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NACA QUALIFICATION CRITERIA The NACA Mortgage is our answer to the huge sub-prime and predatory lending industry. NACA has conclusively shown that when working people get the benefit of a prime rate.

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NACA's home buying process is not based on credit score. It is a character-based loan product. Therefore, even those with poor credit are encouraged to work with NACA, as they will receive comprehensive financial counseling and be put on a path to homeownership.

No minimum credit score. NACA credit requirements make homeownership possible and affordable for borrowers with poor or limited credit. With traditional financing, borrowers with low credit scores are often denied loans or pay high interest rates.

Potential NACA Program downsides include a longer and more rigorous mortgage process, a financial reserve requirement, property price limits and property location limits. Borrowers should understand both the positives and negatives of a NACA mortgage to determine if it is the right program for them.

The NACA program uses debt-to-income (DTI) ratios to ensure borrowers have affordable mortgage payments in proportion to their income. The program uses two DTI ratios: Housing Ratio: Borrowers' mortgage payments may not exceed 33% of their gross income.

Total Debts to Your Gross Income: Your total monthly debts consisting of your mortgage payment plus liability payments (i.e. car loans, credit cards, student loans, etc.) cannot exceed 40% of your gross income (exceptions up to 43% are considered with strong compensating factors such as paying a higher rent).

Started in 1988, NACA has a tremendous track record of successful advocacy against predatory and discriminatory lenders as well as providing the best mortgage program in America with $10 billion in funding commitments.

Your maximum mortgage amount with the NACA Mortgage combines the purchase price and any rehab escrow which cannot exceed the conforming loan limit of $484,350 in most areas and $726,525 in high cost areas with considerably higher amounts for multi-family properties.

As a general rule of thumb, your total monthly debt payments — including your future mortgage payment — shouldn't exceed 40 to 43 percent of your gross monthly income. This is known as your debt-to-income ratio or DTI. Also, NACA limits borrowers' mortgage payments to 31 percent of their gross monthly income.

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© Copyright 1997-2025
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Form Packages
Adoption
Bankruptcy
Contractors
Divorce
Home Sales
Employment
Identity Theft
Incorporation
Landlord Tenant
Living Trust
Name Change
Personal Planning
Small Business
Wills & Estates
Packages A-Z
Form Categories
Affidavits
Bankruptcy
Bill of Sale
Corporate - LLC
Divorce
Employment
Identity Theft
Internet Technology
Landlord Tenant
Living Wills
Name Change
Power of Attorney
Real Estate
Small Estates
Wills
All Forms
Forms A-Z
Form Library
Customer Service
Terms of Service
Content Takedown Policy
About Us
Blog
Affiliates
Contact Us
Privacy Notice
Delete My Account
Site Map
Industries
Forms in Spanish
Localized Forms
State-specific Forms
Forms Kit
Legal Guides
Real Estate Handbook
All Guides
Prepared for You
Notarize
Incorporation services
Our Customers
For Consumers
For Small Business
For Attorneys
Our Sites
US Legal Forms
USLegal
FormsPass
pdfFiller
signNow
airSlate workflows
DocHub
Instapage
Social Media
Call us now toll free:
+1 833 426 79 33
As seen in:
  • USA Today logo picture
  • CBC News logo picture
  • LA Times logo picture
  • The Washington Post logo picture
  • AP logo picture
  • Forbes logo picture
© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232