NFC Update
NFC Update
Presentation to Des Moines City Council ? October 27, 2021
1912 6th Ave Des Moines 515.246.0010
Stephanie Murphy smurphy@ 515.273.1372
Our Mission
NFC provides unique lending programs and related services to facilitate targeted neighborhood revitalization in Polk County and Cedar Rapids, Iowa through partnerships with residents, governments, community-based organizations and the business community.
NMLS #8943
History of NFC
NFC created in 1990 to improve Des Moines neighborhoods
Five neighborhoods were chosen and each neighborhood had a smaller "target area" where resources were to be focused
The original neighborhoods in 1991 were Beaverdale, Capitol East, Columbus Park, River Bend/North Park and Woodland Heights
Over-time NFC was asked to expand to more neighborhoods
Current Des Moines Lending Area
Urbandale
Windsor Heights
Des Moines
Special Investment Districts
West Des Moines
NFC Advantage Loans
Types of loans available:
Purchase
Refinance
Home Improvement
Front Porch Exterior
Every loan has a repayable loan and forgivable loan: 1st mortgage repayable loan is paired with a forgivable loan up to $10,000 that is funded through a 28E Agreement with the City of Des Moines & Polk County.
Subsidy is a 5 year forgivable lien against the property
Up to $10,000 per property every 10 years for improvements for renovation.
$20,000 is available for downsizing to a single-family home ? forgiven over 10 years.
No PMI ? 80/15/5 loan with a option for a 3% borrower/2% gift down payment.
NMLS #8943
NFC Funding Structure
Investor Capital
NFC has a current lending pool of $15M with 12 Financial Institutions in Polk County.
NFC sells some purchase and refinance loans and all of our home improvement loans to local Financial Institutions.
NFC sells $15 to $20M a year to Fannie Mae of purchase and refinance loans.
Local Government Funds
NFC receives $1M a year each from the City and Polk County (5 year 28E Agreements).
These funds are for forgivable loans to homebuyers and homeowners $2,046,726 in FY 2020. $9,303 per borrower.
Also use as Loss Reserves for Lending Pools.
Historically, NFC has recycled 45% of local government funding through repayment and not needing to use the loss reserves due to low delinquency.
Since 1991, NFC has provided $47.75M in forgivable loan funds in Des Moines.
NFC Raised Capital
NFC has received CDFI funding for our Front Porch Exterior Repair Program. FY 2020 - $521,190 for 29 homeowners.
Utilize CDFI funding for 2% interest 2nd mortgages. In FY 2020 - $985,678.
Use NeighborWorks funding & other funds raised for Neighborhood Reinvest Down Payment Program. In FY 2020 $330,500 for 32 homebuyers.
FY 2021 NFC Lending
July 1, 2020 to June 30, 2021
Neighborhood Finance Corporation Lending in Des Moines Summary
Forgivable Loan
Renovation
Loan Type
# of Loans # of Households Loan Amount
Amount
Amount
Purchase
57
57
6,625,394
624,425
934,490
Refinance
108
108
12,784,185
1,049,043
3,018,920
Home Improvement
26
26
977,485
220,020
1,152,292
Front Porch Exterior Repair
29
29
521,190
153,238
643,487
Tandem Second Mortgage
70
985,678
-
-
Down Payment Assistance
32
330,500
-
-
Total
322
220
$
22,224,432 $
2,046,726 $
5,749,189
NFC Lending by Ward
Ward 1 Ward 2 Ward 3 Ward 4
# of Households 91 69 44 16
Total Investment Total Renovations
10,277,462
2,600,573
7,407,765
1,232,008
5,358,761
1,586,234
1,227,170
330,374
Information on NFC Lending
Purchase, Refinance and Home Improvement Loans are sold to Investors (Local Financial Institutions or Fannie Mae)
NFC self-funds the Front Porch, Tandem Second
Mortgage and Down Payment Assistance.
Total Des Moines
220 $
24,271,158 $
5,749,189
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