Buying a House Through NACA

"We don't just want to get you into a house...we want to get into a house the right way." - Frankie Patrick, Housing Consultant for NACA

Those words still ring loud and clear in my head when I think about that early Saturday morning in February 2009. My husband and I had dropped the kids off at his brother's house and taken the long drive out to where NACA was hosting a workshop for first time home buyers. The sun hadn't risen yet and the parking lot was still empty when we arrived at our destination. It was obvious that we had gotten there way too early, but we both knew that attending the workshop was the first step in a process that could ultimately change our lives.

WHAT IS NACA?

The acronym stands for Neighborhood Assistance Corporation of America. They are a non-profit organization that offers affordable mortgages to first time home buyers and assists in restructuring existing loans for homeowners trapped in high interest mortgages or in danger of foreclosure,a.k.a. Save The Dream.

Below is a video with more information about NACA, followed by my personal experience going through the NACA process. I've also included a link to their site at the very end of the post.

At the end of the home buyer's workshop, my husband and I were assigned to a housing consultant and given a list of documents we should have ready for our initial home buyer counseling session.

When our session ended with Mr. Patrick, we left his office carrying a shorter-than-expected to-do list. We were mystified by the fact that NACA didn't even consider our credit score in the lending process but instead used our credit report to see if we had the kind of debt that could result in a property lien or perhaps interfere with our ability to stay current with a mortgage. We had student loans to pay back and that was it.

It took roughly two weeks for our application to go through underwriting and come back approved. Once approved, it took only four weeks to find a house, get a contract on it and close on our property. If you have never purchased a home before, I will tell you right now, that is fast! The process is not usually that quick for most people going through NACA, but my husband and I had spent the previous three years recovering from personal setbacks, paying off medical bills and trying to meet the rigorous, and unreasonable, pre-qualification standards set by the banks. Our "act" was so polished by the time we set foot in the NACA office that there wasn't a single aspect of the purchasing process we were not prepared for. Also, I knew that Mr. Patrick was extremely busy, so I made sure to stay in contact with him (sometimes by phone, more often by e-mail) to keep our names, and all tasks concerning our file, fresh in his mind.

I do want to mention at this point that you don't have to be 100% ready to buy a home when you start the NACA process. The best part about meeting with your housing consultant is that you will get a list of specific items you need to work on before you can qualify for a loan. This "road map" will allow you to focus your time and efforts into matters that directly affect your ability to buy a home.

Long story short, we moved into a brand new house for just under two thousand dollars (to cover property taxes and a house inspection). There were no closing costs, no down payments, no fees, the builder even bought us out of our lease (no, that cost was not pumped back into the mortgage) and best of all, our interest rate is locked in at 2.3% on a 30-year mortgage.

For more information about NACA, and to find a workshop near you, please visit www.naca.com. Remember that while each person's experience with the program may not be like mine, your time and energy will be rewarded in the end.