Programs: Loan origination: neighborhood revitalization is the key mission of nfc. This is accomplished by providing a loan for repayment as well as a forgivable loan for each qualified transaction. The forgivable loan is at 0% interest with no payments and generally forgiven over 5 years. In addition, purchase and some refinance loans have a second mortgage at a 2% interest rate for 10 years instead of requiring private mortgage insurance for borrowers with less than 20% equity. Nfc's loans work together to provide a mortgage that reduces the barriers of downpayment and equity while completing needed renovations of the property. In 2016, nfc closed 319 loans. This is the number of clients served through our purchase loan, second mortgage, refinance and home improvement products. This is the number of properties that were the beneficiary of property revitalization. The total dollar amount of loans closed in 2016 was $17,697,259. Purchase loan, second mortgage, refinance and home improvement transactions were completed in areas of des moines that are targeted for revitalization. Home improvement transactions were completed in specific west des moines and windsor heights neighborhoods. The neighborhoods are typically low to moderate (low-mod) income census tracts. In 2016, 222 loans (not including second mortgages) closed were made to borrowers that were in low-mod income census tracts and/or low-mod income for polk county, iowa. Of these 222 loans, 71 loans were made to borrowers that have low-mod income in low-mod income census tracts; 26 were made to borrowers with low-mod income, but not in a low-mod income census tract, 66 loans were made to borrowers that are in a low-mod income census tract but do not have low-mod income, the other 59 loans closed were made to borrowers that are not low or moderate income or in a low or moderate income census tract. In 2016, 73. 42% of loans closed were to either low-mod borrowers, in low-mod census tracts or both. In 2016, 13. 96% of the loans closed were to minority borrowers. Nearly all residential mortgage loans closed through nfc are to owner occupants. The number of home purchase loans closed in 2016 was 91. Nfc closed 97 second mortgages, 61 home improvement loans and 70 refinance loans. Additionally, in 2016, 55% of the home purchase loans closed were to first time home buyers. Nfc is proud to partner with polk county, iowa and the windsor heights-urbandale sanitary sewer district to provide a financing option for windsor heights, iowa residents who need to replace or repair their sewer line as part of the save our sewer (s. O. S. ) program. Windsor heights has an aging sanitary sewer infrastructure since the sewer lines are old, these sewer lines can crack and allow groundwater to infiltrate them. In addition, there are residential properties that have foundation drains or sump pumps directly tied into the sanitary sewer system. This results in storm water and groundwater being directly introduced into the sewer system. These are referred to as inflow and infiltration issues that will be addressed through the s. O. S. Program.
forgivable loan: as stated in loan origination description, each transaction that nfc provides to our borrowers includes a forgivable loan for property rehabilatation. The forgivable loan is a 0% interest rate loan for either 5 or 10 years. A 5 year forgivable loan is granted on all single family dwelling transactions. A 10 year forgivable loan is granted on all transactions that are downsizing a multi family dwelling back to a single family dwelling. There is no repayment required on the forgivable loan as long as the borrower is residing in the home. The forgiven amount is reported to the borrower on form 1099c each year until the entire amount is forgiven. Since inception, nfc has awarded forgiveable loans totaling $38,923,670 through december 31, 2016. In 2016, nfc closed $2,119,763 in forgivable property rehabilitation loans. The forgivable property rehabilitation loans were granted in 23 neighborhoods and other low income census tracts. Most properties with nfc funding for home purchase are inspected by a city of des moines inspector to make sure all code violations at the property are addressed through the homeowner's property rehabilitation projects. The city of des moines inspector also provides authorization for payout once the property rehabilitation project is properly completed and meets the borrower's satisfaction. The city of des moines inspector notifies nfc when the project is completed and verifies that it was completed in a workman-like manner. Additionally, these property rehabilitation projects improve the value of the homes in these neighborhoods. This can lead to increased values for other homes in these neighborhoods.
at nfc properties llc, our goal is to provide safe, affordable, quality housing to owner occupants. In 2016 nfc properties llc acquired 15 properties. Of those 15 properties, 10 were from nfc's real estate owned (reo) intake through borrower default, and 5 were purchased as reo's from other lenders. During 2016, 4 units in nfc properties llc housing inventory completed rehabilitation (8 were reo properties), and 15 of the inventory units were sold. Nfc properties llc focuses on energy efficiency by adding high efficiency furnace and a/c, vinyl low-e windows, and blown cellulose insulation. This helps ensure that the home stays affordable for the future homebuyer.
nfc's home buyer education department was discontinued during 2012. The services are still being offered in the city of des moines since nfc is in a service agreement with a local non profit organization to offer the programs previously offered by nfc. These programs are offered in an individual and classroom setting. Education programs include financial/debt management and budgeting. During 2016, nfc provided educational services to 27 households in des moines, iowa through an agreement with this non-profit in des moines, that focuses on creating opportunities for low and moderate income iowans to build their assets and achieve financial stability. Nfc has agreements with the city of des moines (the city) and polk county (the county), wherein the city and the county agreed to contribute money for the specific purpose of funding neighborhood housing revitalization programs. Under the agreements, cumulative contributions by the city and county have totaled $25,537,687 and $24,337,687 respectively, through december 31, 2016. In march 2012, the city extended its agreement until june 2017. The city will contribute at least $1,000,000 annually through the year 2017. In september 2013, the county renewed its agreement until june 2017. The county will contribute at least $800,000 annually through the year 2017. Nfc has agreements with the city of west des moines and city of windsor heights, wherein they each agreed to contribute money for the specific purpose of funding neighborhood housing revitalization programs. Under the agreements, cumulative contributions by the city of west des moines have totaled $400,000, and cumulative contributions from the city of windsor heights have totaled $75,000.
