Friday, June 22, 2018

An Overview Of The NACA Lenders Framework

By Melissa Rogers


Home ownership is often regarded as the ultimate achievement in life by most Americans. Sadly, a considerable percentage of the population still stay in rental homes as mortgage facilities are often out of their financial reach. Banks generally restrict lending to applicants with good credit ratings. For years, Americans in the low income bracket and those whose credit reports are not positive have turned to NACA lenders for their home ownership financing needs.

NACA is an American nonprofit organization that finances home ownership for low earning Americans who have a hard time accessing credit from standard banks. It offers interest rates that are fixed in addition to eliminating the age old requirement of down payments on mortgage applications. Bruce Marks, its CEO, founded the organization in 1998.

The lending framework that the organization is built upon often draws condemnation from established American banks. This is often attributed to the fact that it primarily lends to high risk customers. A vast proportion of Americans whose loan applications get approved often score between 600 and 750 in credit ratings. NACA, on the contrary, generally accepts borrowers whose ratings are below 600.

Ordinary banks generally obsess about profit, something that the organization is not focused on. Its primary focus is on providing credit to low income earners. During you application, you will get a lot of advice on which kinds of property to buy, albeit at the best interest rates in America. However, the organization will require you to participate actively in community advocacy. In a way, this translates to social and political advocacy.

There are several criteria that one ought to meet in order to be considered for lending. For starters, all applicants are required to have no property. This is aimed at weeding out applicants who may be out to finance additional property to use as rentals or vacation homes. Secondly, the property that one intends to purchase must be situated within a state where the agency offers its services.

At this juncture, it would be prudent to take note of the fact that the organization is not present in every state in America. Once a customer purchases his house, he is supposed to live in it till he finishes paying off his mortgage. There is a cap on the prices of houses covered under the program too. It would be impractical to finance million dollar homes for applicants whose incomes are nowhere near the servicing capability for such mortgages.

Statistics indicate that the bulk of NACA borrowers over the years have been aspiring home owners. They mostly approach the organization after suffering repeated rejections by everyday banks. At the present, the number of Americans who have successfully fulfilled their home ownership ambitions stands at over two million.

Upon getting his mortgage, a homeowner may go back for regular advice at no cost. One can use the internet to check if his state is eligible for the service. If you have long suffered rejection from banks, you finally have somewhere to turn to for all the help you need.




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