NFC Closes 600 Loans & Launches New Down Payment Assistance Program
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Friday, August 30, 2019
Not-for-profit mortgage lender, Neighborhood Finance Corporation (NFC), has provided 600 down payment assistance loans totaling $7,598,500 between June 1, 2017 and July 31, 2019 providing Polk County homebuyers the opportunity of home ownership.
The down payment assistance programs were offered through Project Reinvest and NeighborhoodLIFT which were administered by NFC in Polk County. The first mortgage purchase loans were provided by 10 local banks, NFC, and Habitat for Humanity of Greater Des Moines. HOME, Inc. served as the homebuyer education partner.
“NFC is proud to have provided over $7.5 million in down payment assistance in just over 2 years. We know this help provide affordable and sustainable home purchase loans for working families throughout Polk County,” said NFC’s executive director, Stephanie Preusch. “Many of these homebuyers paired their down payment assistance with an NFC Advantage Loan and also received a $10,000 forgivable loan for home renovations.”
New Down Payment Program to Help Increase Home Ownership
Due to the success of the 600 down payment assistance loans and NFC’s other lending products, NFC recently created the Neighborhood Reinvest Down Payment Assistance Loan program. Neighborhood Reinvest provides down payment assistance to eligible homebuyers earning below 100% of the area median income These homebuyers are eligible to receive a $10,500 30-year deferred loan at 0.00% interest rate (APR 0.00%) for down payment on a home purchased with an NFC Advantage loan in NFC’s lending area.
Homebuyer Testimonial for NFC Lending and Down Payment Assistance
“Neighborhood Finance Corporation (NFC) and Project Reinvest have made something possible my husband and I both thought was out of reach; the reality of home ownership,” said Theron and Danielle Hobbs of Des Moines. “The amazing people at NFC helped us through the process and brought to our attention the down payment program. Thanks to the down payment program we were able to put more money as a down payment which made our monthly mortgage payments more manageable. My family has been blessed by the work done at NFC through the wonderful people working there as well as their knowledge of programs available all so they can help as many people as possible fulfill their goal of owning their own home.”
The NFC Neighborhood Reinvest Program provides down payment assistance loans to NFC Advantage Purchase Loan borrowers in NFC lending areas in Des Moines, West Des Moines, Windsor Heights and Cedar Rapids, Iowa. How the Program Works:
- An eligible homebuyer earning below 100% of the area median income may apply to receive a $10,500 30-year deferred loan at 0.00% interest rate (APR 0.00%) for down payment on a home in an NFC lending area as part of their NFC Advantage Purchase loan application.
- The deferred loan does not have to be repaid until the home is sold or, in some instances, when the homeowner seeks to refinance the home.
- Homebuyers are required to complete eight hours of homebuyer education before receiving the loan.
- NFC will provide the first mortgage fixed-rate loan and the $10,500 down payment loan.
- NFC’s Advantage Loan includes an additional forgivable loan up to $10,000 for renovations and up to $2,500 for closing costs for eligible home buyers.
The funding for Neighborhood Reinvest is part of a $324,500 flexible grant NFC received from the Neighborhood Reinvestment Corporation, dba NeighborWorks America.
For more information on all of NFC lending programs, visit NeighborhoodFinance.org or call 515.246.0010.
About Neighborhood Finance Corporation Neighborhood Finance Corporation (NFC) is a not-for-profit and licensed Iowa mortgage lender providing unique home loans and lending programs to facilitate neighborhood revitalization in Polk County and Cedar Rapids, Iowa. NFC is a NeighborWorks organization and a Fair Housing Lender.
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