Z – How To Get 0.0625% Fixed Interest Rate Through NACA Program

The NACA buy down is the best in the nation, by far. Nothing else even comes remotely close.

NACA Interest Rate Buy Down: This is a real life example on how to get the 0.0625% interest rate, lowest by law. 1% of the LOAN AMOUNT, NOT PURCHASE PRICE (also called “one point”) reduces the borrower’s interest rate by 0.25% for a 30-year loan. One point reduces the borrower’s interest rate by 0.50% for a 15-year loan. The power of the buy down is jaw dropping eye opening unreal. Member can contribute up to 7 points with their own money to the buy down. Seller can contribute up to 10 points to buy down. ALL seller paid closing costs can go to buy down.(Remember, you pay no closing costs through NACA- This is extremely powerful) Any additional money available will go to lowering the principle loan amount with lender matching grant if qualified(under 100% of median area income)- For DC/Rockville/Silver Spring/Frederick area this is 105k~ per household. Depends on the city you want to live in. Baltimore/Howard County/Annapolis/Columbia/Towson area is 87k. To find which MSA(Metropolitan Statistical Area) your city falls within, and the median incomes of those areas, please visit here: https://www.ffiec.gov/pdf/msa16inc.pdf 2018 update: https://www.ffiec.gov/pdf/msa18inc.pdf

These numbers are from 2016. They have slightly increased as of January 2019.

https://geomap.ffiec.gov/FFIECGeocMap/GeocodeMap1.aspx NACA DC/MD/VA starting interest rate with no buy down as of last week was 3.625%. 3.625%= 14.5 points as each point is .25%. The lowest interest rate allowed by law for citi mortgage is 0.0625%. Yes the decimal point is in the right location. That is 1/16th of 1%.(essentially 0%).

Remember NACA offers 100% financing with no down payment required.

30 year fixed loan example.

Purchase price: 300k. Each discount point is 3000. Seller is paying 3% closing costs(9000) which is 3 points. Assume you have 30k saved. Starting interest rate is 3.625%.(already at least .5% lower than a conventional loan) You contribute 7 points to buy down(21,000) That lowers the rate from 3.625% to 1.875%. The seller is contributing 3 points which will now lower the rate from 1.875% to 1.125% If you are happy with a 1.125% interest rate, that is all. Can get a little tricky after that. If you make BELOW the median income for the area, you will qualify for the lender matching grant. This is extremely powerful. It’s essentially free money. If you decide to bring another 13,500 to the table(so 34,500 total), your loan balance will go from 300k to 286,500, the bank will match your principle contribution dollar for dollar and reduce the interest rate another 4.5 points to achieve the lowest rate allowed by law which is .0625%. As you can see now the loan would be 286,500 and not 300k. so each point would not cost 3000, each point would cost 2865 which would result in slightly lower amounts across the board. This is where it can get complicated real fast. Don’t worry though, the bank is very precise with all of its calculations, and NACA will verify. DO NOT rely on your NACA counselor to do this type of math on the buy down. This is part of the “sweat equity” you must put into your own file. We over here at Entourage Residential Group are experts at the interest rate buy down! If you earn over 105k~ a year(for DC/Rockville/Silver Spring/Frederick area, or 87k for Baltimore/Howard County/Annapolis ) you would NOT qualify for the bank matching grant and your interest rate would be 1.125% based on the scenario above. See median income list across the nation here: https://www.ffiec.gov/pdf/msa16inc.pdf

Purchase price will vary, loan amount will vary, closing money will vary.

Lets say the seller was offering NO closing assistance. For this reason it is much more valuable to try and buy a home where the seller is going to contribute closing money as it will drastically reduce your interest rate! Lets say in this scenario above the seller only contributed 1% to closing. That would be 3000 and would reduce the interest rate by .25% This would result in you needing to bring more money to the table to achieve the lowest possible rate. Lets go back assuming the seller does give 3% closing help. Here are the total interest numbers over 30 years 3.625% interest=(among all of the other fees involved- PMI, Closing costs, TONS of others rolled into your loan or paid upfront) The interest on this is 192k over 30 years with a monthly principle/interest payment of 1368, first months interest being $905.    0.0625% interest= 34,500k upfront, 21k going to the bank as a “fee”, 13,500  going back into pocket into equity. Amortized interest over 30 years= $2700. 21000+2700= 23,700 total interest. Principle and interest payment monthly is $840. First months interest= $15/month. INSTANT EQUITY FROM THE START!!    This is not found anywhere else outside of the NACA program! Remember: These monthly payment numbers only include Principle & Interest(P & I) payments.(The money going to your actual loan) This does not include property taxes, HOA, home owners insurance, etc. This is also calculating at a 3.625% NACA rate, which is approx .5% currently lower than a conventional loan(Between 4-4.2% currently)

Below is actual financial documents of a 0.0625% 30 year fixed interest rat through Citi Mortgage we obtained.

In this first document, this is the total yearly interest we paid on 12 mortgage payments. The total interest was $227.95

2016 Year End Interest Statement
2016 Year End Interest Statement

This is a copy of our year end statement from 2016. As you can see total principle(equity) applied is $11,601.23, total interest on 12 payments is $209.25

2016 Year End Mortgage Statement
2016 Year End Mortgage Statement

This is a yearly mortgage amortization chart. As you can see total interest with our 0.0625% rate over 30 years amortized is: $3,140.96

This simply shows the Mortgage Details. Our original loan balance of $382,941 with the 0.0625% 30 year fixed rate.

0.0625% Mortgage Details
0.0625% Mortgage Details

This is a list of every single payment we have made to date on our loan.

Protecting buyers and saving them thousands in the DC-District Of Columbia/MD-Maryland/VA-Virginia metropolitan area for over a decade.

People focused. Results driven.

We’re not like everyone else. THERE, we said it. My real estate team is comprised of passionate, innovative real estate consultants in a landscape full of real estate dinosaurs. We specialize in the DC-District Of Columbia/MD-Maryland/VA-Virginia metropolitan area. Our NACA team leader Kristopher Fraley knows first hand what it takes to close on a NACA mortgage with an incredibly low interest rate, as he himself is a NACA home owner(0.0625% fixed rate). You may often see him posting on the NACA forums among many other places across the internet.

Experience. Knowledge. Results.

Kristopher Fraley & his team are experts on the NACA program. By developing relationships with NACA counselors, departments heads, and regional program managers over the last decade we’ve helped guided many buyers through the program successfully. we are proud to put our knowledge and expertise to work for you. Our passion is to help you realize the American Dream!

Qualify. Find. Own.

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, 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 me and my team to help them obtain the best terms on a mortgage possible.

Search. Buy. New Memories.

THE NACA PROGRAM IS NOT FOR THE FAINT OF HEART! Navigating through the program is far different than a conventional mortgage one can obtain down the street. It requires patience. Conventional real estate spend MILLIONS a year on advertising just to charge you FEES! NACA = $0 advertising, NO FEES! Don’t be fooled. Those who conquer the NACA program end up with unbeatable mortgage terms throughout the nation! We are proud to put our knowledge and expertise to work for you. Our passion is to help you realize the American Dream!

Hard Money. Invest. Range Of Return.

The NACA program offers: No down payment requiredno closing costsno private mortgage insuranceno credit score checkbelow market interest rateas low as 0.125% 30 years fixed. NO INVESTORS, Cannot currently own any property, Owner occupancy(must live in home), there is no income minimum, or maximum, no restricted purchasing areas, lender pays appraisal, and absolutely no bogus fees!

The Best NACA Home Buying Resource for DC, MD, VA

Are you ready to work with a DC, Maryland & Virginia Team?


Email: kris@no-downpayment.com

View Kris’s post on the NACA FORUM NACA Program Eligibility Requirements

Our experience with Mr. Kristopher Fraley deserves highest appreciation and five stars all around. We bought our house through a NACA loan and got one of the lowest mortgage payments imaginable with a 2% interest rate. Thanks to the knowledge and the relationships Kristopher and their  team has built over the years, our house buying experience with NACA was smooth and I don’t think it would have been smooth if it wasn’t for their team. Mr. & Mrs. Silva – Full Review Here

Kris, from my entire family to you, THANK YOU FOR EVERYTHING BROTHER. From the bottom of my heart man, you gave my family HOPE when we were constantly moving from apt to basement to apt to rented home and on the brink of quitting multiple times. Now that we’re in this home and my mother’s dream came true, you lit a fire in me that makes me WANT SO MUCH MORE for my mother and the rest of my family. You’ve inspired me to never give up on any of my dreams. You’re an incredible soul my man. You will forever be family to us. WE LOVE YOU MAN. THANK YOU! Ms. Goin & Her Son – Full Review Here

My family and I are extremely grateful for Kristopher Fraley. He was the perfect realtor to have on our team during our NACA process. If you are in the NACA program, look no further. Kris made it clear through his words and actions – consistently – that he was on our side and genuinely wanted the best for us. There was never any pressure from him to do anything, only support, 100% of the time. The Murray Family – Full Review Here

A non-complete list of cities to buy through the NACA program in DC-District Of Columbia, MD- Maryland, VA-Virginia: 

Abell, Aberdeen, Abingdon, Accokeek, Adamstown, Adamstown, Adelphi, Aldie, Alexandria, Amissville, Andrews Air Force Base, Annandale, Annapolis, Aquasco, Annapolis Junction, Anne Arundel County, Arlington, Arlington County, Arlington Va, Arnold, Aroda, Ashburn, Ashton, Augusta Avenue, Baker, Baldwin, Ballenger Creek, Baltimore, Baltimore City, Barboursville, Barnesville, Basye, Bealeton, Beaverdam, Beallsville, Bel Air, Bel Alton, Beltsville, Benedict, Bentonville, Berkeley Springs, Berlin, Berryville, Berwyn Heights, Bethesda, Betterton, Big Cove, Tannery, Big Pool, Bladensburg, Bloomery, Bluemont, Boonsboro, Bowie, Boyce, Boyds, Bozman, Brandy Station, Brandywine, Breezewood Brentwood, Brinklow, Bristow, Broad Run, Broadlands, Brookeville, Broomes Island, Brunswick, Bryans Road, Bryantown, Buckeystown, Bumpass, Bunker Hill, Burke Burlington, Burtonsville, Bushwood, Cabin John, Cabins, California, Callaway, Cambridge, Capitol Heights, Capon Bridge, Cascade, Castleton, Catharpin, Catharpin, Catlett, Catonsville, Cecilton, Centreville, Chantilly, Chaptico, Charlestown, Charles County, Charlotte Hall, Cheltenham, Chesapeake Beach, Chesapeake City, Chester, Gap, Chestertown, Chestnut Hill Cove, Cheverly, Chevy Chase, Church Hill, Churchton, Churchville, Clarksburg, Clarksville, Clear Brook, Clear Spring, Clifton, Clinton, Clover Hil,l Cloverly, Cobb Island, Cockeysville, College Park, Colesville, Colora, Columbia, Conowingo, Cooksville, Cordova, Corriganville, Crapo, Cresaptown, Crisfield, Crofton, Cross Junction, Crownsville, Crumpton, Culpeper, Cumberland, Damascus, Dameron, Darlington, Darnestown, Davidsonville, Dayton, Deale, Delaplane, Delmar, Delray, Denton, Derwood, Dickerson, District Heights, Dowell, Drayden, Dumfries, Dundalk, Dunkirk, Dunn Loring, Earleville East, New Market, Easton, Edgewater, Edgewood, Edinburg, Eldersburg, Elkridge, Elkton, Elkwood, Ellerslie, Ellicott City, Emmitsburg, Essex, Fairfax, Fairfax County, Fairfax Station, Fairmount Heights, Fairplay, Falling Waters, Falls Church, Fallston, Falmouth, Faulkner, Federalsburg, Finksburg, Fishing Creek, Flint Hill, Flintstone, Forest Glen, Forest Hill, Fort Ashby, Fort Belvoir, Fort Littleton, Fort Meade, Fort Valley, Fort Washington, Frederick, Frederick County, Fredericksburg, Freeland, Friendship, Friendsville, Front Royal, Frostburg, Fruitland, Fulton, Gainesville, Gaithersburg, Galena, Galesville, Gambrills, Garrett Park, Garrison, Germantown, Gerrardstown, Gibson Island, Glen Arm, Glen Burnie, Glen Echo, Glenarden, Glenelg, Glenmont, Glenn Dale, Glenwood, Glyndon, Goldsboro, Goldvein, Gordonsville, Grantsville, Grasonville, Great Cacapon, Great Falls, Great Mills, Green Spring, Greenbelt, Greensboro, Greenway, Gwynn Oak, Hagerstown, Halethorpe, Hamilton, Hampstead, Hancock, Hanover, Harmans, Harrisonville, Harwood, Havre De Grace, Haymarket, Hedgesville, Henderson, Herndon, High View, Highland, Hollywood, Hughesville, Howard County, Hume, Huntingtown, Huntly Hurlock, Hyattsville, Idlewylde, Ijamsville, Indian Head, Inwood, Ironsides Issue, Jarrettsville, Jefferson, Jeffersonton, Jessup, Joppa, Kearneysville, Keedysville, Kennedyville, Kensington, Kentlands, Keymar, Kingsville, Knoxville, La Plata, Lake Frederick, Landover, Lanham, Largo, Lavale, Laytonsville, Leesburg, Leisure World, Leon, Leonardtown, Lexington Park, Lignum, Libertytown, Linden, Linthicum, Linthicum Heights, Locust Grove, Lonaconing, Lorton, Lost City, Lost River, Lothian, Loudoun County, Lovettsville, Lusby, Lutherville, Timonium, Madison, Manassas, Manchester, Marbury, Markham, Marriottsville, Marshall, Martinsburg, Marydel, Mathias, Maugansville, Maurertown, Maysville, Mayo,  McLean, Mcdaniel, Mechanicsville, Merrifield, Middle River, Middleburg, Middletown, Midland, Millers, Millersville, Millington, Mineral, Mitchells, Mitchellville, Monkton, Monrovia, Montgomery Village, Montgomery County, Moorefield, Mount Airy, Mount Jackson, Mount Rainier, Mount Savage, Mount Storm, Mount Vernon, Mount Victoria, Myersville, Nanjemoy, National Harbor, Neavitt, Needmore, New Carrollton, New Creek, New Market, New London, New Windsor, Newburg, Nokesville, Newington, Nokesville, North Beach, North Bethesda, North East, North Potomac, Nottingham, Oak Hill, Oakland, Oakton, Occoquan, Ocean City, Ocean Pines, Odenton, Old Fields, Oldtown, Olney, Owings Mills, Oxford, Oxon Hill, Paeonian Springs, Paris Park Hall, Parkton, Parkville, Partlow, Pasadena, Paw Paw, Perry Hall, Perryville, Petersburg, Phoenix, Pikesville, Piney Point, Point of Rocks, Points, Pomfret, Poolesville, Port Deposit, Port Republic, Port Tobacco, Potomac, Potomac Falls, Preston, Prince Frederick, Prince Georges County, Prince William County, Princess Anne, Purcellville, Purgitsville, Pylesville, Quantico, Queen Anne, Queenstown, Quicksburg, Randallstown, Rapidan, Rawlings, Reisterstown, Remington Reston, Reston, Reva, Rhoadesville, Richardsville, Ridge, Ridgeley, Ridgely, Rileyville, Rio, Rising Sun, Riva Riva, Riverdale, Rixeyville, Rochelle, Rock Hall, Rock Point, Rockville, Rohrersville, Romney, Rosedale, Round Hill, Royal Oak, Sabillasville, Saint Inigoes, Saint Leonard, Saint Michaels, Salisbury, Sandy Spring, Savage, Scotland, Severn, Severna Park, Shady Side, Sharpsburg, Shenandoah, Sherwood, Silver Spring, Slanesville, Simpsonville, Smithsburg, Solomons, Somerset, Sparks, Glencoe, Sparrows Point, Spencerville, Sperryville, Spotsylvania, Springdale, Springfield, Saint Leonard, Saint Michaels, Stafford, Stanley Star, Tannery, Stephens City, Stephenson, Sterling, Stevensville, Still Pond, Stoney Beach, Strasburg Street, Sudlersville, Suitland, Sumerduck, Sunderland, Swan Point, Swanton, Sykesville, Takoma Park, Tall Timbers, Taneytown, Taylors Island, Temple Hills, The Plains, Thurmont, Tilghman, Toddville, Toms Brook, Towson, Tracys Landing, Trappe, Triangle, Union Bridge, Unionville, Upper Marlboro, Upperco, Upperville, Urbana, Vienna, Waldorf, Walkersville, Wardensville, Warfordsburg, Warrenton, Warwick, Washington, Washington DC, Washington Grove, Waterford, West Friendship, West River, West McLean, West Minister, West River, Westernport, Westminster, White Hall, Wheaton, White Marsh, White Oak, White Plains, White Post, Whiteford, Williamsport, Winchester, Windsor Mill, Wittman, Woodbine, Woodbridge, Woodford, Woodsboro, Woodstock, Woodville, Woolford, Worton, Wye Mills, Yellow Spring