NECAC Continues To Help home-buyers
Despite COVID-19, the not-for-profit North East Community Action Corporation (NECAC) is still getting calls and working with people who want to become homeowners.
The agency has had three down payment closings since March. One has been scheduled for May and work has started on nine new applications.
“Buying a home is one of the biggest purchases people will ever make and with the coronavirus adding stress to the decision, we want people to know they can count on NECAC to help them through the process,” said NECAC Deputy Director for Housing Development Programs Carla Potts. “Our trained staff will help you avoid potential problems.”
NECAC offers a variety of homeownership and rehabilitation programs through partnerships with public and private partners. In Missouri and Illinois, the agency administers the USDA Rural Development 502 Loan Program.
“The best thing about it is there’s no down payment,” said NECAC Homeownership Programs Director Cheryl-Ann Phillips. “The loans are another option families in our area have to realize the dream of homeownership.”
As part of the 502 program, participants take homeownership classes that focus upon housing opportunities and financing, obstacles to home-ownership, record-keeping, understanding credit, the importance of cash flow, meeting with financial institutions, getting a loan, taxes and other topics. Applications
In Missouri, NECAC also administers the USDA 504 Loan Program. Homeowners may use the 504 loans to repair and modernize their houses. Participants must be able to repay the loans over 20 years at a fixed rate of one percent. Elderly homeowners may qualify through the grant portion of the program.
In 2017, NECAC was authorized by USDA to serve as an intermediary loan processor for the 502 Program in the three states. Participating so far are Central Missouri Community Action of Columbia, Caring Communities of Moberly and Koester Consulting of Zearing, Iowa. NECAC is working with other non-profit agencies that package the loans for homebuyers, reviewing loan applications and sending them on to USDA for final approval. Programs for existing homes include weatherization and Self-Help Housing.
“We know that in these tough times it’s hard to take that leap of faith and reach out for help,” Phillips said. “We understand, and we want home buyers to know that with us they can take their time, have all their questions answered and move forward without any pressure. We are there for them every step of the way. ”
More information is available by calling Phillips at 573-324-6622.
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