<prompt> Human: There are a lot of mortgage threads in rpersonalfinance. One thing I havent seen mentioned lately is that there is an avenue to get a house with ideal terms: 0 PMI, 037; down, 0 closing costs, and a rate below what you would get with a 850 FICO from a conventional bank. There is a nonprofit organization called the Neighborhood Assistance Corporation of America NACA, that does this. You can put down more than 037; down if you want it isnt required, but given how some people here are debt averse I thought Id point that out. The mortgage will still have better terms than you could get from any bank.What is the catch?A few things to be aware of:1. You will be subject to underwriting standards far more rigorous than any conventional mortgage. The initial qualification process will take 2-3 months, maybe more. NACA doesnt want to lend to anyone who gets into a house they cant afford. After you are NACA qualified, it takes them the normal 30 days to close in most cases. But for the initial approval, be prepared for the financial equivalent of a colonoscopy. 2. You cannot get a NACA mortgage for a investment property, and technically you arent supposed to later rent the property it should be your primary residence - but they have no way of checking this. There is an exception for multiple unit properties. As long as you live in one of the units, you can use NACA for a multiple unit property. 3. You cannot get a HELOC on the property later, NACA considers them predatory you could refinance to get a HELOC later if you wanted to. However, NACA will lend for re-models or wish list items marble countertops, etc. - things you normally use a HELOC for up front. 4. If you are in a hot market, you should be aware that many sellers agents dont like dealing with NACA because NACA has more stringent requirements than traditional banks. That is why you dont mention NACA to whoever you are buying a house from until after your offer is accepted. You include in your offer a pre-approval from a traditional bank. Once your offer is accepted, go with NACA - you cant be stopped from using whatever financing you want.Even given the catches - given the terms - I think its 10037; worth it.No really, there has to be other catches - those arent bad. What is it? How do they make money?Really, there isnt. You just have to jump through their underwriting hoops. NACA is a nonprofit. They dont make any money from this, which is why they dont advertise it. The mortgages they underwrite are fundedserviced by either Bank of America or Citibank.I thought programs like this were means tested e.g. must below X income?This is not a program which is means tested. You could be a millionaire and get a mortgage through NACA. People who are higher incomes are non-targeted members who are subject to purchase price caps but the caps are very high unless you live in NYC or another ultra-high cost of living metro. For example, in my medium cost of living area the purchase price cap is 400,000 and you can get a mansion for that price.Is this one of those first-time buyer mortgage programs?Nope! You could be on your 3rd mortgage, it doesnt matter. As long as you are selling one house and moving into another one that is your primary residence, you qualify.What about new construction or refinancing my existing loan?New construction qualifies, as long as it is your primary residence and you own no investment properties. NACA has a refinancing program, but it is less fantastic than their purchase program.  <response>: The purchase caps are very low. Looked at several west coast locations and there are 0 houses under the price cap. 