While social services face budget cuts across the county, a nonprofit mortgage lender in Des Moines increased financial aid for residents looking to buy a home or who are in need of repairs.
The Neighborhood Finance Corp., which specializes in creating sustainable homeownership, expanded assistance for its forgivable home repair fund and its down payment program.
Polk County residents in eligible areas can now apply for up to $15,000 in assistance, up from $10,000. The downpayment program also offers a 0% interest deferred loan, meaning payments are not required until the home is sold or refinanced.
Both programs aim to make it easier for Des Moines area buyers to purchase and maintain homes at more affordable rates, said Executive Director Stephanie Murphy.
“If we can provide more subsidy for a lower interest loan, we can make it more affordable for people,” Murphy said.
The hike in aid comes at a time when metro residents are grappling with fluctuating interest rates and elevated home prices. Iowa homeowners also face higher insurance premiums, which increased by 96% since 2020.
Murphy said she has heard from residents who believed they would never be able to own a home until they started working with NFC.
“What can we control in that?,” Murphy said of the price increases. “We can control the benefits we’re providing.”
How was Neighborhood Finance Corp. able to increase housing aid?
Through long-term efficient budget management, NFC was able to leverage current funding levels to support the increase in aid, Murphy said.
NFC partners with metro cities, Polk County, financial institutions and neighborhood associations to support its assistance efforts. The forgivable loan program receives funding from local governments, while down payment assistance comes from federal sources and NeighborWorks America, a national nonprofit that supports nearly 250 housing organizations.
“We built up enough reserves that we felt like we had enough to increase it for homeowners through using taxpayer dollars as well as we could,” Murphy said.
The 31-year-old organization is one of Des Moines’ best-kept secrets, Murphy said, adding that NFC’s community outreach and loan originator, Bridgett Robinson, is working to promote the assistance programs.
Neighborhood Finance Corp. hasn’t had to cancel any programs due to federal cuts, but there were delays, Murphy said. Because of that, NFC reduced the median income for its exterior repair program to 80% from 100%. Murphy said she is still hopeful to return to the initial income level once NFC receives its federal money.
As for the downpayment and home repair programs, NFC would not increase the loan limits if the organization couldn’t afford to do so sustainably, Murphy said.
“We never want to increase something and then run out of money,” Murphy said. “So we got to the point where we could do that. And we know homeownership, whether it’s buying a house or owning a house, has gotten more expensive.”
How do you apply for Neighborhood Finance Corp. aid?
There are no income limits, but assistance is limited to a lending area, which includes portions of Des Moines, Urbandale, West Des Moines and Windsor Heights.
Residents can apply for loan applications on Neighborhood Finance Corp.’s website, www.neighborhoodfinance.org. Applicants should review the timelines for the loan program.
Neighborhood Finance Corp. operates out of a new location at 4908 Franklin Ave. in Des Moines.
Kate Kealey is the growth and development reporter for the Register. Reach her at kkealey@registermedia.com or follow her on X at @Kkealey17.
This article originally appeared on Des Moines Register: Metro residents can access more financial aid for housing. Here’s how
Reporting by Kate Kealey, Des Moines Register / Des Moines Register
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