Can I renovate a property through NACA?

Want to rehab a property? NACA’s mortgage product includes a Purchase/Rehab option that allows you to buy a home and fix it up at the same time utilizing NACA’s unprecedented rehab program. While it may be difficult to find a home that is just right, this program provides a unique opportunity to make necessary improvements to your home. Because NACA does not want you to be financially burdened by unanticipated lump-sum costs for future repairs, if the Home Inspection indicates existing or potential problems, NACA may require renovations. The costs of renovations can be added into your mortgage, and in many instances the seller may be willing to contribute funds rather than completing the repairs themselves.


This may be your only opportunity to get financing for home improvement work in the near future, so it is important to carefully consider making improvements at this time. In addition to making your home more comfortable, renovation can increase the rental value of your other units and the future sale price as well. It is important to consider the long term operating costs of maintenance and energy use for your home. Improvements such as insulation, window replacement and upgraded HVAC equipment will often reduce a home’s monthly operating costs by reducing energy consumption and service calls.

No payments during six-month renovation period 

If you are making substantial repairs and cannot live in the property during the renovation, you can defer your mortgage payments for six months. This prevents the overwhelming burden of paying both the mortgage payment and rent, but also prevents the mortgage payments from increasing once the renovation is completed. NACA’s incredible financing permanently reduces the interest rate by an additional 3/8% and the deferred mortgage payments are added to the loan. This keeps the mortgage payments the same as they were before the deferred payments. At the mortgage closing, the money for the rehab work will be escrowed by the closing agent or held by the lender. This ensures that the agreed upon renovations are completed.

Rehab admin costs

Renovations and repairs can be difficult and stressful. Factors such as age, neglect and hidden conditions often complicate a renovation. NACA’s HAND department provides administrative and technical assistance throughout the renovation process to ensure that it adheres to NACA’s procedures. For this work, and for access to the HAND program, NACA receives a fee of three percent of the cost of the renovation that is a rehab expense and is included in the mortgage. There will be out of pocket expenses, such as property inspections (paid directly to the home inspector) and possible costs for a work write-up that describes the scope of work on extensive projects. A Construction Manager may also be required on projects the HAND department deems necessary. You will be responsible for the cost of the home inspection and any work write-up regardless of whether you actually close on your loan and complete the renovation. Inspection fees and Work Write-Up fees are non-refundable.

Kristopher Fraley , Realtor

A few years ago a serendipitous event(purchasing a home through the NACA program with a 0% 30 year fixed interest rate) inspired me to become a licensed real estate agent in the DC, Maryland & Virginia area, and I love it! There is nothing greater than giving back and its a fantastic process that I feel lucky to participate in. With so many money hungry sharks preying on innocent people in the real estate industry, I feel honored when people trust my team to help them obtain the best terms on a mortgage possible. I can be reached by emailing