Neighborhood Finance Corporation

Home Purchase Loan

Buy a Home. Build Equity. Finance the Improvements You Need.

Finding the right home is only part of the journey.

The NFC Home Purchase Loan makes it possible to buy a home and finance eligible repairs or renovations with one convenient loan, helping you move into a home that fits your needs while building long-term equity.

Whether you're a first-time homebuyer or purchasing your next home, NFC offers flexible financing, forgivable renovation assistance, and personalized guidance to help make homeownership more affordable throughout Polk and Linn counties.

Program Features

Designed to help homebuyers purchase, improve, and invest in their future.

Forgivable renovation loan up to $15,000 20% of the renovation loan forgiven annually over five years of owner occupancy

Down Payment Assistance – up to $15,000 0% interest deferred loan with no monthly payments

First mortgage up to first 80% for the lesser of purchase plus renovation or after approved appraised value Loans over $250,000 require board approval

Second mortgage up to 15% or 95% combined loan to value at 2% interest (APR)

Low down payment options As little as 5%, with only 1–3% from borrower funds

No Private Mortgage Insurance (PMI)

Competitive fixed interest rates

Finance renovations at time of purchase Based on the home's projected value after improvements or purchase + renovation costs, whichever is less

Why Homebuyers Choose NFC

Unlike traditional mortgage lenders, NFC helps you purchase a home and provides the resources to make it your own from day one.

Buy More Home with Less Upfront Cost Combine your mortgage with forgivable renovation funding and down payment assistance to maximize your buying power.

Move Into a Home That Fits Your Needs Finance eligible repairs, renovations, or upgrades before or shortly after moving in, so you can enjoy your home sooner.

Build Equity Faster Avoid Private Mortgage Insurance (PMI) when financing improvements, basing your financing on your home's future value rather than just its current condition.

Reduce Your Long-Term Costs Forgivable loans and 0% deferred assistance reduce your out-of-pocket costs and help make homeownership more affordable.

One Loan. One Team. One Simple Process. Instead of coordinating multiple lenders and financing programs, NFC helps guide you through one streamlined loan process from application through closing.

Home Purchase Rates

Term

30 Year

Interest Rate

7.125%

APR (Annual Percentage Rate)

7.412%

Term

15 Year

Interest Rate

6.5%

APR (Annual Percentage Rate)

6.953%

Eligibility Requirements

The NFC Advantage Home Purchase Loan is available to qualified buyers who meet program guidelines.

To qualify:

The home must be located within an NFC lending area.

The property must be your primary residence.

Financing must be completed through Neighborhood Finance Corporation.

Applicants must meet underwriting and loan approval requirements.

Renovation work must be completed by licensed contractors.

Borrowers are required to contribute a portion of the down payment.

View NFC Lending Area Map

Additional Homebuyer Assistance

Many buyers qualify for additional financial assistance beyond the NFC Advantage Loan.

Depending on eligibility, additional programs may include:

Down Payment Assistance (0% deferred loans)

Community and partner-funded assistance programs

Your NFC Loan Originator will help determine which programs are available based on your application.

Eligible Home Improvements

Your home purchase loan can include financing for a wide range of repairs, renovations, and improvements that increase your home's safety, comfort, efficiency, and value.

Eligible projects include (not limited to):