The Background

Owning a home in Los Angeles can be very expensive even in the worst areas. Although the price of properties has come down in the last 5 years it is still tough for most families to come up with the 20% down payment to use a conforming loan. Without the 20% down payment you have the added cost of private mortgage insurance. This is the situation my brother and recently I have found myself in.

When my brother started looking at mortgages, about a year ago, he searched for first time buyer programs that assisted with the down payment and/or closing costs. These were available a few years back but have been put on hold by state, county, or city governments as housing bubble burst. While searching for these programs he came across the Neighborhood Assistance Corporation of America (NACA) website.

NACA offers a home purchase program with no down payment, no closing costs, no fees, and a 30 year low fixed rate mortgage. This was exactly what my brother was looking for. He attended the workshop, submitted all the documents, and setup an appointment with a counselor. However a few days before his appointment was canceled with no reason given. He has tried to reschedule but with no success.

After learning about the program and its potential I started looking into it myself. I knew my brother’s experience and there are many negative stories online about NACA. However the people that did get loans were very happy with the terms. If I waited another year I could put the 20% down but the question is would I want to? It is a lot of money to have tied up. I continued reading about the experience different people had and decided to sign up for the workshop. The  workshop is the first step in the NACA program.

Off to the workshop I go.

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