What serves as the baseline for an affordable mortgage payment according to NACA?

The baseline for an affordable mortgage payment according to NACA is the current housing payment. This is significant because NACA takes into account what individuals are already paying for their housing to determine what they can afford in terms of a mortgage. By using the current housing payment as a benchmark, NACA assesses the applicant's financial stability based on their existing obligations.

This approach helps ensure that the transition from renting (or whatever their current housing situation may be) to homeownership remains manageable, fostering a smoother financial adjustment. It allows NACA to make a more tailored assessment of the borrower's financial situation while minimizing the risk of overextending their budget on a new mortgage. This practice reinforces NACA's commitment to ensuring that homeowners do not face undue financial strain when moving into a purchased home.