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WEST PALM BEACH, Fla – Aug. 17, 2010 – In addition to helping homeowners modify their loans, the Neighborhood Assistance Corp. of America will offer its own low-interest mortgages during its Aug. 27-30 West Palm Beach event.

The no-money-down, zero-closing-costs loans are meant for low- to moderate–income families, but come with caveats and application requirements that go beyond traditional mortgages. On Friday, the group’s website was advertising a 4 percent, 30-year fixed-rate mortgage.

To qualify for NACA’s guaranteed fixed interest rate of 1 percent below the prime marketplace, prospective borrowers must participate in workshops where they will be evaluated for their competency as homeowners.

A 2009 report from the conservative-leaning Capital Research Center says applicants may be required to show over a three-month period that they are able to save the difference between their current rent and their desired mortgage.

Consumers with poor credit may be asked to submit budgets showing they are changing spending patterns and have begun to repay delinquent loans.

“How long the process takes depends on the borrower,” the 2009 report says. “Those with a history of financial difficulty will face more scrutiny.”

Once granted a NACA loan, borrowers must pay a monthly $50 membership fee for between five and 10 years, and participate in at least five NACA activities each year.

Also, borrowers must live in the home they purchase. To ensure that happens, the group takes out a lien on the property for the life of the loan.

“Serious actions and remedies are in place to prevent the abuse of the NACA program,” the group’s website says.

NACA is most recently known for its nationwide blitz of loan modification programs.

But the organization’s 1988 founding was done in part to stabilize neighborhoods by giving families a chance to own their own homes.

“First and foremost, we’re a nonprofit mortgage broker,” said NACA spokesman Darren Duarte.

For more information about NACA’s event at the Palm Beach County Convention Center and to register, go to www.naca.com.

Copyright © 2010 The Palm Beach Post, Fla., Kimberly Miller. Distributed by McClatchy-Tribune Information Services.