Cherise Litt…, Home Buyer in Greenpoint, Brooklyn,...

Does anyone have experience or knowledge about the NACA homebuying program? Is it reputable or a scam?

Asked by Cherise Littlejohn, Greenpoint, Brooklyn, NY Tue May 4, 2010

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Loren’s answer
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 live in the Augusta, Georgia area and the local NACA program here helped my sister who has awful credit get a loan at no money down, no closing costs, no pmi insurance, 100% vested loan at 3%. She was approved for their maximum amount of $200,000.00 and did not have to live in a certain neighborhood. She was approved in 2 months and we couldn't beleive it. I am going to go through the program because the people at that office are professional and represent this company well.
1 vote Thank Flag Link Sun May 23, 2010
Naca used to be great to use back in 1999 I can't say the same for now . Yeah they get you going with the no money down and everything however they fail to tell you during the seminars that even if you miss 1 payment on anything you will not be allow to continue through the program and must wait 12 months before purchasing a home. Which really suck they wait until your first intake appointment to share the bad new after you paid th $30 plus dollars to use the services that include the credit report. You better off going to your local bank to apply for a mortgage trust me. They would rather look at your payment history than your credit score sad. I never going to recommend anyone to these folks it's not worth it come out better saving on your own.
One big ole meds theses people are!!!
0 votes Thank Flag Link Tue Jan 13, 2015
I live in Texas and I purchased a home a year ago through NACA. Like a lot of people I thought it was a scam. I was suspicious of everyone I spoke to and did a lot of research online and by talking to "real estate professionals." Here's what I found out. Those who say NACA is a scam either don't know how the process works or had a very bad experience with the organization. It's that simple.

I can tell you that everything was not perfect in my experience. There were multiple problems during the process. But in talking to friends, neighbors and family members who bought homes over the past year or two; I discovered most of these were not unique to NACA. Though there were plenty of things that were. I won't bore you with them here, but most of them were related to communication and paperwork. But looking back on it all, I'll likely use NACA again. But I will come at it with a much more solid plan and be prepared for the realities of how the program works.

In the way of background; I have a good job, good credit and I had a small bit of money in the bank. I was looking for a reasonably priced home in a good neighborhood. It took some time but I got exactly what I was looking for. My house is new, in a small single family neighborhood and close to work and entertainment. NACA didn't care what I bought as long as it fit my maximum purchase price and was in their territory. Which in my case, was pretty much anywhere I wanted to go in the tri-county area.

Those who say NACA is the "middleman" are right. But so are the commercial mortgage companies, the USDA, the FHA, the credit unions, the online mortgage companies and local bank branches. No one simply goes into the back room and brings back a bag of cash to let you go buy a house. That's why they're called mortgage brokers. There are tons of them, but at the end of the day, there aren't that many banks that actually hand out the funds. So the rage over the fact NACA gets funding from banks is a false argument.

As to the issue some will raise about the information NACA gathers; again if you do the research, you'll learn NACA doesn't gather any more information than the other mortgage lenders. In fact, if you have a credit card or a even checking account at your local bank, it's likely those companies have just as much information on you. Probably more.

Also remember, every local NACA office is different. Some are well staffed some aren't. Some have extremely friendly, hard working people. Some don't. Some can get you in and out fast. Some can't. My local office isn't in the best part of town and their original place was a little shabby. But so what? It's no different than any other service oriented place you might choose to do business with. And once I closed on my home I didn't have to go there anymore.

Also remember NACA will only let you buy what you can afford. They will make you formulate and stick to a budget and save the money you need to make your mortgage payment. And if you don't have the financial ability (not necessarily credit score...) to purchase a home, you can't use their program. But if a bank, credit union or commercial mortgage company is reputable they won't take you either. But the difference is that NACA will work with you to get everything your credit in better shape, establishing a pattern of saving, helping you pay down your debts and only then will you start working on finding and purchasing a home. That takes time no matter what. Meanwhile, the other companies will laugh you out the door and warn the other companies around town about what a deadbeat you are.

And no. I don't work for NACA or anything that's related to them. I wanted to buy a home. I wanted to do so at a price I could afford. I did my research, asked around, went to workshops and decided to give it a try. If I backed out, I was only out the few dollars it took to join NACA as a member and the money for the credit report.

Over a year later I'm still in my home. I have a conventional 30 year, fixed mortgage. It comes from the same bank that a lot of people use everyday. These days I try to get friends and family to listen to my experiences when they decide to buy a home. None will listen. None will visit their local NACA office. Why? I can only speculate the whole experience of how (and why...) NACA works is so different, so out of the norm to "the way it's always been done" that it's simply too uncomfortable for most people.

And that's fine. Not everyone likes, understands or can stomach the program. I almost couldn't. My realtor definitely couldn't. She started bad-mouthing my decision so we parted company and dealt directly with the seller directly. I then made sure to stay in contact with my NACA mortgage counselor.

In the end it worked for me. It MIGHT or MIGHT NOT work with you, but you should really investigate for yourself because NACA is so weird and different, you will mostly get conflicting messages online.
0 votes Thank Flag Link Sun Jul 10, 2011
NACA? The only people or homeowners who are receiving "help" from this organization are, long deadbeat, no paying, clearly in default, many months, even years in arrears, minority "homeowners". If you doubt me, consider the fact that my wife and I spent some three days in the "aromatic", dank arena, donated by degenerate L.A mayor, Antonio Villarigosa, to these charlatans, awaiting something even resembling a re mod on my Wachovia mortgage. Good luck, after waiting in tight quarters, and eating $5.00 hot dogs, with other hopefuls, we finally met with our supposed bank representative. After day two and then later armed with new information on day day three, we were denied, based upon our equity position in our home. repeatedly, we witnessed B of A and Wells Fargo customers, who were literally drowning in arrears being offered 2% back loaded payments and supposed relief. The ringleader of this brigand of "community activists", even admitted to ACORN members being on site. If you are still not convinced, in exchange for your "salvation", you are required to attend and be available for any and all future rabble rousing that these shysters organize and call on you to engage in on their behalf. Run from these people like you are on fire, and they are carrying lamp oil.
0 votes Thank Flag Link Thu Jun 2, 2011
naca is a scam they promise alot and have NO ability to follow thru . The people who work there are rude and act like they hate their job and that is when you can reach them. You do what they ask but ti takes them so long to get back to you by then you will loss your home like we did!!!!!!!!!!!!!!!!
0 votes Thank Flag Link Tue May 24, 2011
anybody who uses the augusta naca office needs to step back and look at everything your signing and beaware that after you purchess your home you must continue to meet the volunteer requirments or you will be in breach of contract and you know what happens when you breach any contract. look at the time you have to vouenteer and multiply that by lets say $7.50hr then multiply that by the number of people that purchsed through naca, who look at all that free labor. They gave me thier requirments and i took that to several people i know in the banking industry and in the end if you can meet naca's requirments you can meet just about all other banks requirments.
0 votes Thank Flag Link Mon Dec 20, 2010
Some of the answers here seem like they came from NACA employees...hmmm.
0 votes Thank Flag Link Mon Dec 20, 2010
im a former naca customer, what you need to really look at is the 5 times a year you have to volunteer for the length of your mortgage. If you dont meet those volunteer requirments you are in breech of contract.I was dealing with the augusta ga office who lied and lied to me then refused to answer my questions about the lies. I called to make a complaint they gave me the CEo office number to file the complaiant but guess what he's in jail and the number is disconnected.Your conselars are salespeople who make their paychescks by selling home loans, the more they sale the bigger thier checks, so guess what most of them try to use the used car sales approach.
0 votes Thank Flag Link Mon Dec 20, 2010
Hi Cherise,

I am a potential buyer who first found out about NACA 3 years ago from a friend who had a friend that had used the program. It is not a scam, it is a program that has made a positive name for itself. I immediately worked to get qualified with NACA but haven't bought a house because I simply have not found anything that I like. I have been in contract for 3 properties with NACA as my mortgage financing but the deals fell through for one reason or another.

The thing with NACA is that it takes a lot of time and patience to get all the paperwork you need to get qualified. And you have to live within a budget. Additionally there is alot of turnover there and the workers get swamped with mortgage applicants and modification requests....like I said i've been dealing withthem for 3 years!

You are also limited by NACA on how much you can spend for a house. The amount depends on how many units. Check the website for info http://www.naca.com


I'm still psuedo looking for a house witht he intent on using NACA. While it can be a huge headache sometimes, I think the benfit of no down payment, no closing cost, and no PMI are well worth it. Good luk!
Web Reference: http://www.naca.com
0 votes Thank Flag Link Wed May 5, 2010
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