NFC Offers Down Payment Assistance to Expand Homeownership
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Wednesday, May 1, 2019
NFC Offers Down Payment Assistance to Expand Homeownership in Des Moines, West Des Moines, Windsor Heights and Cedar Rapids, Iowa
Homebuyers May Apply for $10,500 Deferred Down Payment Assistance Loan
May 1, 2019
Des Moines, IA -Neighborhood Finance Corporation (NFC) will provide down payment assistance loans to borrowers in NFC lending areas in Des Moines, West Des Moines, Windsor Heights and Cedar Rapids, Iowa.
“These funds will help us to remove barriers to homeownership for those who may not otherwise qualify for traditional mortgage loans,” said Stephanie Preusch, NFC executive director. “With these funds, qualified NFC borrowers will be able to purchase a home for as little as 3% of the purchase price.”
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 for down payment on a home in an NFC lending area.
- 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 renovation and up to $2,500 for closing costs for eligible home buyers.
This funding is similar to Project Reinvest that was first introduced in November of 2017 after NFC received a $3.96 million grant award to support and encourage homeownership in Polk County. The funding helped 330 homebuyers in Polk County secure a loan to purchase a home. The 2017 grant funds have been fully committed.
NFC is now committing funding through a recent NeighborWorks America award to make the same program available to those seeking home loans through NFC on an ongoing basis. The funding is part of a $324,500 flexible grant NFC received from the Neighborhood Reinvestment Corporation, dba NeighborWorks America.
For more information on the NFC Down Payment program, click here or call 515.246.0010 in the Des Moines area or 319.777.7127 in Cedar Rapids.
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. This program is made possible through partnerships with the cities of Des Moines, West Des Moines, Windsor Heights and Cedar Rapids, Polk County, Des Moines and Cedar Rapids area financial institutions, business leaders and neighborhood associations. NFC is a NeighborWorks organization and a Fair Housing Lender.
NMLS# 8943 (NFC Des Moines) and #1757818 (NFC Cedar Rapids)
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