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America's Best Mortgage!
One Mortgage Product - $10 Billion Committed
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4.25%
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Fixed 30 Year (as of 11/16/2009)
No Down Payment, No Closing Costs
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PROPERTY RENOVATION:
Fix it before you move in
The NACA Rehabilitation Program - Home and Neighborhood Development (“HAND”) enables NACA homebuyers to complete necessary renovations or rehabilitation before moving into their new home. The purchase price and cost of the rehab work is included in one mortgage with one monthly payment.
Kinds of repairs
Repairs crucial to the integrity of your home such as replacing outdated heating systems, upgrading electrical, and repairs to the structure due to termite damage can be addressed through the Purchase and Rehabilitation Program. Generally, these items are identified in your Home Inspection Report.
Deferred payments
Under the NACA Purchase/Rehab option, if you are making substantial repairs and cannot live in the property during the rehab, you may not have to make a mortgage payment for a period of up to six (6) months. Your deferred payments can be added to your loan and your interest rate reduced; thus your monthly mortgage payment will not increase. This is not available elsewhere.
HAND Assistance
NACA’s HAND Department provides assistance thorough the renovation process. While you are responsible for the renovation, HAND can assist you with identifying contactors, identifying needed repairs and processing payments.
Rehab Amount
The amount of your rehab loan is dependent on the amount of mortgage you can afford or are qualified for in addition to the property’s as-improved appraised value.
For a detailed description of the process of securing and completing a rehab project through NACA:
- Rehab Process:
- Contractor Selection
- Rehab Administration
- Completion of Repairs/Renovation
REHAB - HOME AND NEIGHBORHOOD DEVELOPMENT (HAND)
NACA’s mortgage product includes a Purchase/Rehab option that allows you to buy a home and fix it up at the same time utilizing NACA’s unprecedented rehab program. While it may be difficult to find a home that is just right, this program provides a unique opportunity to make necessary improvements to your home. Because NACA does not want you to be financially burdened by unanticipated lump-sum costs for future repairs, if the Home Inspection indicates existing or potential problems, NACA may require renovations. The costs of renovations can be added into your mortgage and in many instances the seller may be willing to contribute funds rather than completing the repairs themselves.
This may be your only opportunity to get financing for home improvement work in the near future, so it is important to carefully consider making improvements at this time. In addition to making your home more comfortable, renovation can increase the rental value of your other units and the future sale price as well. It is important to consider the long term operating costs of maintenance and energy use for your home. Improvements such as insulation, window replacement and upgraded HVAC equipment will often reduce a home’s monthly operating costs by reducing energy consumption and service calls.
If you are making substantial repairs and cannot live in the property during the renovation, you may be able to defer your mortgage payments for six months. This prevents the overwhelming burden of paying both the mortgage payment and rent, but also prevents the mortgage payments from increasing once the renovation is completed. NACA’s incredible financing permanently reduces the interest rate by an additional 3/8% and the deferred mortgage payments are added to the loan. This keeps the mortgage payments the same as they were before the deferred payments. At the mortgage closing, the money for the rehab work will be escrowed by the closing agent or held by the lender. This ensures that the agreed upon renovations are completed.
Renovations and repairs can be difficult and stressful. Factors such as age, neglect and hidden conditions often complicate a renovation. NACA’s HAND department provides administrative and technical assistance of the renovation process to ensure that it adheres to NACA’s procedures. For this work, and for access to the HAND program, NACA receives a fee. The fee is based on the cost of the renovation and may be included in the mortgage. There will be out of pocket expenses such as property inspections (paid directly to the home inspector) and possible costs for a work write-up that describes the scope of work on extensive projects. A Construction Manager may also be required on projects the HAND department deems necessary. You may contact the HAND department for the specific fees. You will be responsible for the cost of the home inspection and any work write-up regardless of whether you actually close on your loan and complete the renovation. Inspection fees and Work Write-Up fees are non-refundable.
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