The 15-year amortization on a 20-year term mortgage is associated with which NACA program?

The correct answer is associated with the HOT-PHA program. This program is distinct because it allows borrowers to take advantage of a 15-year amortization schedule while technically being structured with a 20-year loan term. This unique setup can lead to substantial interest savings over the life of the loan compared to a traditional full term, while still allowing for the flexibility of a longer-term mortgage without the penalties usually associated with shorter amortization schedules.

The benefits of such an arrangement include lower overall payments and quicker equity buildup, making it a favorable option for homebuyers who are focused on long-term financial health and rapid principal reduction. In this context, the HOT-PHA program specifically targets certain eligible borrowers, providing them with opportunities that align with the goal of affordable homeownership.

Understanding the specific characteristics of each program is crucial, as they provide various options tailored to different financial circumstances and goals.