Journey to Homeownership

Journey to Homeownership is a deferred second loan for homebuyers in Des Moines, Iowa. Journey to Homeownership is NFC's flagship full-amount DPA in the Des Moines metro. Up to $10,000, 0% interest forgivable 2nd mortgage, 5-year forgiveness. Open to repeat buyers as well as FTHB. 640 FICO; ~$70,400-$149,200 income tier; pairs with NFC-originated first mortgage. Journey to Homeownership provides up to $10,000 in down-payment and closing-cost assistance as a 0% interest forgivable second mortgage. Forgiven over 5 years (20% per year) provided the borrower remains in the home as primary residence. Pairs with NFC's first-mortgage products. Targeted at low-to-moderate income buyers in NFC's Des Moines metro service area. Funding comes from Local, CDFI, HOME, and Bank Partners.

Journey to Homeownership offers between $10,500 and $15,000 in assistance. The program asks homebuyers to contribute $1,000 minimum borrower contribution from own funds. The program can be combined with other assistance, subject to the rules of each. Amounts are the program's published maximums, not an offer — the administering agency determines any individual award.

Journey to Homeownership is deferred, so no payments are due until the home is sold, refinanced, or the first mortgage is paid off. Repayment is triggered by Deferred loan, 0% interest, no monthly payments and due on sale or with a cash-out refinance. The assistance is recorded in 2nd Lien position. Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Journey to Homeownership is open to homebuyers who will live in the home as their primary residence. On credit, the program states: 640 minimum FICO. A homebuyer education course is required, through NFC-approved homebuyer education (NFC offers in-house counseling and Framework/eHome America online); required for all borrowers prior to closing. Residency requirement: Property must be a 1-2 family owner-occupied home within NFC Lending Areas in Polk County (Des Moines) or Linn County (Cedar Rapids). $15,000 available in Core Neighborhoods; $10,500 elsewhere in lending areas. Citizenship or immigration status: U.S. citizen, permanent resident, or qualifying non-permanent resident alien. Household income at or below ~$149,200 (varies by household size and AMI tier). Minimum 640 FICO. Maximum 45% DTI. $1,000 minimum borrower contribution. Property must be primary residence within NFC's Des Moines metro service area (Polk, Dallas, Story, Warren Counties). Homebuyer education required. 5-year owner-occupancy / forgiveness covenant; pro-rata repayment if borrower sells, refinances out, or vacates within 5 years.

Journey to Homeownership limits household income to 100% of the area median income, which varies by county and household size. Household income must be below 100% of the Area Median Income for NFC lending areas in Polk and Linn Counties. The limit applies to total household income, not only the borrower’s. Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

Journey to Homeownership caps the purchase price as follows: No flat purchase-price cap; maximum first mortgage loan amount is $300,000. Eligible property types include Single-family detached, condominium, townhouse, 1-2 unit owner-occupied. New construction is eligible. Manufactured homes are not eligible.

Journey to Homeownership names veterans, active-duty service members, reservists and National Guard members, and surviving spouses among the groups it serves. Being named here means the program mentions the group, not that membership alone qualifies an applicant — the rest of the eligibility rules still apply.

Journey to Homeownership serves homebuyers purchasing in Des Moines, Iowa. The program targets specific areas: NFC operates designated Neighborhood Reinvestment areas in Des Moines metro where additional DPA, rehab funds, and grant-match programs are layered.

Applications for Journey to Homeownership go through the administering agency, which publishes the current terms and the application steps on its own site. Funds are reserved through Reservation through NFC origination process; subject to funding availability. Hey Prescott is not a lender and does not accept applications; this page describes the program so a homebuyer can take it to a lender or housing counselor.