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An affordable mortgage product goes a long way towards making low and moderate-income borrowers into successful homeowners.  NACA’s innovative leap, however, is to pair its mortgage product with a free comprehensive housing services program that emphasizes an individual relationship with each customer.  This relationship services two critical roles: it enables NACA to insure that its Members purchase a home they can afford and develop the commitment and financial management skills to keep it.  NACA reinvented the process from outreach to ownership, designing a ten-step system that no other mortgage lender or organization has implemented.  This provides the key to NACA’s revolutionary program, which allows it to make homeownership a possibility for every working person. 

NACA’s program reaches low and moderate-income working people in communities that traditional lenders have avoided or been unable to penetrate. By working with churches, community organizations and employers, NACA targets its outreach to specific neighborhoods.  Once NACA has established itself in a community, its satisfied members spread the word about the dream of homeownership.  People who might never have considered traditional lenders frequently approach NACA to inquire about purchasing a home.

 

NACA’s state-of-the-art interactive voice system enables potential customers to learn about the program, determine their eligibility, request information and sign up for workshops.  They can access information particular to each of NACA’s offices nationwide.  NACA is able to process thousands of phone calls a week and schedule hundreds of workshops a month.

Homebuyer education must be personal and timely.  Instead of one-size-fits-all workshops, NACA relies on individual counseling and education as the basis of its customer relationship.  After an initial workshop that introduces them to NACA’s program, potential homebuyers are welcomed into the NACA community as Members, given a comprehensive workbook, and assigned a Housing Consultant.  The Housing Consultant guides the Member through the NACA program step-by-step, assisting with credit issues, determining what they can afford, providing counseling, and developing the Member’s financial management skills.  The emphasis throughout is to make the Member an expert on homeownership.

The NACA Qualification process ensures that Members are ready and able to purchase a home.  Unlike traditional lenders that use standard criteria and formula, NACA is able to explore each individual’s willingness and ability to assume the responsibility of homeownership.  NACA evaluates credit, savings history, job continuity, personal circumstances and neighborhood commitment to determine whether a member should be NACA Qualified.

 

Once Members have been NACA Qualified, a second workshop outlines the issues involved in searching for and purchasing a home.  Since home buying is an infrequent event in any individual’s life, NACA does not expect its Members to be experts on the purchase process.  It supplements its comprehensive education with ongoing advice and assistance.  The Housing Consultant reviews purchase and sale contracts, home inspections and mortgage documents.  NACA’s sophisticated technology and computer applications allow its Housing Consultants to provide timely and accurate counseling throughout the mortgage process.

Finding the right home and negotiating its purchase can be extremely tricky. Many brokers will attempt to take advantage of novice homebuyers who are excited about the opportunity to purchase a home.  The vast majority of real estate brokers and agents have a legal responsibility to represent the seller, although very few of them disclose this fact to the buyer.  NACA offers every member an opportunity to use a buyer’s agent who will represent their interests and assist them in the negotiation of a purchase contract. 

After negotiating a purchase and sale contract, NACA’s Members undergo a Credit Access approval stage to verify that they still meet NACA’s Qualification criteria, have maintained their fiscal discipline, and the property adheres to NACA’s requirements.  NACA then originates the mortgage and assists with the mortgage process to ensure that the application goes smoothly.  NACA’s careful development of its Members results in a mortgage approval rate of over 95%.  Closings occur in the NACA office, so that Members have an advocate present who can address their concerns.

NACA’s commitment to its members extends beyond the closing, with an extensive post-ownership program that addresses many of the obstacles that Members need to overcome.  The assistance provided includes budget counseling, credit payment assistance, financial assistance, landlord education, and other counseling.

 

NACA provides seminars and educational forums to its Members on issues such as property tax abatements, budgeting, home maintenance, and landlord issues.  For example, Chief Justice Daher of the Boston Housing Court has led seminars in his courtroom for hundreds of NACA Members who own multi-family homes.

 

All NACA homeowners participate in the Neighborhood Stabilization Fund (NSF).  The NSF helps Members negotiate forbearance agreements and resolve issues they have with their mortgage payments.  If Members are unable to make payments they must work with a Housing Consultant to identify the problem and work out a solution.  A peer committee of fellow homeowners can approve the Member for financial assistance.