Quick summary
The Neighborhood Assistance Corporation of America (NACA) is one of the largest HUD-approved homeownership counseling organizations in the country. Its "Best in America Mortgage" comes with no down payment, no closing costs, no fees, no PMI, and a below-market fixed rate, with underwriting based on payment history rather than a credit score. For Maryland, DC, and Virginia homeowners, NACA's renovation financing can also fund a full home remodel after closing. This guide covers how the program works, who it serves in the DMV, and how iDesign fits into a NACA renovation.
Table of contents
What the NACA Program Is
NACA is a nonprofit, HUD-approved housing counseling organization that has helped hundreds of thousands of families buy and keep their homes. All homebuyers are welcome, but the program centers low-to-moderate income households and people buying in low-to-moderate income communities. Billions of dollars in mortgage commitments from participating lenders, including Bank of America, fund the loans.
What sets NACA apart is character-based lending. Instead of leaning on a credit score, counselors document your actual ability to pay through bank statements, rent history, and a household budget. That makes the program a real path to ownership for DMV buyers who have steady income but a thin or bruised credit file.
The Best in America Mortgage
NACA's signature loan is a 15- or 30-year fixed mortgage with terms that are hard to match anywhere else in the Maryland, DC, and Virginia market.
Unbeatable terms
- ✓Below-market fixed rate — locked for the life of the loan
- ✓No down payment — buy with $0 down
- ✓No closing costs — paid by the lender
- ✓No fees — no origination or application fees
- ✓No PMI — never any private mortgage insurance
- ✓No credit score minimum — based on payment ability
Eligible property types
- • Single-family homes
- • Condominiums
- • Multi-family properties (2–4 units)
- • Mixed-use properties
- • Co-ops
- • Existing and new-construction homes
- • Manufactured and modular homes
NACA Programs Available in MD, DC & VA
Purchase Program
Comprehensive counseling plus access to the Best in America Mortgage. It is built for first-time buyers and for anyone purchasing in underserved DMV communities, with continued support after closing.
Housing Choice Voucher (Section 8) to Homeownership
Voucher recipients can apply their housing assistance toward a NACA mortgage, turning a monthly rent subsidy into a payment on a home they own. It is a direct route out of long-term rental assistance and into equity.
Home Save Program
For existing homeowners with an unaffordable mortgage, NACA advocates with lenders and servicers to restructure the loan and reduce the interest rate, often lowering the monthly payment substantially.
New-Construction & Revitalization Initiatives
In partnership with local governments, NACA also supports affordable new construction — often modular homes built to code and priced for low-to-moderate income buyers — to revitalize neighborhoods one block at a time.
Purchase & Renovation Financing
This is where most DMV homeowners cross paths with iDesign. NACA's purchase-and-renovation option lets you finance a home and the work it needs in a single mortgage, with funds held in a rehab escrow and drawn down as the project progresses. It lets buyers compete for the older, character-rich homes across Bethesda, Rockville, and DC that need updating to be livable.
Renovation budgets most often go toward a broader home remodel — frequently a kitchen remodel or a bathroom renovation that brings the property up to code and up to date. Our eco-friendly design guide covers the energy and water upgrades that fit neatly inside a renovation escrow.
A key benefit: the renovation portion is structured so your future payment does not jump because of the work — the financing is designed to keep the home affordable through and after the remodel.
NACA's renovation department typically helps homeowners:
- • Define the scope of work and a realistic rehab budget
- • Estimate repair and renovation costs
- • Coordinate with inspectors and identify eligible contractors
- • Manage contractor selection, inspections, and payment disbursement
- • Provide guidance through completion
iDesign works with DMV homeowners using NACA renovation financing — translating the rehab escrow into a buildable design, an accurate scope, and finished rooms. We sequence the trades and the selections as one project, so the escrow draws line up with the work.
DMV-Specific Notes
Many Bethesda, Chevy Chase, and Silver Spring homes were built before 1978 and may contain lead-based paint. Any renovation that disturbs painted surfaces in those homes requires an EPA-certified contractor — budget for it inside the rehab scope.
Montgomery County and the District require permits for structural work, electrical, plumbing, and most additions. Build the permit timeline into the project schedule before ordering cabinetry or fixtures.
NACA mortgage amounts are tied to what your documented income can support, not to a credit score. In a high-cost market like the DMV, that makes the purchase-and-renovation route especially useful for buying a more affordable home that needs work and financing the improvements in the same loan.
How to Get Started in Maryland, DC & Virginia
- 1Attend a homeownership workshop — learn the program and begin the qualification process.
- 2Work with NACA counselors — document your budget and establish payment ability.
- 3Get qualified — receive the mortgage amount you can afford.
- 4Find your home — search with NACA's real estate support across the DMV.
- 5Close and renovate — purchase with no down payment and put the rehab escrow to work.
You can register for a workshop and find the nearest office serving Maryland, DC, and Virginia at naca.com.
Planning a NACA-financed renovation in the DMV?
iDesign works with homeowners using NACA renovation financing across Bethesda, North Bethesda, Rockville, Potomac, and the wider DMV. Book a free consultation and we will help shape the scope, the design, and the finishes around your rehab budget.
Start your NACA renovation