NFC Closing Cost Assistance

NFC Closing Cost Assistance is a forgivable loan for homebuyers in Des Moines, Iowa. NFC Closing Cost Assistance is a closing-cost-only forgivable 2nd mortgage up to $2,500. Lower income ceiling than Journey to Homeownership; designed for buyers with their own down payment who need CC help. 5-year forgiveness; 640 FICO; pairs with NFC first mortgage. NFC Closing Cost Assistance provides up to $2,500 in CLOSING COST ONLY assistance as a 0% interest forgivable second mortgage. Forgiven over 5 years (20% per year) while borrower occupies as primary residence. Pairs with NFC-originated first mortgage. Lower income ceiling than Journey to Homeownership. designed for buyers needing closing-cost help only (with their own down payment). Funding comes from Local, CDFI, and HOME.

NFC Closing Cost Assistance is forgiven after 5 years, so a homebuyer who stays that long does not repay it. Repayment is triggered by Forgiven 20% per year over 5 years and pro-rata repayment if borrower sells, refinances, or vacates before forgiveness completes. 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.

NFC Closing Cost Assistance 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; required for all borrowers prior to closing. Residency requirement: Property must be located within NFC's Des Moines metro service area (Polk, Dallas, Story, Warren Counties). Citizenship or immigration status: U.S. citizen, permanent resident, or qualifying non-permanent resident alien. Household income at or below ~$119,350 (varies by household size; ~80% 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. Homebuyer education required. 5-year forgiveness covenant. Cannot be combined with Journey to Homeownership on the same transaction.

NFC Closing Cost Assistance limits household income to 80% of the area median income, which varies by county and household size. Income limits ~80% AMI tier in NFC's service area; $56,300 (lower) up to $119,350 (upper) depending on household size. 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.

NFC Closing Cost Assistance caps the purchase price as follows: Subject to NFC underwriting; no published flat cap. Eligible property types include Single-family detached, condominium, townhouse, 1-2 unit owner-occupied. New construction is eligible. Manufactured homes are not eligible.

NFC Closing Cost Assistance 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.

NFC Closing Cost Assistance serves homebuyers purchasing in Des Moines, Iowa. The program targets specific areas: NFC Reinvestment neighborhoods receive layered programs.

Applications for NFC Closing Cost Assistance 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. 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.