified buyers are able to purchase a home with as little as 3% down, which is significantly less than the 20% you’d need with a conventional mortgage. And don’t worry if you can’t afford your monthly mortgage payments – NACA has partnered with banks and lenders nationwide that offer affordable loans and flexible terms for eligible borrowers. For example, many of these partnerships offer interest-only payments while you're paying off your mortgage and may allow up to six months in arrears before taking action against you. To be eligible for NACA's home buying program, all prospective homeowners must meet certain requirements.

How to Get Started with the NACA Home Buying Program

NACA's mortgage program, How it works, Requirements for NACA, Alternative options, NACA program FAQ. Mortgage requirements are on a case-by-case basis and depend on the type of property you want to buy, your income and savings and the price of the home you’re purchasing. Alternative options include partnering with a friend or family member who can contribute 10% of the purchase price and signing up with a nonprofit lender like Habitat for Humanity International or Self-Help Federal Credit Union that may be able to offer competitive interest rates. Questions? Contact us! We're happy to help answer any questions about our mortgage program, how it works and what requirements you need. We'll also explain the alternatives if this isn't the right option for you.

NACA’s mortgage program is a great opportunity for low-income families who are looking for an alternative option. The NACA Home Buying Program can provide qualified applicants with the opportunity to purchase their own homes at competitive interest rates and terms.