HIGHLIGHTS OF THE

NACA MORTGAGE PRODUCT

 

 

Purpose: Purchase

Purchase & Rehab*

Refinance (to save people’s homes)*

Refinance (for home improvements)*

* These options may not be available at every location.

 

 

 

DOWN PAYMENT:

None

 

CLOSING COSTS:

None

 

INTEREST RATE:

At market or lower

 

CREDIT HISTORY:

Not perfect credit

 

POINTS:

None

 

APPLICATION FEE:

None

 

P.M.I. (Private Mortgage Insurance):

None

 

HOUSING RATIO:

None

 

TOTAL DEBT RATIO:

Up to 40% single & 60% multi

!! Please Listen!!

To the Following Guidelines

 

 

1. Call this # 1-888-302-6222 to register for upcoming workshop.

2. Be present at the workshops and try to schedule 4 hours for this most important workshop. Before leaving the workshops, schedule a counseling session with Dawn or  Karen

3. Definitely make this appointment. However, if you cannot make your appointment, call three days before your appointment to reschedule at 410-783-0465.

4. Please remember after you are NACA-approved, you can then begin your search for the home of your dreams.

5. Be Patient. This is a great program.

 

Visit NACA on the web at www.naca.com

NEIGHBORHOOD ASSISTANCE

CORPORATION OF AMERICA

 

NACA’S BALTIMORE, MD AREA ELIGIBILITY REQUIREMENTS

The Neighborhood Assistance Corporation of America (NACA) is a non-profit neighborhood advocacy and housing services organization. NACA’s mission is to stabilize communities.

NACA IS AMERICA’S BEST HOME OWNERSHIP AND REFINANCE PROGRAM.

Before you can purchase a home or refinance using NACA’s services, you must meet NACA’s Eligibility Requirements. You should not make any offers to purchase before you have met these Requirements. NACA will not be able to help you if you present a purchase contract before you have met the Eligibility Requirements.

Once you have met the Eligibility Requirements, you can use NACA’s services to purchase the home of your dreams or to refinance your current home. The areas in which you can purchase or refinance a home are defined as Priority and Service Areas. For NACA’s Priority Area, these are no income limitations. For the Service Area, the income limitations are identified below.

Eligibility Requirements (for Purchase and Refinancing):

No member of the household can have an ownership interest in any other property.

Attend and graduate from a NACA-approved Home Buyer Workshop.

Be qualified by a NACA housing consultant for a mortgage you can afford.

Have not used a NACA mortgage product during the past three years.

Have a high interest rate, predatory mortgage or need substantial repairs (refinance only).

Occupy the purchased or refinanced home for as long as you own the home.

Become a member of the Neighborhood Stabilization Fund ("NSF"). The NSF provides financial assistance to prevent foreclosures. (Membership fee of $3,000 paid $50/month for five years from date of closing).

MAXIMUM PURCHASE OR REFINANCE:

The purchase price or refinance amount cannot exceed the following:

Single Family - $189,905; Two Family - $217,987; Three Family – $263,475; Four Family - $327,450

PRIORITY AREA( See map on the back for specific areas):

There are no income limits for households purchasing or refinancing in the following areas:

Parts of Baltimore City.

SERVICE AREA: (See map on the back for specific areas):

Households with incomes at or less than the amounts below can purchase or refinance within the following areas in addition to purchasing in the priority area:

Baltimore City and parts of Baltimore County.

 

Family Size:

1

2

3

4

5

6

7

>7

Income:

$44,180

$50,500

$56,810

$63,120

$68,120

$73,180

$78,250

$83,310

NACA reserves the right to change the eligibility requirements at any time.

NACA’S REVOLUTIONARY

MORTGAGE PRODUCT

 

NACA’s purpose is to change banks’ traditional lending practices and to make credit available to working people. Many working people must work more than one job to make ends meet. Often more than one member of the household must work. This makes it extremely difficult to save for home ownership. Sometimes, because of tight funds, people may have to choose which bills to pay first, resulting in a less-then-perfect credit history.

NACA believes that none of these issues should prevent a person from owning a home. Nonetheless, lenders have historically denied people mortgages because of lack of savings or minor credit problems. NACA has been successful in getting lenders to understand that these are unreasonable roadblocks that should not reflect on a person’s ability to purchase a home or their commitment to make mortgage payments.

NACA has agreements with a number of major financial institutions to provide the exceptional NACA mortgage product that helps overcome these roadblocks. Describe below are the highlights of NACA’s mortgage product that can make home ownership a reality for working people. There are many other aspects of the NACA mortgage product that are also extremely important but will be explained to you throughout the home-buying process.

 

ROADBLOCK: LACK OF ACCESS

SOLUTION: NACA’s mortgage product includes comprehensive education and counseling to assist you throughout the home-buying process.

ROADBLOCK: LACK OF SAVINGS

SOLUTION: NACA’s mortgage product does not require down payments or closing costs.

ROADBLOCK: PRIOR CREDIT PROBLEMS

SOLUTION: NACA’s mortgage product does not require perfect credit.

ROADBLOCK: AFFORDABLE MONTHLY PAYMENT

SOLUTION: NACA’s mortgage product utilizes your budget of monthly living expenses to determine what you can afford.

HOW MUCH WILL IT COST YOU TO BUY A HOME?

Traditional Mortgage Products vs. NACA Mortgage Product

 

 

 

YOUR COSTS

Traditional

Mortgage

(assume 5% down)

NACA

Mortgage**

(no down payment)

I. Pre-Mortgage Application

Offer (earnest money deposit)*

Home inspection

Your attorney

P&S deposit ($80,000 price)*

 

$500

$200

$0

$1,500

 

$500

$200

$0

$0

 

 

II. Mortgage Application

Application Fee

 

$250

 

$0

 

 

III. Pre-Closing Costs

Hazard Insurance (annual)

 

$400 - $1,200

 

$400 - $1,200

 

 

IV. Closing Costs

Appraisal

Credit report

Balance of down payment ($80,000 price)

Points

Document prep fee

Title insurance

Private mortgage insurance

Lenders attorney

Other fees

 

$250

$45

$2,000

$1,600

$175

$225

$800

$600

$350

 

$0

$10

$0

$0

$0

$0

$0

$0

$0

 

 

IV. Prepaids (Escrows)

PMI

Home owners insurance (two months)

Real estate taxes (two-four months)

Pre-paid interest (1-30 days)

NSF

 

$250

$70 - $200

$100 - $400

$10 - $1,000

$0

 

$0

$70 - $200

$100 - $400

$10 - $1,000

$50

 

 

TOTAL COSTS

$8,825-$11,045**

$790-$3,060**

**The costs will vary depending on the type of property you purchase (i.e. single or multi-family), the property taxes and homeowners insurance in the area you purchase, and the day of the month you close.

*The earnest money deposit and purchase and sale deposit will be applied to the prepaid and escrows.