Anyone heard of NACA: Neighborhood Assistance Corporation of America

These guys are offering:

1) No Downpayment
2) No Closing costs
3) No PMI
4) 5.375% APR for 30 yr Fixed

Their conditions are:

1) You live in the house as long as you have the mortgage.
2) You attend four of their events a year.

Anyone dealt with them before? How strict are they about condition #1 and how do they verify it?

NACA Website

Watch out for the extra fees: $50/mo for 5-10 years.

NACA Website said: At your first individual meeting with a Mortgage Consultant, you will need to pay the Membership Fee, (for 2007 is $20 for the year). Once you purchase your home, you will need to pay the Membership Fee, which includes the Neighborhood Stabilization Fund Fee,of $50 a month for a period of between five and ten years, depending on the amount of the mortgage. source

aamirmian said:
Their conditions are:

1) You live in the house as long as you have the mortgage.
2) You attend four of their events a year.
There's also a maximum purchase price:
https://www.naca.com/offices/maxPrice.jsp?menu=pur
It is significantly below the median in my town. All you could buy under their max purchase price in my town would be a decent 1 bedroom condo, a decent 2 bedroom condo in a bad area, a crappy 2 bedroom condo in a decent area, or a crappy detached home in a bad area.

CrAsian said: You can also buy down the interest rate to 0%.

What do you mean by "buy down the interest rate"?

I checked into it and it seems like a good way for many people who just want a home to get started.
The monthly fee's help offset the cost of financing to all the members. Sort of like the way the old credit unions use to work.

I am a little suspicious, if something sounds too good it usually has some drawback. Doing the math I can't see how they can refinance that in the market with several points below going rate. They seem to have some large backers but at the end the financials still need to work out, is not like Citi and BoA have money to spare .