Testimonials

Ten Steps Housing Services

Statistics

Results

NACA’s magic is apparent every time a declining community is transformed into a place of hope.  Traditional lenders look at lower income neighborhoods as high-risk liabilities, but denying them credit only reinforces a cycle of decay and disinvestment.  NACA sees these communities as opportunities to develop a new core of dedicated homeowners who will work tirelessly to better their surroundings.  Because NACA’s programs are focused on making people into successful long-term homeowners, its Members exert a stabilizing effect on their neighborhoods that provides a solid basis for their revitalization.

 

NACA’s program is designed to make homeownership a possibility for every working person.  With no down payment, no closing costs and a below-market interest rate, NACA’s mortgage product redefines “affordable.”  NACA applies a problem-solving approach to each Member; credit problems are seen as challenges to be resolved, not as excuses for denying credit. 

 

The long-term tax and investment advantages of purchasing a home are undeniable.  If someone is committed to living in an area for a period of time and is ready for the responsibilities of homeownership, there is no reason to throw money away on rent.  Homes are a unique investment that provide for the future and the present.  With NACA, tenants have a choice.

 

NACA’s revolutionary mortgage program is built on the thesis that the risk of default can be minimized by making loans that are sustainable in the long term.  To this end, NACA emphasizes affordability and preparation of the homeowner.  By using a Member’s current rent as a basis for computing an affordable housing payment, NACA ensures that its Members will not experience payment shock (i.e. an unmanageable increase from their rent to their monthly mortgage payment) and that they possess the financial discipline to meet their obligations.  Moreover, individual counseling helps resolve existing credit issues and other roadblocks to homeownership and provide the skills required for homeownership.  This commitment to the homeowner extends far beyond the purchase process, with ongoing education and counseling.  The Neighborhood Stabilization Fund can provide financial assistance to Members who encounter unexpected problems and involves fellow NACA homeowners in helping to get the Member back on track.

People come to NACA looking for the opportunity of their lifetime, not the chance to make a quick buck.  NACA responds with a commitment to every participant that they will be able to purchase a home if they continue to work with NACA.  For many NACA participants this may take more than a year.  The result is that very few participants leave the NACA program.  NACA builds on this commitment by developing a long-term relationship with its Members. In addition to the ways mentioned above, Members continue to be involved through a five-time-a-year activism commitment and through Neighborhood Stabilization Committees.

 

An important condition of NACA’s mortgage is that Members must live in the homes they purchase.  Unlike absentee landlords, homeowners have a strong and personal interest in their homes and their community.  Members who purchase multi-family homes will look for tenants that they are comfortable welcoming to their community, creating a shared sense of responsibility.

 

NACA’s Rehab program offers a tremendous opportunity for new homeowners to do renovations and redevelopment on favorable terms by rolling the costs into the mortgage.  In some cases, NACA requires renovations to bring a house up to a satisfactory state, which helps reduce surprise problems and expenses down the road.  In addition, renovations increase the value of homes and create a ripple of investment in the community.

 

Fundamentally, NACA creates community.  When NACA homeowners move into a neighborhood, they infuse it with a common sense of purpose.  By bringing people together, NACA creates a powerful core that can reach out to others and raise the expectation level.  These homeowners become part of a network for national change.  NACA’s Members have been essential in the fight against predatory lending and discriminatory banking practices.  Even more important is the profound effect NACA’s Members have on their local environment. Through Neighborhood Stabilization Committees, Members provide assistance to each other and create local initiatives that bring new life to the entire community.

 

 

 

They attest to the overwhelming success of NACA’s partnership with its lenders.  Bank of America commissioned a study of its branches that found that the overall satisfaction with the NACA program is 97%.  Moreover, 98% of the customers surveyed stated that they would use Bank of America again. 

 

Financial institutions often have limited success in obtaining low and moderate-income customers, particularly from minority communities.  NACA has been very successful in building trust with these communities, providing 66% of its loans to low-income borrowers and 79% of its loans to African-Americans.

 

NACA works intensively with its Members to prepare them for the mortgage application process.  They complete the NACA Credit Access stage, which verifies that they have the necessary documents and meet the underwriting criteria.  Loans go directly to the underwriter, and the NACA Housing Consultant can handle any follow-up.  As a result, over 95% of bank applications are approved, compared to the usual rate of 70 to 75%.  The high approval rating produces a positive halo for the lender.

The staff of NACA’s Neighborhood Stabilization Fund (NSF) regularly contact Members who are delinquent on their mortgage payments.  They work with the Member to arrange a payment plan, forbearance agreement, and/or financial assistance.  The lender’s servicing area works through the NSF staff, who handle the direct relationship with Members.  The servicing is therefore more effective and less costly to the lender.

 

Typical mortgage portfolios have maturities of less than seven years because many loans are repaid through refinancing or sale.  NACA homeowners are unlikely to benefit from refinancing and do not view their homes as short-term investments.

NACA’s program achieves incredible results.  Almost all of NACA’s borrowers are in their homes making mortgage payments – 99.75%.

When a Member cannot make their mortgage payments, NACA works intensively with the Member to sell their home.  NACA real estate agents help reduce the loss to the lender and provide an opportunity to another borrower.  In most instances, the lender has recovered their outstanding mortgage amounts and costs.

 

NACA’s up-front work allows the borrower to receive loan approval within two days of submitting the mortgage application.  Closings often occur within two weeks.  This quick turnaround encourages the real estate community to seek out further business with the lender.

Lenders are often criticized for unscrupulous lending practices and fail to meet their commitments to the communities they serve.  NACA’s program generates an extraordinary amount of positive publicity, and NACA’s partners have shared that acclaim.

 

As the NACA program works its magic on America’s communities, more working families become interested in the possibility of homeownership.  This positive feedback loop generates further business and home mortgage opportunities for its partners.