Home Buying in New Orleans>Question Details

Abraham Walk…, Real Estate Pro in Metairie, LA

Do you want to know how to purchase a home in New Orleans with 100% Financing, No Closing Cost, No PMI, and?

Asked by Abraham Walker, Metairie, LA Mon Jul 7, 2008

No Application Fee? There is a Non Profit organzation located in the city that offer financing with No Down Payment, No Closing Cost, No PMI, and No Application. The organization is called NACA.

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BEST ANSWER
Hi, I am going through NACA right not for new construction. The program is legit but there is no such thing as a free lunch. Dont expect for anyone to hand you anything without working for it. I for one have NO PROBLEM with that. In fact I appreciate their services. It is not a scam and if you are on a tight budget then its quite the blessing. Closing costs for us, at a minimum through FHA were going to be $8000 on a $132,000 loan with 6% interest. I believe that brought our monthly payment with PMI, home owners insurance, and taxes to about 1100. Going through NACA our payment is $1052 with all of the above on a $155,000 loan. We were able to buy down our interest and will be paying the $50 fee for 7.5 years (no biggie, PMI was estimated at 10+ years/ $69 monthly). Does this make wonderful sense to anyone???? More $$$ for a cheaper payment...this comes from buying down your interest. I am recommending it to all of my friends and family. It's a great program, yes it takes a while and people arent always available when you need them but thats a small sacrifice when looking at the big picture. Now, if you want everything served to you on a silver platter, then this isnt for you but if your ready to work for your investment then I would give it a try. Also dont expect miracles, If you f*cked uo your credit dont expect for them to clean it up in a matter of months. No one can, you got yourself in to that mess....you get yourself out of it. Also , for those of you complaining about the $50 fee....why dont you actually post what the $50 fee is for? You gripe about it but if anyone ever finds themselves in the face of forclosure, your $50 contribution will help you pay your monthly payment for up to 3 months...thats even after you stop paying the $50. Over all, this program was a God send for us, not many people can say they are paying less then 4% interest on their mortgage.
3 votes Thank Flag Link Mon Jul 21, 2008
Abraham,

I want to thank you for posting this program and keeping up with the comments to handle any objections. I am not affiliate with NACA or have even studied their programs. But I like it when real estate agents invest time and interest to research any possible ways to help their clients and open up options for people who want to own their own home.

Every buyer's situation is different. Some are more established with their credits and savings so obtaining conventional mortgage is not too much hassle. Some have less than perfect credits and a little bit of savings so private financing could be a simplified route with no classes and not very much requirements.

And then, there are people who are not "poor"... they work, they pay rent, they pay landlords to maintain homes in livable condition, high electric bills for the rental home with out-dated AC unit..... I come across people like this and it is difficult for them to save just several thousand dollars for down payment and closing cost.

I actually just referred a few of my possible buyers to check with NACA... since it will take them time to either fix up credit or save money, I asked them to check out any programs possible for themselves and then make their own decisions about which way to go.

For some people, it is more important for them to be able to get into a home of their own. The cost of time or money is not even an issue for someone so determine to get away from where they are and to own their own home. People get credit cards at 29% interest rate, pay extra hundreds of dollars for cell phone over usage, and drink designer coffee at $5 a day. Why is loan origination fee, membership fee and other fees a deal breaker when it is for a house that they can live in comfortably?

Obtaining financing is not easy in these days. But there is more than one way to get financing if people were willing to look for it. Agents can become more helpful when they know about the client's situation and resources available to make the best match. I work with a few savvy agents who are always hungry for financing information, because if the buyer can not get financing, there is no sale, and no one will be benefited.

By the way, if you are familiar with NACA and looking to take on more clients and help along the way, please contact me. I am not an agent, but I send people to these programs sometimes.

Thanks,
Celine
1 vote Thank Flag Link Sun Jun 7, 2009
Two more things MARK....
1st
I never said or claimed that they FIX your credit...
2nd
I'm a realtor and I can't understand what's your beef with this organzation.
You can't find any program in the country besides Rural Development Loan that offer 100% Financing.

This organzation is unbelievable.

Could someone please point me in the direction of a program that provides 100% Financing for my clients?

I don't think there is one... but if there is...I'm all ears.
1 vote Thank Flag Link Mon Jul 14, 2008
If you have about a year or two and lots of flexibilities, then NACA is for you. I bought my home Jan 2011. It was a 2 year ordeal. I am sorry for those who have to use NACA to buy their home. Despite the pain it was well worth it. At least my husband got a lot of his financial act together and me too :-), but his was a great mess.

I work as an assistant to a previous NACA rep that now is a real estate agent. It takes our clients that use naca about a year to close. Most of them have to suffer until the closing date; but they still send us a lot of people because NACA is the only hope they have to ever buying a home. Many are always willing to give references. NACA is for those that are willing to pay the price in hard work and perseverance as well to repair their credit.

Some of our sellers don't like NACA because of the unpunctuality but they still deal with them because despite the loooooooong time they take, NACA is a sure thing for those that persists and do all the dreading things they ask for (lots of documentations and paper work.) Some seller send us people because they know that we can help them pass the NACA challenge and also willing to give references.

For us as a very small real estate office using NACA, we are unable to make a decent profit since naca has a lot of limitations. It takes a lot of work to be qualified by NACA. Most people don't want to do the work or don't have the time to get their file and all together. Anyhow, buying a home is not easy, even if you have a lot of money and can buy cash. We call most of our clients frequently, help them in every thing including cleaning their credit; we take them by the hand.

As for now we are restructuring in order to be able to help people and make some profit. But we will offer more alternatives to NACA for our clients. Also, most people that use naca is because of imperfect credit or they want no down, no closing cost and a very low interest rate. That is the very good part of the deal. Most people are very skeptical until they move into their new home or see their friends into one. They often say, if they can, I can. If you ask around you will find someone who bought with naca no far from you.

I do think that NACA does not take care of its employees. They are overworked and sacrifice their family time. They have a high turnover. The paid may be average considering the large hours they give.

Good luck in buying a home. If I could be of any help contact me at lorenvisaez@yahoo.com.
0 votes Thank Flag Link Wed Nov 23, 2011
I don't care about all the great things NACA is supposed to be doing to help people with home ownership. My husband and I were told by NACA that i did not have to be on the loan too but after getting all the paperw ork together, going into the office for the appointment we were told differently and treated very badly. In fact they never even looked over our paperwork. We set up another appointment with someone different there and my husband went alone this time. They asked for me and said they don't care what the state laws say but THEY say they want to pull my credit report as well. Why? When they are the ones who told us i could just tag along to the meetings to be an extra set of ears and to take notes. So already they lied and why does the credit matter when they are telling people they don't look at credit? They also make it seem like you can move anywhere, they never say it's just the lower income areas. To us they treat people so badly just because they are offering certain things. I would rather clean my own credit up and get a loan to purchase wherever we choose to live. And Mr. Marks well i know he is busy but he never responds to emails or calls because one less person doesn't matter to him. I honestly don't feel NACa is all they claim to be.
0 votes Thank Flag Link Thu Mar 18, 2010
I am really interested in the NACA program. We are first time home buyers with little to no money for a down payment. We are currently paying $1600/month for rent and looking to buy in Lakeview. I'm not concerned about the $50/month fee since we were quoted over $4000 for mortgage insurance upfront and then $100/month thereafter. The NACA $50/month sounds like a steal! We were told we needed to come up with over $17,000 upfront and a 3.5% down payment for a $250,000 house.

I was wondering can you still get a FHA loan for repairs if you buy a $200,000 house through NACA?

Please let me know if you know anything good or bad about NACA. I am questionable about the volunteer work you have to do 5 times a year.
0 votes Thank Flag Link Thu Jun 4, 2009
Thanks MJ for your comments. It's hard for me to explain how great NACA is to other people without them thinking it's a scam.

If it sounds to good to be true, why don't you give it a shot before you complain about it.

And what's your propblem Mark? This question was posted to help people but you have the same post about the $50 fee trying to discourage people from this wonderful program.
0 votes Thank Flag Link Tue Jul 22, 2008
there aint no such thing as a free lunch!

The consumer WILL pay, one way or another, as seen in NACA, they pay 50 bucks a month for years, and the lenders charge "regular" customers more to offset discounted monies provided to NACA

so, I stand by my comments

There aint no such thing as a free lunch
0 votes Thank Flag Link Tue Jul 15, 2008
From the website, it looks like an interesting organization.

If nothing else, I was impressed by this item on the page describing NACA's founder: "Marks' role as an aggressive crusader for reform of the powerful banking and lending industry has its representatives up in arms. On May 5, 1999 from the Senate floor, Senator Phil Gramm (R-TX), head of the Senate Banking Committee, attempted to portray banks as victims of Bruce Marks. Gramm described Marks as, "... someone who graduates from college, goes to graduate school, and goes to work for the Federal Reserve in acquisitions and mergers, quits and goes into business, spends four years harassing banks and bank presidents, and finally the bank (Fleet Bank) caves and gives them $1.4 million, gives them $200,000 to set up their organization; they now have twenty offices, lending $3.5 billion..." Senator Gramm continued, "There is a CRA protester who calls himself an "urban terrorist" who used those charges against a bank, harassed them for four years, went to a speech of the president of the bank (Fleet Bank CEO Terrence Murray) at Harvard University, disrupted the speech, made this man's life miserable for four long years." Bruce Marks wears this personal attack as a badge of honor."

That's the same Phil Gramm who proclaimed the US as "a nation of whiners" and said we're only in a "mental recession." Anyone who's so gotten under Phil Gramm's skin must have something going for him!
0 votes Thank Flag Link Tue Jul 15, 2008
Don Tepper, Real Estate Pro in Burke, VA
MVP'08
Contact
Eustis mortgage has 100% Ameri Dream
0 votes Thank Flag Link Tue Jul 15, 2008
I would like to think Mark for responding to this question.

Mark, Mark, Mark...
You really want to compare apples with apples. You pay Mortgage Orginator fees upfront and not month to month.
The $50 a month is similar to PMI not orginators fees.

Mark if you pruchse a Home with 100% Financing it would take 10-15 years to get the loan below 80% to cancel the PMI. Average PMI is between 50 - 150 per month.

Noone notices the fact that NACA is also giving a lower interest rate and the let you buy down your points below 1%. What other program(s) offer this service?
And...
Normal points buydown are only for 1/8 % of the rate NACA's buydown is 1/4%.

Can we please do a little more research before we criticize a program?

Anyone have anything good to say about the program?

Anyone interested in learning more about the program?

Anyone knows of any other programs that have benefits to fist time home-buyers?

This question was asked to get more information on ther programs available so I can help my client not to solicit buisness.
0 votes Thank Flag Link Sun Jul 13, 2008
BEST ANSWER
another thing, the max priced home you can buy with NACO is $384,936

A mortgage originator will generally charge 1% or less, which is $3849.00. NACA charges $6000.00 according TO THEIR WEB SITE

Gotta be kidding me!
0 votes Thank Flag Link Sat Jul 12, 2008
Ive read up on naca...fist off, This organization CANNOT fix your credit, they are not licensed to do so!
Also, NACA capital come from social shake down of rich white ceo's that dont have the balls to tell them to go to hell!

"Once you purchase your home, you will need to pay the Membership Fee, which includes the Neighborhood Stabilization Fund Fee,of $50 a month for a period of between five and ten years, depending on the amount of the mortgage"

50.00 x 10 years = $6000.00

I always like it when "non profits" charge consumers and dont have to pay income taxes
0 votes Thank Flag Link Sat Jul 12, 2008
Mr. Cockburn thank you for gracing us with a response but if you would do some research you would have read that this organization is not a FLY BY NIGHT SCAM. They have 33 offices over the U.S. and they are backed by Bank of America and Citigorup.
Yes they do charge you 50 bucks a month for 10 years. Can anyone tell me if this is less than PMI or more? Last I checked it's less than the average PMI.

And another thing...
They don't charge you a fee to FIX your credit. There is no way to fix your credit in a few days when it took you years to mess it up. They offer free service to help people get their credit in order. It's the only company that offers Character based lending. So even if you have bad credit they still can help.

I still don't understand why you are so defensive over a product that you haven't inquired about or researched to find out more info.

When I found out about NACA I didn't believe it either but that lead me to find out more information about it. Not say it's a scam so I could be lazy and not educate myself about it.

And another thing...
I'm using Trulia to educate consumers on other products that may be available and to educate myself on issues I do not know about. NACA and RD loans are the only products available in our market for NO DOWN PAYMENT.

So before you comment again please read up on the question because if you are as smart as you seem you would do some more research before you make comments on items you have no clue about.
Web Reference: http://www.naca.com
0 votes Thank Flag Link Sat Jul 12, 2008
There are several of these "non-profits" that have magically appeared around New Orleans. These people appear to help the less fortunate...but mostly the less educated. I am still trying to figure out who finances these "non-profits" for some are so politically connected I smell a post Katrina rat in their offices....they offer "help" by charging people for credit reports, etc, etc. when the "clients" have no way in a million yrs of qualifying to buy a snowball.

When the looters got done with my house the second time, I really thought all the scamsters were gone. Now the one's with the cheap polyester suits have arrived...giving people false hopes and dreams and driving them into a debt of proportions as happened in California.

But this is New Orleans...at the end of the day the money in the freezers of the minds will be discovered...and I truly hope these secretly funded through political means "organizations" will go the way of the floodwaters.

Please do not attempt to use Trulia to push your imaginary games of no money down....no this and that. It is wrong...and it hurts the true professionals who try so hard to tell people the truth.
Web Reference: http://iansellsnola.com
0 votes Thank Flag Link Wed Jul 9, 2008
I read the web info, and it does say that the buyer will need to pay 50 bucks a month for up to 10 years!

package the loan any way you wish, the buyer is still paying out of pocket to get the mortgage
0 votes Thank Flag Link Tue Jul 8, 2008
Daniel I'm glad you looked at the website.
But you obvisously don't understand the word NON PROFIT.
The organization will have to charge some fee to support their staff.

Have you ever purchasd a home with PMI tacked onto it?
The cheapest PMI I've seen is in the low 100's and you have to pay that fee until your loan get's below 80%.

Did you also read about NACA's interest rate being lower than MARKET interest rate by 1%.?
Did you also read about No Downpayment need?
Did you also read about the No Closing cost?

How is this organization taking money from the poor?
0 votes Thank Flag Link Tue Jul 8, 2008
No fees?? Read the elegibility requirements! LOL https://www.naca.com/members/eligibilityIntro.jsp

"Once you purchase your home, you will need to pay the Membership Fee, which includes the Neighborhood Stabilization Fund Fee,of $50 a month for a period of between five and ten years, depending on the amount of the mortgage"

That can be as much as $6000.00 plus $20.00 per year membership dues! LOL

"TANSTAFL" There aint no such thing as a free lunch!

What a scam! Just another way to take money away from the poor while blaming business institutions
0 votes Thank Flag Link Tue Jul 8, 2008
Tell me more, I am interested. Is it FHA? Do they have a website?
0 votes Thank Flag Link Mon Jul 7, 2008
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