NFC Closing Cost Assistance

What is 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.

Do you have to pay it back?

NFC Closing Cost Assistance is forgiven after 5 years, so a buyer 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.

Who qualifies?

NFC Closing Cost Assistance is open to buyers who will live in the home as their primary residence.

What are the income limits?

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.

What kind of home can it be used for?

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.

Is there eligibility for specific groups?

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.

Where does it apply?

NFC Closing Cost Assistance serves buyers purchasing in Des Moines, Iowa.

• The program targets specific areas: NFC Reinvestment neighborhoods receive layered programs.

How do you apply?

Applications for NFC Closing Cost Assistance go through the administering agency, which publishes the current terms and the application steps on its own site.

1. 1

   Take a homebuyer education course

   Required by the program, through NFC-approved homebuyer education; required for all borrowers prior to closing..

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved through Reservation through NFC origination process., and are subject to availability.

3. 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.