Where are you located?

Neighborhood Finance Corporation's street address is 1912 Sixth Avenue, Des Moines, IA 50314.  The closest major intersection to our office is Sixth Avenue and Hickman.  Our office is just one block south of Hickman on the west side of Sixth Avenue.  Our phone number is 515-288-5626 (that's 288-LOAN).  Our fax number is 515-246-0112. 

I think I'm ready to buy a home, but I'm not sure how to start.  Can NFC help me? 

Call our NFC office at 515-246-0010 to discuss our lending programs and services and how they can help you.

How do I qualify for your program? 

First, the home you wish to buy, improve or refinance must be in NFC's lending area.  Then, you will need to complete a pre-qualification form (please allow sufficient time for this to download) to determine eligibility. 

What is your lending area?

Our map shows our lending area.  Please contact one of our loan originators for more information.  Eligibility for financing is determined by the property’s condition.  Major home repairs include replacement of a furnace or roof, or updating wiring to a minimum 100-amp service. Major plumbing or structural repairs are also considered.

How can homeowners in the NFC lending areas benefit from your programs?

If you own or reside in a home located in an NFC lending area, NFC’s Home Improvement Loan Program can help improve your property.  We provide financial assistance in making major repairs.  We also provide Refinance Loans when rehabilitation needs to be done.  Certain conditions apply to the NFC refinance, particularly on mortgage amounts still owed as they relate to the value of the home. Please call one of our loan originators for details.  A number of residents have used our program to obtain lower interest rates and monthly payments, while also making improvements.

Is your program only for low-income households?

No.  Our program is neighborhood- or property-driven, not income-driven.  First, we look at the address of the property you are buying, improving or refinancing to determine if it is in our lending area.  If it is, then we would like to discuss the possibility of your obtaining a mortgage loan or home improvement loan with us.  Then, you will need to complete a pre-qualification form (please allow sufficient time for this to download) to determine eligibility.   

Who determines your lending areas?

The City of Des Moines determines our lending area based on recommendations from the Neighborhood Revitalization Board.  Please contact one of our loan originators for further details.  

How often do your lending areas change?

There is no specified timeframe by which designated lending areas should change.  The Neighborhood Revitalization Board and City of Des Moines determine how long the neighborhoods will be in our program. 

If I am thinking of making improvements or taking care of needed maintenance, why should I talk to NFC instead of some other lender?

The difference between NFC loans and other loans for home improvement is that a part of the loan may be “forgivable,” meaning that no payback is required.  As much as $10,000 that is used for improvements may be forgiven.  Additional financing may be available for repairs exceeding the forgivable amount of $10,000 on a case-by-case basis.  See additional discussion below on forgivable loans.

How does a forgivable loan work?

NFC provides forgivable loans for homeowners to repair qualified homes in our lending area. The money is forgiven over a five-year period, assuming the property owner still occupies the house.  The portion of the loan that is forgiven depends on the amount needed for repairs or improvements, and the borrower’s income.  Our requirement for forgiveness is that you reside at the residence.  A portion of the loan is forgiven each year you reside there.  For further details, please contact us or one of our loan originators.

Can you utilize forgivable loans more than once?

The forgivable money to do repairs is per property.  $10,000 can only be used once every ten years per property.  If an individual chooses to reapply to use our program again on a different property, he or she may do so.

Who finds the contractors to do the work?

The homeowner is responsible for hiring contractors.

I heard that there is a lot of red tape and inspections, and that it takes forever to get an NFC loan.

There are program requirements and procedures involved in getting assistance from NFC, but it certainly does not take forever.  Most of our loans are processed and closed in 30 to 45 days.  The speed at which an application is completed is largely dependent on the borrower.  We do require a property inspection to help us determine what repairs may be needed to a property; the inspection is performed after the customer submits a prequalification form to NFC.  The forgivable portions of our loans are funded by the City of Des Moines and Polk County.  Therefore, NFC is accountable to these governmental bodies and must ensure that the organization is helping to update properties to current building codes, and address any health or safety issues.  NFC inspections are performed by City of Des Moines housing inspectors.  That inspection might determine that a house has an older furnace or inadequate electrical service, and we would ask that replacement or repairs be made. However, a borrower might also want a kitchen or bath remodeled, or a new garage — and we may finance those repairs.  We are interested in helping with projects that add value and utility to a residence, and those that correct problems.

What about the length of time involved in the process?

The speed at which an application is completed is largely dependent on the homeowner.   After the inspection is completed, it is reviewed with the homeowner, and needed repairs are discussed.  The homeowner then obtains bids for the work from a qualified contractor.  Once all bids are obtained, they are reviewed and approved by NFC as part of the loan approval process.  Your loan amount, including the forgivable portion, is based on the contractors’ bids and home’s purchase price.  Your contractor may begin work after the loan is approved and closed.  When we close the loan, money for the repairs is put into an escrow account at NFC.  You authorize us to pay the contractors as work is completed.  We do inspect to ensure that the contractor has completed the work, but this usually takes no more than 24 to 48 hours after you notify us the work has been completed.  We try to ensure prompt payment to contractors.

Besides making repairs, how can the NFC programs help me?

NFC’s programs help improve the value of your home by correcting problems or by making improvements.  As more residents in a neighborhood utilize the program, property values in the neighborhood increase.  The subsidy for repairs we offer also acts as an incentive to homebuyers.  If you are selling your home, a buyer can come to NFC to obtain their home purchase loan, and we will include a forgivable loan to them for repairs.  We also offer homebuyers down payment and closing cost assistance that are difficult to find elsewhere.  If you are selling a home, ask your realtor to contact NFC.  He or she can put an NFC sign in the lawn along with his or hers, and we can also provide him or her with brochures about the program to give potential homebuyers.  You can also schedule a “pre-inspection” of your property, which will identify repair needs, and speed the processing of a buyers’ loan application if they come to NFC.  This inspection is free of charge to the seller.

I am trying to sell my house myself.  Does it qualify for NFC financing?

Almost all homes in the lending area qualify for financing.  There are a few commercially zoned areas where a house may not qualify, so be sure to inquire with an NFC loan originator.  The loan originators can provide you with our signs and brochures, and arrange for an inspection of your property to help you tell potential buyers about our program.

How do you determine necessary repairs?

An inspection is made by a city inspector to determine necessary repairs.

What is the Tool Lending Library?  Who qualifies, and how?  Do you have a list of tools?

The Tool Lending Library is a project, partially funded with Community Development Block Grant funds, that is included in the City of Des Moines’ HUD Consolidated Plan, which is developed with recommendations from the City’s Neighborhood Revitalization Board.  

What do your homebuyer education classes cover?

We have homebuyer education classes that cover a variety of topics. 

How long does it take to know if I have been approved?

A loan originator will contact you when the prequalification process is complete. 

If I am not approved, what do I need to change so I will be ready to buy a home?

NFC provides counseling on budgeting and credit.

How much home can I afford?

We have a mortgage calculator that you can use.  However, this does not mean that you are already pre-approved.  A potential borrower must submit all required documents to NFC so that a loan originator can accurately discuss his or her income and credit situation.  Please consult with one of our loan originators.

Do you have a list of homes in your lending area?

NFC has a map that shows our lending area.  Be sure to let your realtor know you are interested in NFC lending areas.

How can I get a Tax Abatement for the work that has been completed on my home? 

The Tax Abatement page of the City of Des Moines web site discusses tax abatements.