NACA Bank of America’s $20 Billion Affordable Mortgages

Neighborhood Assistance Corporation of America (NACA) and Bank of America

Neighborhood Assistance Corporation of America (NACA), in partnership with Bank of America (BOA), runs the nation’s largest and most successful no-down-payment mortgage program for low-to-moderate-income (LMI) homebuyers. 

NACA’s mortgage program demonstrates exactly what SafetyNet 2.0 is designed to deliver nationwide: a housing system that transitions families from renting into homeownership.

NACA’s program is designed to eliminate the four major barriers to homeownership: (1) savings requirement, (2) high interest rates, (3) restrictive underwriting, and (4) racial/financial bias. To date, Bank of America has committed over $20 Billion for NACA mortgages.

NACA’s “Best in America Mortgage” includes:
  • No down payment
  • No closing costs (Bank of America pays them)
  • Below-market fixed interest rate
  • No PMI (private mortgage insurance)
  • No fees
  • No minimum credit score requirement
  • Flexible underwriting focused on payment history

The NACA mortgage can be used for:

  • Single-family homes, Condos
  • Duplexes / Triplexes / Fourplexes
  • Mixed-use buildings
  • Manufactured & modular homes
  • New construction
HOT-PHA: Using Section 8 Vouchers to become a Homeowner

The Homeownership Through (HOT) Public Housing Assistance (PHA) is a transformative program developed by NACA for PHA Housing Choice Voucher (“HCV”) recipients (“Participants”).

The NACA HOT-PHA program allows Housing Choice Voucher recipients to use their voucher toward a mortgage!

  • The voucher payment goes directly to the mortgage lender, not a landlord.
  • Families can pay off their mortgage in 20 years or less.
  • No additional cost to the PHA.
  • A pathway to generational wealth.
Comparison Table — NACA vs FHA vs VA loans
Feature NACA FHA VA Loan
Down Payment $0 3.5% minimum $0
Closing Costs $0 (paid by Bank of America) Buyer pays all; seller may contribute Seller can contribute; otherwise, buyer pays
Interest Rate Below market fixed rate Market rate + FHA margin Competitive rates
PMI / Mortgage Insurance No PMI Yes — upfront MIP + monthly MIP for life No PMI, but includes funding fee (can be waived for disabled vets)
Credit Score Requirements No credit score requirement Usually 580+ Usually 620+
Debt-to-Income Flexibility More flexible — based on payment history Standard FHA ratios Flexible for veterans
Renovation Financing Yes — integrated rehab program (HAND) Limited (203k) Limited
Section 8 to Homeownership Yes (HOT-PHA Program) No Some PHAs support, but not built-in
Typical Buyer Savings $10,000–$25,000+ at closing, plus lower payments Higher upfront + monthly costs Great benefits, applies only to veterans
Who It Helps Most LMI families, urban buyers, renters transitioning to ownership Moderate credit borrowers Veterans & service members
Best Use Case Maximum affordability + lowest barriers Entry-level buyers needing 3.5% down Veterans eligible for $0-down

NACA (Neighborhood Assistance Corporation of America) places a $25,000 “soft second lien” on properties to enforce owner-occupancy.

How the NACA Model Fits into SafetyNet 2.0

SafetyNet 2.0 is built on one central belief:

Housing assistance should be a ladder into stable, permanent homeownership — not a trap of endless renting.

NACA is the closest real-world model of how a modernized housing system could operate under HomePit and SafetyNet 2.0.

Barriers to Entry

NACA wipes out the four biggest obstacles that keep low-income families renting forever:

  • Down payments
  • Closing costs
  • High interest rates
  • Biased underwriting & credit scoring

This fits SafetyNet 2.0’s goal of removing “structural traps” within the current assistance system.

Pathway to Ownership

NACA’s HOT-PHA program is a perfect example of SafetyNet 2.0’s “Ladder of Success”:

  • The voucher that pays rent now pays a mortgage.
  • Families transition out of subsidy programs within 15–20 years.
  • The same monthly assistance builds real equity instead of disappearing into a corporate landlord’s balance sheet.

This is exactly the type of win-win SafetyNet 2.0 promotes:
lower long-term government cost + increased family wealth + stabilized neighborhoods.

Community Stabilization

NACA’s approach helps counter the displacement effects of Wall Street-backed landlords:

  • No predatory fees
  • No rent inflation
  • No algorithmic pricing
  • No extractive eviction cycle

Conclusion

NACA’s $0-down, no-closing-cost, no-PMI mortgage program demonstrates exactly what SafetyNet 2.0 is designed to deliver nationwide: a modernized, empowerment-based housing system that transitions families from long-term renting into permanent homeownership.

Through below-market fixed rates, counseling, and Section 8-to-ownership pathways, NACA proves that affordable homeownership is achievable and scalable.

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