Is NACA right for you?


After talking to many borrowers and agents that have went thru the NACA experience there are several things that stand out.  Out of the two million NACA members, NACA has 60,000 mortgages.  That would mean that 60,000 out of 2,000,000 received a mortgage or 1 out of every 33.3 members.  Who are the 60,000 that received a NACA mortgage and who are the 1,940,000 borrowers that did not?


If you do not make a lot of money and the homes that you are trying to buy are inexpensive.

If you look at  Los Angeles County at the AMI, in many areas it is $69,300 dollars.  The average price of a home in Los Angeles is $686,500.  NACA looks for normal buyers with good credit history to have a 31% front end housing ratio or up to a 33% housing ratio if you have compensating factors like: a spectacular credit history, lots of money in the bank, long job history, etc.  If we take the 31% example above, you can spend $1790.25 for your mortgage payment, taxes, home owners insurance and association fee’s.  That would buy you between $200,000 and $295,000 depending on taxes and insurance and association fee’s.


If you have paid all of your bills on time and do not have any past due payments, judgements or charge off’s on your credit report that NACA pulls.

NACA does not make decisions based on credit score.  The issue is that almost everything that causes a  borrower to have a low score would be a problem with getting a mortgage thru NACA.  Buyers are told that the decision is not based on their credit score but it is based on everything that is on your credit report plus everything that your landlord tells them about your rental history.


If you are a NACA member is good standing with you yearly dues paid.


If you are a registered voter.

You are required to be a registered voter in order to use NACA.


If you are at risk of losing the home you already own.

NACA’s Home Save program has helped over 250,000 homeowners.  This is very impressive and I believe it is NACA’s best program.


You never plan to rent the property out.

NACA requires that you live in the property for as long as you have the NACA mortgage.


You understand that you may not be able to take out an equity line or second mortgage.

NACA put a lien on your home.  We have been told that it is $25,000 dollars via a NACA representative that was on a forum answering questions.


There are many sites that gives pro’s and con’s about NACA.  I was very surprised to see that NACA does not come up with Google reviews when you search for it.  I have never seen this before and that is worrisome to me.


Some of the good reviews we found about NACA:


Some of the bad reviews we found about NACA:


A medium review of NACA:


All in all, we recommend NACA if meet some or all of the following criteria:

You have a good credit history.

You have affordable housing in your area.

You have six month to two years to get thru the process.

You verify that there is a NACA home inspector working in your area.

You or someone you know is very good at paperwork.

You are patient.


Feel free to visit NACA’s site and decide for yourself.

Search Down Payments and Grant Locator
Search for down payment assistance and home buying grants
  • Use a comma in between multiple counties i.e. Anoka,Hennepin,Orange
  • Use a comma in between multiple cities i.e. New York,Minneapolis,Dallas,Portland
  • Check any that apply.
  • Where would you like your reports sent?