Neighborhood Finance Corporation

Down Payment Program

The NFC Down Payment Assistance (DPA) Program provides down payment assistance loans to borrowers in NFC lending areas in Des Moines, West Des Moines, Urbandale and Cedar Rapids, Iowa. This program is designed to work alongside your NFC first mortgage, making homeownership more accessible and strengthening long-term neighborhood stability.

Save Time – Complete Homebuyer Education Early

Completing your homebuyer education is one of the smartest steps you can take to start your purchase journey. Your certificate is valid for 12 months, and early completion may qualify you for the additional down payment and closing cost assistance.

Required Homebuyer Education Resources

Get Started

Connect with one of our trusted community partners to help you navigate homebuyer education, eligibility, and next steps toward securing down payment assistance.

HOME, Inc. (Serving Polk County / Des Moines)

Horizons (Serving Linn County / Cedar Rapids)

Or contact a NFC Loan Originator to begin the process.

How the Program Works

An eligible homebuyer earning below 100% of the area median income may apply to receive a $15,000 30-year deferred loan at 0.00% interest rate (APR 0.00%) 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. Please visit the NFC Resources Page and talk to your NFC Loan Originator for additional information.

NFC will provide the first mortgage fixed-rate loan and the $15,000 down payment loan.

NFC’s Purchase Loan includes an additional forgivable loan up to $15,000 for renovations

Borrower Requirements

Household annual income at or below 100% of the area median income.

Homebuyers are required to complete approved homebuyer education before receiving a loan. Property must be an owner-occupied principal residence.

Homebuyer Education is needed for NFC Down Payment Program.

May not own another property at time of closing. Current home must be sold before closing on the new home.

Must obtain first mortgage financing through Neighborhood Finance Corporation.

More Information and Homebuyer Education

For more information on the program please contact the office for the appropriate cities as follows:

Des Moines, Urbandale and West Des Moines: 515-246-0010
Cedar Rapids: 319-777-7127

What is a Deferred Loan?

A NFC deferred loan does not have to be repaid until the home is sold, is no longer your primary residence, or in some instances, when the home is refinanced. There are no payments or interest, though you may choose to pay an extra amount on your repayable mortgage. A NFC Loan Originator can provide you with additional information. Click here for the deferred loan flyer. If you have questions about when NFC will subordinate a loan, please visit the Subordination Guidelines page of the NFC website.