Home and Neighborhood Development
NACA’s Home and Neighborhood Development (“HAND”) department is designed to support affordable homeownership through property assessment of pre-existing property types by identifying code, safety, health, structural and mechanical system deficiencies using home inspections and other applicable evaluations to determine how the cost of repairs will impact a Members affordability.
NACA understands that purchasing a property is more than buying a home and paying the mortgage on time. Where many homebuyers dream about owning a home, they often do not realize that necessary repairs, renovations and ongoing maintenance costs can drain their bank accounts and sap the joy of owning a home.
NACA’s HAND Department provides guidance and assists with helping a Member and their Mortgage Counselor with a better understanding of how a selected property fits within the Members budget for both immediate repairs and maintenance expenses. Repairs related to code, safety, health, structural or major mechanical defects may be required, and those repairs will have to be addressed to support purchase eligibility. With the support of HAND’s Repair and Rehab Specialists a Member can have a home that meets their household needs and is within their budget by avoiding financial hardship due to expensive repairs and high maintenance costs after closing.
Eligible Members can seek to add a Rehab Escrow to their loan to allow them to purchase a home in need of repairs such as structural defects, replacement of major mechanical systems or upgrading plumbing or electrical needs they may not be able to afford. Additional renovations, or “Wish List” improvements may also be added as an option to update and aged property or to add additional bedrooms or bathrooms to support the household’s size. NACA’s Rehab Escrow provides Members with better options when it’s difficult to find a property in their price range in good condition.
If a rehab escrow is not desired or an option for financing repairs is restricted due to qualification limits, a Member can negotiate for the Seller to address repair conditions before the loan closes to meeting property eligible requirements for NACA’s Best in America Mortgage.
Property Qualification Steps & Timeline
Purchasing a home can be overwhelming but NACA’s HAND department works with Member’s every step of the way to help qualify their selected property for purchase. HAND offers weekly live webinar presentations to help educate Members and their real estate agents about HAND property qualification and rehab escrow requirements, along with important mortgage processing timelines.
HAND will expect to work directly with the Members on the loan and only work with real estate agents when additional support is necessary. Below are the steps for the HAND Property Qualification:
- NACA Qualified – HAND works with Qualified and closed Rehab Members only.
- Property Qualification Webinar – Members need to attend a HAND webinar before starting their Housing Search process.
- Select Property Inspector – Research and select an available Property Inspector before beginning Housing Search process.
- Purchase & Sales Contract Terms – When negotiating a contract, make sure to negotiate time necessary to conduct a property and pest inspection.
- Scheduling a Property & Pest Inspection – Upon executing a Purchase & Sales agreement, inspections should be scheduled within 24 hours and taking place within 3 to 4 days.
- Inspection Attendance – NACA requires at least one Member in the household to be present at the time of the property inspection.
- HAND Inspection Review – The Inspector will upload a completed inspection.
- NACA Repair List (NRL) – A NACA Repair List created and emailed to the Member and their real estate agent.
- Repair Negotiations – Upon receipt of the NACA Repair List, the Member has 3 to 4 days to negotiate final terms with the Seller.
- Seller Negotiated Repairs – The Seller should be negotiated to complete repairs using licensed professionals.
HAND is available Monday through Friday, from 8:30 AM to 6:00 PM central standard time. To reach a HAND representative, call NACA’s main number at (425) 602-6222 and select option 5 to be connected to the HAND operator. HAND can also be reach by emailing [email protected] and include the Member’s full name and NACA ID in the subject line.