The Neighborhood Assistance Corporation of America Helps Homebuyers in Missouri

First time home buyers in Missouri have something to cheer about: buying a home without savings just got a whole lot easier thanks to a new program by The Neighborhood Assistance Corporation of America (NACA) that offers 30 year mortgages with no credit check and no down payment required.

The St. Louis Post-Dispatch reports:

“No savings, no problem” isn’t something you’ll hear from most mortgage lenders. But there are ways for moderate-income people around St. Louis to buy a house without a big down payment or heavy closing costs, even with some old scars on a credit report.

That doesn’t mean it’s a good idea. People who are just scraping by may be better off renting while they get control of their finances.

The Neighborhood Assistance Corporation of America, Beyond Housing and government agencies in Missouri and Illinois all have ways for people without substantial savings to buy houses.

NACA is offering market-rate, 30-year mortgages with no down payment or closing costs in St. Louis. The organization promises not to look at the buyer’s credit score. Instead, it will look at the steadiness of the person’s income, and their record of paying bills over the past year or two.

That means an older foreclosure or a bankruptcy, which might close the door at other lenders, won’t close it at NACA. Its rate on 30-year mortgages last week was 3.65 percent — about what a person with good credit and a down payment could land at other local lenders. It doesn’t require “private mortgage insurance,” which drives up the monthly payment on other loans with a low or no down payment.

What’s the catch? There’s a limit on the home purchase price — $215,000 in eastern Missouri and $200,000 in the Metro East. Also, NACA makes applicants sit through counseling and training sessions.

NACA wants a record of steady income for the past 12 to 24 months. That means no more than one month of unemployment. They’ll also look at your record of paying your bills on time over that period, with an emphasis on paying the rent.

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