By: Sandra Rodela
In an effort to help local homeowners, the Neighborhood Assistance Corp. of America (NACA) will be offering low-interest mortgages from August 27-31 in West Palm Beach during their “Save the Dream” tour. However, as the Sun Sentinel, reports, acquiring the loan is quite rigorous since the qualifications supersede those of a conventional mortgage loan.
With a target demographic of low-to-moderate-income families, NACA is offering no-money-down loans with no closing costs, as well as a guaranteed fixed interest rate of 1% under the prime marketplace rate.
To qualify, potential borrowers must adhere to a gauntlet of requisites, such as compulsory attendance to select NACA workshops used to gauge their proficiency with homeowner responsibilities. If they meet the requirements for the loan, borrowers must pay a monthly membership fee of $50 for five to 10 years. It is also mandatory that the borrowers actually reside in the home they are purchasing. NACA verifies this by taking out a lien on the property for the life of the loan. Additionally, they must participate in a minimum of five NACA sponsored activities per year
The length of the process varies based on the financial stability of each potential borrower. Those with unsatisfactory credit scores go through a type of probationary period where they may have to provide documentation that proves that they are changing their spending habits and not defaulting on other loans.
Although the process seems burdensome, NACA wishes to impart on the public that the organization’s purpose is not to create difficult measures by which borrowers must adhere. NACA spokesman Darren Duarte told the Sentinel: “First and foremost, we’re a nonprofit mortgage broker.”
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