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How NACA Helps Buyers Get A Mortgage With Little Cash Up Front · Military Real Estate Rookie Show

• 0:00
  SPEAKER_00: Hello everyone, welcome to the Military Real Estate Rookie Show where we talk about real estate in ways that make sense.
• 0:07
  SPEAKER_00: Whether you're buying your first home, purchasing your next property, or trying to find generational wealth, this show is created to educate you on ways to do that.
• 0:18
  SPEAKER_00: I'm your host, Rena, Rena Barron, and today we're talking about a program that could open doors to home ownership for people who think they cannot qualify for a mortgage at all.
• 0:31
  SPEAKER_00: Let me ask you something.
• 0:33
  SPEAKER_00: Have you ever looked at your credit score and said, there is no way I can afford a home?
• 0:40
  SPEAKER_00: The bank would never approve me.
• 0:43
  SPEAKER_00: Well, or maybe you said you've been saving for a house, but every time you get a little money, guess what?
• 0:50
  SPEAKER_00: Something happens.
• 0:51
  SPEAKER_00: The car needs repairs and unexpected bills show up.
• 0:55
  SPEAKER_00: Or simply life gets in the way.
• 0:58
  SPEAKER_00: And then you hear that you need thousands of dollars, thousands of dollars for a down payment and closing costs.
• 1:06
  SPEAKER_00: Well, before you give up on owning a home, I want you to learn about a program called NACA.
• 1:14
  SPEAKER_00: NACA is the Neighborhood Assistance Corporation of America.
• 1:19
  SPEAKER_00: Today we're going to break down what NACA is and how it works and may benefit you and what you need to know before deciding whether it's right for you.
• 1:28
  SPEAKER_00: So let's get into it.
• 1:30
  SPEAKER_00: So, what is NACA?
• 1:32
  SPEAKER_00: Okay, so NACA is a nonprofit organization that offers home ownership programs designed to help eligible buyers purchase a home with affordable mortgage terms.
• 1:47
  SPEAKER_00: It's simple.
• 1:48
  SPEAKER_00: One thing that NACA does, they stand out is that their standard mortgage payments offer no money down, no lending closing costs, no private mortgage insurance subject to program requirements.
• 2:02
  SPEAKER_00: Now, that's worth paying attention to.
• 2:05
  SPEAKER_00: Don't you agree?
• 2:06
  SPEAKER_00: Traditional home purchases can require a substantial amount of money up front.
• 2:12
  SPEAKER_00: NACA may help reduce that barrier for buyers to qualify.
• 2:17
  SPEAKER_00: But let's be clear: no payment down does not mean no expenses.
• 2:22
  SPEAKER_00: So you need to start planning your finances because it can involve property taxes, home insurance, and inspections, movement expenses, utility, et cetera.
• 2:31
  SPEAKER_00: The goal is to understand the entire cost of home ownership, not just the mortgage payment.
• 2:37
  SPEAKER_00: So what you say if, what if your credit isn't perfect?
• 2:42
  SPEAKER_00: Well, this is part that gets people's attention, right?
• 2:46
  SPEAKER_00: They always, you know, say, hey, look, my credit is not too savvy.
• 2:50
  SPEAKER_00: Well, NAFTA does not rely minimal on credit.
• 2:53
  SPEAKER_00: They do not rely only on credit scores.
• 2:55
  SPEAKER_00: They look at your payment history, your income, your debt, your savings habit, and your ability to afford the proposed mortgage payment.
• 3:04
  SPEAKER_00: So your credit score is not just one thing that they look for.
• 3:08
  SPEAKER_00: However, that does not mean everybody gets approved.
• 3:11
  SPEAKER_00: You still have to demonstrate financial readiness, document your finances, work through the counseling process, and meet NACA requirements.
• 3:20
  SPEAKER_00: My advice: don't count yourself out before you understand the program.
• 3:25
  SPEAKER_00: Okay, guys?
• 3:25
  SPEAKER_00: And don't assume that a low credit score means that you do not qualify.
• 3:30
  SPEAKER_00: And you have to make sure that you have everything in order.
• 3:34
  SPEAKER_00: The goal is to become a homeowner who can comfortably afford the home, not simply someone who gets approved.
• 3:40
  SPEAKER_00: And that's the overall question.
• 3:43
  SPEAKER_00: You have to have a holistic part of that, not just say half and afford the payment.
• 3:48
  SPEAKER_00: Now, who could should we consider NACA, right?
• 3:50
  SPEAKER_00: NACA may be worth exploring if you're a first-time home buyer, a renter who wants to start renting, or someone who's just struggling to save for a down payment.
• 3:58
  SPEAKER_00: It may also interest military families, yes, and veterans who want to explore home ownership, options for after PCS, retirement, transition.
• 4:08
  SPEAKER_00: But here's an important distinction between NACA standard purchase program is designed for a home who intended to occupy as your primary resident.
• 4:17
  SPEAKER_00: You have to occupy it as your primary residence.
• 4:21
  SPEAKER_00: If you're interested in a duplex or multifamily, ask NACA whether the Pacific property occupied arrangement meets its current gallons.
• 4:30
  SPEAKER_00: You still probably could get it.
• 4:31
  SPEAKER_00: And if your goal is to buy a rental and move out and you don't never live in it, this is not the right program, right?
• 4:37
  SPEAKER_00: Real estate is not one fit, one size fits all.
• 4:40
  SPEAKER_00: Your strategy has to match your goals.
• 4:43
  SPEAKER_00: So this is not for investors.
• 4:46
  SPEAKER_00: However, you could ask NACA those particular questions.
• 4:50
  SPEAKER_00: Now, how do you get started?
• 4:51
  SPEAKER_00: You all you have to do is go on NACA.com.
• 4:55
  SPEAKER_00: And then step two is register for home buying workshops and learn how the program works.
• 5:01
  SPEAKER_00: Step three, start organizing your financial documents that may include statements, tax bank statements, and records of your monthly organization.
• 5:10
  SPEAKER_00: You still have to give that to them.
• 5:12
  SPEAKER_00: So just make sure that you're prepared to give those certain documents.
• 5:15
  SPEAKER_00: Step four, work with NACA Housing Counselor to review your finances and address any barriers to qualification.
• 5:22
  SPEAKER_00: You know, and establish what you can realistically afford.
• 5:26
  SPEAKER_00: And here's something I want you to remember: be patient.
• 5:29
  SPEAKER_00: Be patient with the process because I told you it is a program.
• 5:33
  SPEAKER_00: You may need time to organize your paperwork, improve your finances habits, and demonstrate that you can handle that proposed payment.
• 5:41
  SPEAKER_00: Use your time wisely and don't take unnecessary debt out or make major financial changes without understanding how that can affect your home buying process.
• 5:52
  SPEAKER_00: The most prepared you are, the better equipped you'll be to make that informed decision.
• 5:59
  SPEAKER_00: Okay?
• 6:00
  SPEAKER_00: So this is my real estate advice.
• 6:02
  SPEAKER_00: As a realtor who's serving Georgia and Florida, I want you to understand something.
• 6:08
  SPEAKER_00: Getting into a home is only the beginning.
• 6:10
  SPEAKER_00: You need to know what you're buying, what the neighborhood is like, what repairs might be needed, and whether the monthly payment fits into your budget.
• 6:20
  SPEAKER_00: A home can be a wonderful investment in the future, but an affordable home can become a financial burden.
• 6:28
  SPEAKER_00: So before you start looking at houses, understand your numbers.
• 6:32
  SPEAKER_00: What is your monthly income?
• 6:34
  SPEAKER_00: What are your existing debts?
• 6:36
  SPEAKER_00: How much will taxes insurance cost?
• 6:39
  SPEAKER_00: Do you plan to have emergencies and you have a saves account?
• 6:43
  SPEAKER_00: And do you have a plan for repairs?
• 6:46
  SPEAKER_00: And remember, a program that offers no down payment doesn't eliminate the need for financial preparedness.
• 6:53
  SPEAKER_00: Do your homework, ask questions, and make sure you understand the program requirements before making a commitment.
• 7:01
  SPEAKER_00: And if you decide to explore NACA, and you can also ask how the program coordinates with your real estate agent and what steps you should complete before touring properties or making an offer.
• 7:12
  SPEAKER_00: So you have to talk to your counselor that will walk you through those steps.
• 7:18
  SPEAKER_00: So, all right, rookies, here's your homework.
• 7:20
  SPEAKER_00: Visit NACA.com, learn about the home buyer workshop and find out whether the program could fit your home ownership goal.
• 7:28
  SPEAKER_00: Don't be embarrassed about your credit score or your frustration about saving money.
• 7:34
  SPEAKER_00: Stop you from exploring your options, get the facts, make a plan, and take the next step.
• 7:40
  SPEAKER_00: And if you're looking to buy or sell real estate in the Georgia, Florida area, I'll love to help you navigate through this process.
• 7:47
  SPEAKER_00: I'm Rena Barron, your realtor, and I can help you understand your options to connect you with trusted professionals when needed.
• 7:54
  SPEAKER_00: And if you're outside of Georgia, reach out anyway.
• 7:58
  SPEAKER_00: I may be able to connect you with other real estate professionals or walk you through the NACA program.
• 8:03
  SPEAKER_00: You know, if you enjoyed this step this today's episode, please follow me or subscribe to a Military Real Estate Rookie Show.
• 8:10
  SPEAKER_00: And my Instagram is Rena Barron Real Estate.
• 8:13
  SPEAKER_00: And you'll never know who needs to hear this.
• 8:16
  SPEAKER_00: So please share this episode.
• 8:18
  SPEAKER_00: Until next time, keep learning, keep planning, keep building, keep moving, keep your future together and one real estate decision at a time.
• 8:28
  SPEAKER_00: Can share this episode with everyone.
• 8:31
  SPEAKER_00: And I'm Rena Barron.
• 8:32
  SPEAKER_00: I'll see you on the next episode.
• 8:34
  SPEAKER_00: See you next time, my military real estate rookies.
• 8:38
  SPEAKER_00: And don't forget to share this episode again.
• 8:41
  SPEAKER_00: Okay.
• 8:42
  SPEAKER_00: Thank you so much.
• 8:43
  SPEAKER_00: And you guys have a great day.
• 8:44
  SPEAKER_00: I'll see you on the next episode.
• 8:46
  SPEAKER_00: Thank you.