The NFC Advantage:
Up to $12,500 in forgivable loans the borrower may not have to repay! When your customer qualifies for an NFC loan, they will receive a subsidy of up to $10,000 to help pay for property repairs and improvements. Eligible home buyers also receive a subsidy up to $2,500 to assist with down payment and/or closing costs. Because these subsidies are paired with your customer's NFC loan, your customers can do more than if they obtained a traditional loan elsewhere. Your customer's loan works harder for them at NFC.
Please note that your customer must get the loan to purchase the home through NFC to be eligible for receiving up to $10,000 for the forgivable loan. The customers CANNOT borrow from another lender and then come to NFC for just the $10,000 forgivable loan. If the customer chooses not to come to NFC for their purchase loan, they will need to wait at least 12 months before coming to NFC for a home improvement loan. At that point, they will be limited to the amount they can borrow based on Loan To Value and other factors, which means either the borrower or property may not be able to support any other debt. Please call an NFC originator for further explanation.
The forgivable loans are not subject to income restrictions. NFC is not a solely a low-income program. NFC makes loans to persons to become home owners and improve properties in neighborhoods of Des Moines.
Neighborhood Finance Corporation greatly appreciates realtors referring their clients to NFC for mortgage financing, and the Des Moines Area Association of Realtors® has been very supportive of NFC. The key to our program is that the client must be looking at buying a home in one of NFC's lending areas. Next, the prospective homebuyer must complete a prequalification form (please allow sufficient time for this to download) and bring the supporting documentation to NFC, at 1912 6th Avenue (one block south of the Hickman and 6th Avenue intersection). With our home purchase program, the homebuyer can receive a subsidy towards property rehabilitation and closing costs. This is not an income-based program; rather, this is a program that is intended to strengthen neighborhoods by improving property values, and providing the homebuyer with the assistance to accomplish this.
Change to NFC's lending that will help YOU: NFC used to require that the house needed 2 major repairs or 1 major and 1 minor, depending on the area, etc. NFC has discontinued that cumbersome formula! Now, provided that the house needs some work that is on NFC's project list, focusing on deferred maintenance items first, the house may very well qualify for NFC eligibility. The list of suggested improvements is on our NFC Map of Lending Area Web Page. Please check with one of our loan originators for more details.
Since 1991, NFC has made over $205,000,000 in loans and grants in Des Moines and West Des Moines--that's a lot of mortgages! See how NFC has helped the neighborhoods where you list homes! NFC offers the following services at no cost to the Realtor:
- Yard signs to complement your own
- Informational materials that may be used for clients or to complement the home’s feature sheet
- Property inspection available for qualified loan applicants. Property inspection for NFC loan purposes only. Effective immediately, NFC can no longer provide pre-inspection services of properties.
- Preapproval for your clients
- Staff presentations
To participate in the NFC purchase program, a qualified borrower must occupy the home as their primary residence and cannot own any other property. NFC's loan program is not for persons who own more than one home in Polk County and any surrounding counties.
NFC now has a loan product that enables qualified borrowers to buy a home with no PMI. Ask one of our loan originators for details. Please contact an NFC loan originator at 288-5626 or by e-mail:
NFC is working to make home ownership more affordable for your home buyers. NFC offers a closing cost subsidy for borrowers below 80% of area median income to a maximum of $2,500. Plus, NFC offers a closing cost subsidy for borrowers over 80% of area median income to a maximum of $2,000. Borrowers earning more than 120% of area median income are eligible for a maximum $2,000 subsidy if they are purchasing a home in a low-and-moderate income area. In addition to these subsidies, NFC continues to provide a $10,000 property rehabilitation subsidy to borrowers purchasing and financing their homes with NFC. All subsidies are in the form of a 5-year forgivable loan. Please call or email one of our loan originators to find out how NFC can help your buyers purchase the home they want:
To familiarize potential home buyers with our programs, we now offer an NFC Orientation every Monday evening from 6--7PM.
We would be happy to see if your clients qualify for a mortgage through our program. Our NFC Loan Preapproval section discusses what they will need to do.
The amount of time it takes to obtain a mortgage through NFC is really dependent on how quickly the borrower can furnish required information to us. Our Loan Process gives you some guidelines.
Our homebuyers must get bids from independent contractors to do the proposed rehabilitation. The Bid Process provides guidelines for the homebuyer, the realtors and the independent contractors.
Our lending area is comprised of designated neighborhoods, which are determined by the City of Des Moines and the Neighborhood Revitalization Board, and a newly expanded lending area.
Our Home Purchase Program is one of our most popular programs and provides a homebuyer with a subsidy towards repairs and closing costs.
Our Downsizing Program provides an additional subsidy for homebuyers who want to return a multi-family house to a single family home.
Our Rates and Calculators section provides today's interest rates and affordability, mortgage payment and amortization schedule calculators.
PLEASE NOTE: NEIGHBORHOOD FINANCE CORPORATION DOES NOT MAKE ANY GUARANTEE THAT THE POTENTIAL BORROWER WILL QUALIFY FOR A MORTGAGE BASED ON ANY BALANCES OR CALCULATIONS INPUT TO ANY OF THE CALCULATORS. TO PREQUALIFY FOR A MORTGAGE, THE POTENTIAL BORROWER MUST COMPLETE THE PREQUALIFICATION FORM AND BRING IT AND THE APPROPRIATE SUPPORTING DOCUMENTS TO NFC. A LOAN ORIGINATOR WILL REVIEW THE POTENTIAL BORROWER’S MATERIALS AND REQUEST A CREDIT REPORT. USING ALL OF THESE DOCUMENTS, AND POSSIBLY OTHERS, THE LOAN ORIGINATOR WILL DETERMINE THE POTENTIAL BORROWER’S LOAN ELIGIBILITY.
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