When you start searching for a home, it’s important to keep an open mind and look for properties that fit your NACA Qualification requirements. You may use any real estate agent not removed from the NACA program or we can refer you to a NACA In-House Agent (“IHA”). The IHA are experts in the NACA program and can facilitate the counseling and mortgage process. As buyer’s agents, your IHA will represent your interests in finding the right house at the right price including addressing any repairs or renovations. Some outside real estate agents may need to attend a NACA training if they’re unfamiliar with our program. Once you’ve found a home, you must immediately obtain a Property Specific Letter through your Member Portal or by contacting your NACA Counselor to verify that you’re qualified to buy the home. Your real estate agent will then help you make an offer and negotiate as needed including responsibility for addressing repairs.

The Purchase and Sale Agreement (P&S) is a very important contract. It binds you and the seller to execute the transfer of the home at an agreed price under specific terms. You and your real estate agent will negotiate with the seller/listing agent about who will be responsible for any necessary repairs and determine the amount of any seller contributions.

Prior to signing the contract, you need to contact your NACA Counselor and provide them a copy of the Multiple Listing Service (MLS) and the amount you are considering to offer the seller. This is to confirm that the home price is within your approved maximum mortgage amount which may change due to interest rate shifts. After careful consideration, you can accept and sign this important contract (Note: NACA does not accept P&S Agreements signed electronically by the buyer. The seller may provide an electronic signature).

You are responsible for paying any penalties arising from a P&S Agreement, regardless of the actions of NACA or the lender. To avoid extra costs, we strongly recommend that your contract adhere to the guidelines below.

Items to include in your P&S Agreement:

• Property Condition – Require satisfactory NACA-approved home and pest inspector(s). This includes time to turn on utilities and undergo other evaluations or work write- ups if the home requires a major renovation.
• Closing Time frame – At least 35 days to close from the date of the executed contract. At least 45-60 days to close for properties requiring significant renovations, as identified on the home inspection, from the date of the executed contract.
• Settlement Agent – Approved NACA and lender settlement agents to provide settlement services (note: settlement agent fees and closing costs are paid by the lender only if NACA approved settlement agent).
• Closing – Closing at a NACA office to provide support and address any issues.

Items NOT to include in your P&S agreement:

• Penalties – Charges or penalties for closings past a certain number of days from the executed contract (per diem).
• Earnest Money Deposit – Loss of your earnest money deposit if the property does not appraise for the agreed purchase price or if your mortgage application is denied.

Once the P&S is executed (i.e., signed by you and the seller), submit it immediately not to exceed 24 hours, through the Member Portal. If you have difficulties, your real estate agent can also submit it through their NACA Portal.

The property you want to purchase must undergo an inspection to determine if the home is in acceptable condition. Existing repair conditions such as code, safety, health, structural, mechanical systems and preventative maintenance needs often require correction in order for the home to qualify for purchase. Thus it must be inspected by a NACA-approved home and pest inspector. NACA’s Home and Neighborhood Development (HAND) department works with you to assess property conditions and assist in addressing required repairs.

Time is of the essence to submit your bank application in order to close by the agreed deadline in your Purchase & Sales contract. You need to update your documents in the Member Portal (i.e., paystubs, bank statements, rental verification, and any other required documents) and then request an immediate appointment with your NACA Counselor. Your NACA Counselor will work with you to be approved for NACA Credit Access with such approval based on NACA’s sole determination that you have met the program requirements. Once you are NACA Credit approve, you can submit your bank application to the participating lender through the Member Portal.

To be approved for NACA Credit Access, you’ll need to make sure of the following:

• Your required savings amount is maintained (i.e. Payment Shock)
• Your income is not reduced
• Your debts are not increased
• Payments continue to be made on time
• You adhere to other NACA requirements

NACA’s Mortgage department will facilitate the underwriting and processing of your loan at the lender. Because of all the pre-bank application work, there should be few lender conditions. Participating lenders approve virtually all the mortgage applications. During this time period you should focus on:

• Finding home insurance and providing proof
• Finalizing all bids and completing a rehab budget if applicable
• Doing a final walk-through of the property to make sure there are no damage, you are satisfied with any agreed upon repairs, it is clean, and vacant if required.

NACA and the settlement agent will coordinate your closing at a NACA office. The settlement agent will tell you about all costs due at closing, such as prepaid taxes and insurance due at the closing and any other required items. You will need to bring a certified check made out to the settlement agent for these costs.

Your closing will involve you and any co-borrowers. You can also expect the seller, the lender’s attorney or settlement agent, your attorney (if applicable), your real estate agent and the listing agent. You will have to sign a mortgage, promissory note, and many other documents. If you have any questions or problems, your NACA Counselor, real estate agent and other NACA staff can help you answer or address them.

Congratulations! You will receive the keys and are now a NACA homeowner with the Best Mortgage in America!

NACA’s membership provides free post purchase assistance through NACA’s Membership Assistance Program (“MAP”). Making the transition from renting to owning may require significant sacrifices and changes in your spending habits. You will no longer be able to rely on a landlord to arrange necessary repairs. You will need to make your mortgage payments on-time. NACA provides Members with comprehensive post purchase assistance to help you adjust to the financial responsibilities of being a homeowner. MAP has trained and specially dedicated staff ready to provide comprehensive counseling to prevent financial difficulties and, where necessary, to get you back on track. Members also have access to financial assistance takes the place of expensive private mortgage insurance.

The assistance described below is provided to you as long as you have the NACA mortgage:

• Budgeting and counseling;
• Mortgage modifications to address changed financial circumstances (i.e. reduced income);
• Forbearances to address temporary financial difficulties;
• Financial assistance for approved homeowners that encounter financial difficulties;
• Real estate services to sell your home;
• Communicating with or addressing issues with the lender; and
• Additional homeowner and neighborhood services and advocacy.

NACA is working to provide other types of assistance and services for NACA homeowners.

Remember To Participate!