NFC 2022 Annual Report-Combined

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Dear Friends and Supporters,

It is hard to believe that 2022 was my eighth year as the Executive Director of NFC; it was a year of exciting things paired with challenges for mortgage lenders nationwide. I want to start by sharing some exciting things that happened this year.

NFC Phase 20 Offering

NFC has completed 23 Offerings since the first one in 1991. This year, NFC raised $21.75M in lending capital from twelve local financial institutions. As one of our largest offerings, the NFC Board of Directors and Team appreciates this support and confidence. These funds will be used to provide purchase, refinance, and home improvement loans paired with forgivable loans throughout our Polk County Lending Area.

Phase 20 Banks

Availa Bank

Bankers Trust

Central Bank

Community State Bank

Great Southern Bank

Iowa State Bank

Lincoln Savings Bank

Luana Savings Bank

Northwest Bank Peoples Bank

Two Rivers Bank West Bank

NFC was awarded $2M in Des Moines, Urbandale, and Cedar Rapids to provide homebuyers and homeowners a $10,000 Energy Advantage deferred loan. Combined with an NFC repayable and forgivable loan, the Energy Advantage program will allow homeowners to take control of their energy footprint by adding or replacing items such as solar, heat pumps, new efficient HVAC systems, Energy Star windows and doors, and other energy improvement repairs. We are excited to see the energy savings this program will provide and will share our data in the future.

As you read through our Annual Report, you will learn about our launch of Journey to Homeownership and NFC Properties’ partnership with Invest DSM. You will also read that we did fewer loans than in 2020 and 2021 due to the rising interest rates. We are thankful that we have a variety of programs and can still bring affordable loans for home renovations to neighborhoods.

Thank you for being so committed to neighborhoods and safe and affordable housing opportunities,


Neighborhood Finance Corporation Activity

Impact of NFC Lending in the Communities We Serve


Loans to Existing Homeowners



216 Households Assisted

$58,063 Average Loan Amount Per Borrower

Des Moines

$9,115,228 Total Lending $3,670,871 Total Renovations

West Des Moines $397,849 Total Lending $309,689 Total Renovations

NFC’s lending was impacted by interest rates that increased from 3.26% in January 2022 to 7.88% in December 2022. NFC borrowers took advantage of our Exterior Repair Program with a maximum interest rate of 4% (APR 4.37%).


112 Jobs Created/ Maintained

$19,802,606 Total Investment

NFC Lending, home renovations, and NFC Properties LLC created 112 Jobs in the communities we serve. This resulted in $19,802,606 in economic investment in the communities we serve. We are proud to work with small business to build homes and support almost $5 million in homeowner’s renovations in 2022.


$564,361 Total Lending $142,241 Total Renovations

of home value increase for every $1 of forgivable loan funds
Amount of Private, NFC & Federal Funds leveraged for every $1 of local funds Amount
0 50 100 150 200 250 2021 2022 143 31 50 77 50 23 RefinanceHome RenovationExterior Repair Program

and Impact in 2022

151 Loans Funded


Mae 113 Local Investor Financial Institutions

NFC provides layered financing and most borrowers receive two or more repayable, deferred or forgivable loans. The NFC Advantage Loan is made possible through Federal funds, local dollars and local financial institutions.

15% Cedar Rapids

Cedar Rapids

$2,527,634 Total Lending

$705,818 Total Renovations

25 PATCH Derecho Recovery Loans

$153,689 PATCH Forgivable Loans

6% West Des Moines

4% Urbandale


75% Des Moines

*NFC Lending is also available in Windsor Heights

58 23 50 77 53 80 Purchase Refinance Home ImprovementExterior Repair Down Payment 70 60 50 40 30 20 10 0 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $0 14 $2,564,915 $1,774,748 $1,943,465 $633,000 $5,709,704 Number of Loans and Total Lending Amounts Number of Loans Total Lending Loan Types ACTIVITIES
Number of LoansTotal Lending $$

Journey to Homeownership (J2H) provides educational tools and resources to support African Americans looking to become homeowners. The core part of the J2H initiative is a down payment assistance program. Due to J2H, we were able to fulfill the dreams of homeownership for a father and his son. Wilson Sr was referred to NFC by the Evelyn K Davis Center, and shortly after he started working with us, his son reached out to start the pre-qualification

process. In just over two months, both father and son purchased their first-ever home and chose to live near each other on the same street. Both used the Journey to Homeownership deferred loan, along with other NFC programs. Each of their homes will have new upgrades that will make homeownership less expensive and reduce maintenance costs in the future.

Loans to Communities of Color

NFC increased our lending to communities of color from 13.8% of total borrowers in 2021 to 17.9% in 2022. This included doubling the percentage of African American households from 5.1% in 2021 to 10.8% in 2022. Historically, NFC has been able to increase our lending to community of color households when down payment funds are available. This is one reason we were excited to launch Journey to Homeownership.

13.8% of total loans

17.9% of total loans


1 Home Renovated

11 Homes New Construction

6 Properties Sold

1912 6th Ave. Des Moines, IA 50314-3331


Moving to 4908 Franklin Ave. in May 2023.

Properties, LLC is a subsidiary of NFC that purchases and renovates homes and builds new homes that are sold to homebuyers in our Des Moines Lending Area. In 2022, NFC built 3 homes in Partnership with Invest DSM. For 14 years, NFC Properties has been providing quality homes in the neighborhoods we serve.


NFC Cedar Rapids (NFC) launched in 2018, and closed our first loan in January 2019. This initiative is only possible due to the City of Cedar Rapids and their annual contribution of over $5 million to-date, local financial institutions that provided $8 million lending capital, and initial donors that provided start-up operational funds.

In 2022, the Cedar Rapids Office moved to the new Collins Community Credit Union building at 1800 First Ave NE. NFC is very appreciative of Collins Community Credit Union for their generous donation of our office

131 Households Assisted $65,314 Average Loan Amount

Leverage $7.84 of Private, NFC & Federal Funds for every $1 of local funds

Value increased by $1.57 for every $1 of subsidy


Neighborhood Finance Corporation

Cedar Rapids is a proud partner in the Linn County PATCH program that was created to provide emergency repair and forgivable loans to homeowners impacted by the August 10, 2020 derecho storm. The other partners are Waypoint, the Housing Fund for Linn County, Matthew 25, HACAP, Cedar Valley Habitat for Humanity, ECICOG, the City of Cedar Rapids, Linn County and other local governments throughout Linn County. This partnership has assisted 81 homeowners complete over $1.5 million in repairs that were not covered by insurance or federal relief.

81 Derecho Recovery Forgivable Loans


Total Derecho Forgivable Loan Amount

Local Financial Institutions Provided $8 Million Lending Capital


Bankers Trust Company

Community State Bank

Cedar Rapids Bank and Trust

Collins Community Credit Union

Farmers State Bank

First Federal Credit Union First Interstate Bank

Hills Bank & Trust Company

Kerndt Brother Savings Bank

US Bank, N.A.

Donors for the initial $800,000 in start-up costs to NFC Cedar Rapids

Alliant Energy

Anderson Bogert Engineers

Armar Ventures LC

Armstrong Development

Bankers Trust Company

Bradley & Riley PC

Cedar Rapids Area Association of REALTORS

Cedar Rapids Bank & Trust

Dave Schmitt Construction

Diamond V

Down to Earth Development

Greater Cedar Rapids Community Foundation

Hillcrest (Parent company CRST International)

IMON Communications

Kings Material, Inc.

Lil’ Drug Store Products

Longfellow Square LC

McGrath Family of Dealerships

Mercy Medical Center

Physician’s Clinic of Iowa, P.C.

Rathje Construction

Schimberg Company

Shuttleworth and Ingersoll

Skogman Homes

TCC Investments LLC

True North

United Fire Group

UnityPoint Health

University of Iowa Community Credit Union

US Bank

Van Meter, Inc.

Wells Fargo Bank

World Class Industries (WCI)

Worley Warehousing Inc.

1800 First Ave. NE, Suite LL 1 Cedar Rapids, IA 52402 319-777-7127
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