Real Estate News - Maryland, Virginia, Washington DC

NACA Program Interest Rates

Interest rates for the NACA Program were 4.375% as of April 21st, 2011.

I'm back from NACA Program training in Delaware and learned an extensive amount about the program.

• You can buy down your interest rate to .625% . A break even analysis should be done to see whether this is worth while. It seems as if you are going to stay in the home 7+ years it may be worth buying your rate all the way down to the lowest interest rate.
• There is NO Mortgage Insurance
• There IS a monthly fee of $50.00. Considering the interest rate and $50.00 fee in comparison to the Mortgage Insurance, I thought that this sounded like a pretty good deal.
• You must commit to volunteering in NACA programs.  This is limited to a minimum of five activities per year.  It may include answering phones, stuffing envelopes, making calls or other activities.
• You must stay in the home you purchase with a NACA loan for a minimum of 3 years (unless there are extenuating circumstances, which they must approve). If you don't there is a $25,000 prepayment penalty.
• Purchase caps range from $362,000 to $420,000 depending on the area you are purchasing.
• Owner Occupied Only.
• Payment Shock Prevention (you must demonstrate that you are paying the same in rent currently or that you can save the difference between your current rent and the amount of your new principle,interest, taxes and insurance (PITI).