Success using NACA to purchase a home in Los Angeles?

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beachymama

LoanSafe Member
Jul 10, 2008
36
0
0
Los Angeles
Has anyone gone through the process this year? I heard it takes a year, but that realtors don't like to use offers from NACA or FHA in Los Angeles. Anyone with experience with NACA to buy a home in this competitive market of LA? Thanks!
 

beachymama

LoanSafe Member
Jul 10, 2008
36
0
0
Los Angeles
From what I have read: no down payment, no closings costs, no application fee, no private mortgage insurance and no perfect credit history. The interest rate is substantially below market. Is it too good to be true? I have 3.5 percent down for an FHA mortgage but the mortgage insurance is over $300 a month alone with the FHA for the life of the loan! That could be going to principal.
 

Evan Bedard

Call 1-800-779-4547
Loan Safe Mortgage
Aug 26, 2007
18,837
48
48
San Diego, California
www.LoanSafe.org
NACA's homebuying program is based on exception only and I personally have not see anyone here obtain a loan through them. Keep in mind that the maximum purchase price in Los Angeles (and many parts of Southern CA) is $400,000..


  1. Once you purchase your home, you will need to pay the Membership Fee, which includes the Neighborhood Stabilization Fund Fee,of $50 a month for a period of between five and ten years, depending on the amount of the mortgage. The Membership fee entitles you to not only NACA’s comprehensive counseling to assist you throughout the home buying and mortgage process, but also to NACA’s membership assistance for NACA homeowners that provides comprehensive foreclosure prevention assistance.
  2. No member of the household can have an ownership interest in any other property
    NACA focuses on people who have not been able to purchase a home. The program, however, is not limited to first-time homebuyers; you may participate as long as you do not own another home at the time of purchase. Current NACA homeowners must have lived in their home for at least three years and have been active participants in the NACA program to be eligible to purchase through the program again.
  3. Occupy the home for as long as you have the mortgage through NACA
    NACA believes that owner-occupants stabilize neighborhoods. Therefore, NACA requires that you live in your home for as long as you have a mortgage through NACA. Being an owner-occupant involves you in all aspects of the community because you own a piece of the community, not just real estate. NACA is very serious about Members adhering to the occupancy requirement. Therefore, NACA takes out a lien on the property—in addition to other enforcement mechanisms—to ensure that homeowners live in the home. This does not prevent you from selling your house for a profit, refinancing your house, or purchasing other property while continuing to live in the house purchased through NACA. NACA has the right to foreclose if you no longer occupy the home as a primary residence.
  4. Participate in at least five actions and activities a year in support of NACA’s mission
    Every Member is encouraged to contribute their unique skills to NACA and its mission. Many people say the NACA program sounds too good to be true. It is real because of the active participation of NACA’s huge Membership. Participation and direct action have made NACA successful and will continue to strengthen our neighborhoods and organization. There are numerous ways for you to participate:
    1. Join advocacy campaigns that may include protests, demonstrations, actions and/or engaging in litigation against persons or companies that discriminate against or victimize others;
    2. volunteer in the NACA office;
    3. participate on the peer lending committee; and
    4. assist other Members with the home buying process.