Have you been considering getting a NACA home mortgage do you want to know if the no money
down is really too good to be true well stick around because today we'll be discussing the
pros and cons of using a naca home mortgage and what that process looks like stick around
Hi everyone welcome back to my channel it's me Jazzy Mac it's so nice to be back in the flesh
with you all as some of you know i just had a baby and i finally had a chance to just do my hair
put on a dab of makeup and i'm just so excited to talk about the home buying process that's a
part of the series that we've had going where we've been talking about credit we've been
talking about getting collections removed getting approved for mortgages some of them no money down
no minimum credit score and so this is just a continuation of the previous video that i
did where i talked about some of the different types of mortgages that you can apply for and
specifically we're going to talk about the naca mortgage because this is a very popular uh program
that people often go through that does not require um any down payment you can get a neck a mortgage
with no down payment and no minimum credit score but there are a few other things that you need
to know about so let's just back it up and let's talk about nakam and what it is so neca stands for
the neighborhood assistance corporation of america they are a non-profit group that uh specializes
in helping home buyers that don't presently own a home step into home ownership um it's not for
people that um currently own a home or are trying to purchase a second property they're very strict
about that so in order to be eligible for naca um you cannot be a current homeowner now if you've
owned a home in the past and maybe you sold it you lost it to bankruptcy whatever the situation
is if you've previously owned a home and you don't presently own one now then you still would qualify
you just can't currently have a home that you own so let's get into um the pros and cons of using
a naca home mortgage and also just so you know i put down below some information about
naca if you wanted more information just about the program or if you wanted to attend an actual
naca webinar i did put that information below um and i also put the the home buying kit
and the credit kit down below as well for those of you that want help cleaning up your credit um
so that information is available to you so let's jump right into the
pros so as i mentioned the pro for neca the first one is going to be no money down there is
no requirement for a down payment um nor do you have to pay mortgage insurance so no down payment
no pmi is required those are instant money savers so that's definitely a benefit
uh the second thing that is a pro for naca is there are no closing costs
again another money saver less money out of your pocket at the closing table so that's also a good
thing third thing low interest rate naca offers an interest rate that is as cheap as
0.125 percent um i think i said that wrong zero one two five percent interest rate so they have
a very cheap interest rate one of the cheapest on the market most people are going to come in at you
know maybe a 3.25 or you know if you go through a credit union you may pay 1.75 interest rate
for naca they're offering less than a one percent interest rate a zero one two five percent interest
rate so that is also going to be a money saver um and something that you'll want to consider
the other some of the other benefits um are going to be the no minimum credit score
um naca doesn't say oh you have to have at least a 620 or a 580 uh similar to
you know the the fha or um you know a conventional loan for naca there is no minimum credit score um
what they will do in place of checking your credit is they're going to check your payment history
and they're going to also do something um called a borrower's evaluation uh where it's just kind
of like a case-by-case basis where they ultimately evaluate um not just your payment history but any
delinquencies you've had you know um they're gonna look at your your credit mix your account mix and
they're going to make um just a case by case sort of decision on um your credit situation so just
because you have a low credit score does not mean that you're out of the running you know you can
go in there with the 500 and still be a candidate and still be considered for a naca home mortgage
and some of the other things if you don't get the cheapest interest rate you can do what they call
buying down the mortgage rate the mortgage interest rate which means you kind of pay
a little bit of money up front to pay down your mortgage interest and that's very beneficial also
and again there are you know no credit limits but also no income limit and so
even if you don't make a ton of money you can still be eligible to get a naca home loan
and in addition to getting that home loan they also offer the possibility of you getting a rehab
loan so perhaps you want to buy a fixer-upper there will be money included in your mortgage
uh to budget out the cost of you know any sort of project that you would want to do to bring
the house to your liking so those things are all great you know those things of course they even
got me excited i was like wait why didn't i go through mecca um however there is a little bit
of a downside to using a naca home loan or getting a naca mortgage um i have some friends that have
gone through this and they all say the same thing um in that it is a very lengthy approval process
um as i've said in one of my other videos when i closed on my house we closed in 10 days um
and we had that fast track application approval included in our bid that we would submit to
different sellers and that's what made our offer so attractive because we told them we can close
in 10 days well with naca that's not going to happen um you're typically going to have to
allocate maybe several months for how long it will take for you to ultimately close
and that is due to there being several workshops that you have to attend um some of the workshops
that you're going to have to go through are going to be a home ownership workshop um you
will also have to go through a financial workshop sort of like a you know a budgeting workshop
um there is a ton more paperwork that you are going to be required to submit um even including
a cash flow history that where you're going to be responsible for writing out how you sort of
spend your money over a certain period of time um some of the other cons is going to be um you have
to have a financial reserve um meaning a certain amount of money set aside in your bank account
to go toward your mortgage payments or whatever your estimated mortgage payments are going to be
and if you can't prove that you have that amount of money and this is before your offers are
accepted this is you know pre-approval you're gonna have to provide that you're gonna have a
certain amount of money in your bank account and if you can't then that could sometimes
work against you um going back to this being a time intensive application process um that also
could make your offers to when you submit an offer on a house that could make your offer
just not attractive because people know that when they see naca it's going to be a lengthy
sort of closing process it could be several months some buyers are willing to wait um
other buyers are like nope i'm going to go to the people i'm going to accept the offer of someone
that can close in 30 days or that can close in 60 days or whatever the time difference is
um so again that's something that you know as you're weighing whether or not you want to get a
neca mortgage that's something that you definitely want to consider um especially if you have like
a target move-in date or just a target date when you want to purchase the home that is something
that you definitely want to be cognizant of and something that you have to keep in mind um
some of the other cons of having a naca mortgage is necklace only available in certain areas
um there are certain states where naca has like a priority list and then like in certain
uh geographical areas and so sometimes a place that you may want to purchase a home does not
participate in naca so that's also something that you'll have to kind of research as you go through
this this program and make sure that your area is being serviced by naca and some of the other
cons are the property ownership restrictions which means that the property has to be owner occupied
you can't buy a home move out and then just let your family members live in the house it has to
be occupied by you the buyer at all times um and this also cannot be a home that is purchased for
investment purposes it cannot be just a secondary home it can't be a rental unit it can't be
any of that it has to be owner occupied at all times um and then i think what some people may
say is um you know it's not necessarily a con depending on what type of person you are but
it can be something that would make certain people back out of this program and that is the homeowner
volunteer requirement yes if you want to get a neca home mortgage um they've got all these
great benefits however you do have to commit to volunteering for at least five um five different
uh community sponsored events per year that is every year it's not just the first year um every
year you are required to attend five different community events and those could look like just
volunteering you know for a couple of hours in a naca office you could leave some type of peer
you know educational um seminar or something you know it's not like building a home for
habitat for humanity like where you're there all day long you know some of the volunteer activities
may be really really fun you know it could just be really simple things that are just an hour
long but you do have to have five of those events um that you attend yearly because this is a you
know a community back sort of you know non-profit program and so what you take out of it they want
to ensure that you put that back into the program itself so those are just some of the things that
you can kind of like consider when you're doing like the pros and cons of if you want to go
conventional if you want to go fha perhaps you want to go va if you're a military service member
versus doing neca now again naca's it's an awesome program that saves you a lot of money
you know um perhaps you you just started working at a job and you don't have a ton of savings you
know you're still working on your credit whatever i mean naca could be a really great alternative
um depending on your economic situation so i definitely would recommend that if you're a
first time home buyer or if you're recovering from a bankruptcy from years ago naca is definitely
a program that you want to check out and you definitely want to compare it to other programs
um and other you know such as the fha versus conventional so i hope that helps um i definitely
have more information um below in the description box just about naka in general if you guys have
any questions about the naca process um you know anything related to home buying
um or getting approved for a mortgage please don't hesitate to reach out and ask me those questions
tell me what comment you know in the comments what you know i can do a follow-up to what videos you
guys want to see it's been just a pleasure to be able to share this information and it's always
my pleasure my honor my privilege to see some of you just walking into homeownership and saying
jazzy thank you for all the advice or thank you for just like you know being my cheerleader like
i am 100 your cheerleaders so if you haven't already go ahead and like share and subscribe
this video and tell your friends about it and until then i will see you guys later bye