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NFC Advantage Loan - Forgivable Renovation Loan & Down Payment Assistance

Neighborhood Finance Corporation (NFC) · Des Moines, Iowa

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Assistance

$15,000

The maximum the program publishes — not an offer

Income limit

100% AMI

Of area median income; varies by county and household size

Repayment

Forgivable

Forgiven after 5 years

What is NFC Advantage Loan - Forgivable Renovation Loan & Down Payment Assistance?

NFC Advantage Loan - Forgivable Renovation Loan & Down Payment Assistance is a forgivable loan for homebuyers in Des Moines, Iowa, administered by Neighborhood Finance Corporation (NFC).

  • The NFC Advantage Loan combines an NFC first/second mortgage with a forgivable renovation loan of up to $15,000 to help homebuyers buy and improve a home in an NFC lending area. The renovation loan is forgiven 20% per year and fully forgiven after five years of continued occupancy. Qualified homebuyers earning at/below 100% AMI may also receive a separate 0% interest deferred down payment assistance loan of up to $15,000. The 80/15 structure removes the need for PMI, and NFC lends on after-renovation value.
  • Forgivable renovation loan up to $15,000 (20%/year, forgiven in 5 years).
  • Separate deferred DPA up to $15,000 at 0%.
  • No PMI via 80/15 structure.
  • Lends on after-renovation value.
  • Wide range of eligible improvements.
  • Funding comes from Neighborhood Finance Corporation (NMLS #8943).

How much assistance does it provide?

NFC Advantage Loan - Forgivable Renovation Loan & Down Payment Assistance offers up to $15,000 in assistance.

  • Award tiers: Forgivable renovation loan up to $15,000 (separate from up to $15,000 deferred DPA loan).
  • The program can be combined with NFC Neighborhood Reinvest DPA, NFC Energy Advantage, other NFC programs.
  • Amounts are the program's published maximums, not an offer — Neighborhood Finance Corporation (NFC) determines any individual award.

Do you have to pay it back?

NFC Advantage Loan - Forgivable Renovation Loan & Down Payment Assistance is forgiven after 5 years, so a buyer who stays that long does not repay it.

  • Repayment is triggered by Forgivable renovation loan: 20% forgiven each year, fully forgiven after 5 years if owner continues to live in home; separate deferred DPA loan repaid on sale/refinance.
  • The assistance is recorded in Second position.
  • Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

NFC Advantage Loan - Forgivable Renovation Loan & Down Payment Assistance is open to buyers who will live in the home as their primary residence.

The program requires

  • The home is occupied as a primary residence
  • A completed homebuyer education course, through NFC-approved homebuyer education (8 hours for the deferred DPA component); HOME Inc. (Polk), Horizons (Linn).
  • Residency: Home in an NFC lending area (Des Moines metro and Cedar Rapids mapped areas).
  • DRAFT (dpa-gap-finder 2026-06-10): pending review. Renovation loan forgivable 20%/year over 5 years; DPA component is a 0% deferred loan repaid on sale/refinance. Requires NFC first-mortgage financing and an NFC lending-area property. $125 application fee. Distinct from the already-cataloged NFC 'Neighborhood Reinvest' and 'NFC Closing Cost Assistance'. UNCONFIRMED: min credit score, DTI, max purchase price.

The program excludes

  • Households above 100% of area median income

These are the program's own published rules, not a decision about any individual — the administering agency and a lender determine who actually qualifies.

What are the income limits?

NFC Advantage Loan - Forgivable Renovation Loan & Down Payment Assistance limits household income to 100% of the area median income, which varies by county and household size.

  • Down payment assistance component requires household income at/below 100% AMI (per NFC 2026 HUD limits); renovation loan component eligibility may differ.
  • 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.

Where does it apply?

NFC Advantage Loan - Forgivable Renovation Loan & Down Payment Assistance serves buyers purchasing in Des Moines, Iowa.

  • The program targets specific areas: NFC lending map areas in the Des Moines metro (Des Moines, West Des Moines, Windsor Heights, Urbandale) and Cedar Rapids.

How do you apply?

Applications for NFC Advantage Loan - Forgivable Renovation Loan & Down Payment Assistance go through Neighborhood Finance Corporation (NFC), which publishes the current terms and the application steps on its own site.

  1. Take a homebuyer education course

    Required by the program, through NFC-approved homebuyer education (8 hours for the deferred DPA component); HOME Inc. (Polk), Horizons (Linn)..

  2. Contact Neighborhood Finance Corporation (NFC) to reserve funds

    Funds are reserved through Apply through an NFC Loan Originator (Des Moines or Cedar Rapids)., and are subject to availability.

  3. Work with a lender who handles the program

    Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.

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