Anyone used NACA to get a mortgage?

**Sari** · 02-01-2006, 09:13 PM

They have some sort of process to help you sort through things such as budgeting, paying off some old debt, saving for a down payment, etc. and help you get mortgages at lower interest rates than you could get on your own. Anyone heard anything about them?

**canadian gardener** · 02-07-2006, 11:44 PM

not a thing, but I'm Canadian, so it may be an American company.

I'd be concerned about what all that help will cost, and for how long you'd be indebted to them and what kinds of rates they charge. There is always fine print.

Who pays them, and where do they make their money would be the first thing I'd ask, the next would be what's it going to cost me?

**canadian gardener** · 02-07-2006, 11:46 PM

and I'd be checking with them with the Better Business Bureau and also checking up with some local banks to see what they have to say about them.

If they are a mortgage broker, then that is a legit business, and I highly recommend mtg brokers, they've saved dh and I lots of money,

BUT we usually find one on some recommendations, and we usually check em out first.

**Sari** · 04-10-2006, 09:31 PM

Just to update, they seem like a great organization! I went to a workshop that introduces you to the process. They are a non-profit organization that fights predatory lending practices and they are for the stabilization of neighborhoods. At the end of the process, you get a mortgage for 1 point below prime (currently around 6% I believe), no down payment, and their services/process doesn't cost you a dime except to pull your credit report 1-3 times during the process - and they only ask for the $10.00 that they have to pay themselves. It sounds great.

**missymomof3** · 04-11-2006, 02:35 PM

I read through their website and this is the only red flag I noticed as one of their requirements : Become a Member of the Neighborhood Stabilization Fund (“NSF”):
The NACA program provides extensive post-ownership assistance including counseling, payment arrangements and financial assistance. The NSF helps Members overcome such economic difficulties as job loss, medical problems, and loss of rent, which could result in foreclosure and the loss of your home. The NSF Membership fee is $50 a month for a period between five and ten years, depending on the amount of the mortgage.

**Sari** · 04-11-2006, 02:55 PM

That protects the buyer (you) in case you lose your job, have medical problems, whatever VALID reason that causes you to not be able to make a payment, and you have to appeal to a panel of other home-owners to get them to say ok, you can have this payment made for you. You also are not paying that insurance the bank makes you get when you don't put 20% down (that insurance alone can be a few hundred per month).