Episode•April 21, 2022•27 min

Leveraging NACA: Real Estate Investment Tips from Mark Jones II | Ep. 98

In this episode of Money Talk with Tiff, host Tiffany Grant speaks with Mark Jones II, a real estate investor and founder of "Livin Rent Free." Mark shares insights about the Neighborhood Assistance Corporation of America (NACA), a platform offering zero money down and zero closing costs mortgages. He explains the eligibility criteria and discusses the opportunities and challenges of the NACA program. Mark also delves into the concept of house hacking and the potential of using section 8 vouchers to pay for mortgages. If you're looking to delve into real estate investment and learn about unique financing options, this episode is a must-listen! About Our Guest Mark Jones II is a Los Angeles native. Growing up in Los Angeles, Mark was inspired by the real estate developer Rick Caruso of Caruso Affiliates and his developments The Grove and The Americana. As a child, seeing huge Caruso® real estate developments spring up inspired him to create something of his own. In a way it empowered Mark. He asked himself, “If other people could create something beautiful in real estate that brought such beauty and enjoyment into the lives of others, why couldn’t I?” Connect with Mark Instagram: https://www.instagram.com/livinrentfree/ YouTube: https://www.youtube.com/@livinrentfree TikTok: https://www.tiktok.com/@livinrentfree_ Connect with Tiffany Facebook: Money Talk With Tiff Twitter: @moneytalkwitht Instagram: @moneytalkwitht LinkedIn: Tiffany Grant Timestamps [00:00] NACA protects homeowners from predatory lending practices. [03:17] Man sued banks, funds NACA program for mortgages. [08:56] Real estate options depend on income level. [10:08] Gentrification brings investment opportunities in evolving neighborhoods. [13:35] NACA program offers unique options, some limitations. [17:13] Took a risk, profited big in LA. [23:29] House hacking: live in part, rent out rest. Key Topics NACA Program: Zero Down Payment and Closing Costs Real Estate Investing: Multifamily House Hacking Strategy Section 8 Vouchers: Potential for Home Purchase Community Development: Advocacy for Homeownership Financial Literacy: Wealth Building through Real Estate Eligibility and Criteria: Qualifications and Caveats Flexibility and Options: Lower Interest Rates and Rehab Financing Additional Links & Resources Home | NACA Support this Podcast Copyright 2024 Tiffany Grant This podcast uses the following third-party services for analysis: Podcorn - https://podcorn.com/privacy OP3 - https://op3.dev/privacy

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Key Takeaways

1
NACA offers zero-down, zero-closing-cost mortgages with no minimum credit score or upper income limit
Funded by billions recovered from banks via predatory-lending lawsuits
Interest rates often 0.5–1 % lower than FHA/VA/conventional loans
Rehab costs can be financed and the rate bought down so monthly payment stays the same
2
Priority-member status gives the lowest rates and lets you buy anywhere
Earn ≤ 100 % of county median income → priority member
Non-priority buyers must purchase in neighborhoods ≤ 80 % of median income to qualify for priority pricing
Gentrifying areas often still qualify because median income lags visible change
3
House hacking with 1-4 unit properties eliminates your largest monthly expense
Live in one unit, rent the others; rent can cover 100 % of mortgage
Airbnb or travel-nurse tenants can supercharge cash flow
Even 12–24 months of house hacking can accelerate wealth building
4
Section 8 vouchers can theoretically be used to purchase a home via NACA
Program exists but is extremely selective—only a few hundred approvals nationwide each year
NACA counselors will advocate for applicants on the voucher-to-purchase track
Buying a multifamily lets voucher holders collect rent from other units to build equity
5
NACA requires owner-occupancy for the life of the loan, but equity can unlock future options
Refinance later to convert the property into a pure rental
No “NACA police,” yet fraud is strongly discouraged
Strategic house-hackers plan an exit via refinance once equity is built

Intro

Tiffany Grant interviews real-estate investor Mark Jones II about the little-known NACA mortgage program that can get qualified buyers into multifamily properties with nothing down.
Los Angeles native and founder of Livin Rent Free; inspired by developer Rick Caruso; teaches house-hacking and creative financing nationwide.

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– What Is NACA?

Neighborhood Assistance Corporation of America is a nonprofit that uses lawsuit settlements from predatory lenders to fund zero-down, zero-closing-cost mortgages.

It's one of the best mortgages in America, if not the best.
– Mark Jones II

– Eligibility & Trade-Offs

No minimum credit score, no income cap, but purchase-price caps exist ($1.4 M for 4-unit in high-cost markets).

Priority: ≤ county median income → lowest rates, buy anywhere
Non-priority: must buy in ≤ 80 % AMI tracts to unlock priority pricing

– Gentrification Arbitrage

Median-income data lags visible neighborhood change, so investors can still qualify in up-and-coming areas.

– Program Perks & Limitations

Rates ½–1 % below market
Rehab financing rolled in with rate buydown
Owner-occupancy required for loan term

Refinancing later removes the occupancy requirement and frees the property for pure rental use.

– Risk-Reward House Hack in LA

Sold my suburban house, pocketed the equity, and bought a triplex near SoFi Stadium with zero down—now up almost $400 k in two years.
– Mark Jones II

– Section 8 Voucher to Purchase

Possible but extremely rare; NACA staff will advocate for applicants who make the selective list.

– House-Hacking Strategy

Buy 1-4 units, live in one, rent the rest; Airbnb or travel nurses can further boost income and accelerate debt payoff.

Resources

Topics

NACA mortgagezero-down financinghouse hackingmultifamily investingSection 8 home purchasegentrification investingowner-occupied loanscreative real-estate financefinancial literacycommunity development