Neighborhood Finance Corporation
Public records show a registered, tax-exempt organization in good standing.
What it says it does
Neighborhood Finance Corporation provides unique lending programs and related services to facilitate neighborhood revitalization in Polk and Linn Counties through partnerships with residents, governments, community-based organizations, financial institutions and the business community.
- Income
- $11.4 million
- Spending
- $7.2 million
- Spent on programs
- 83%
- Reserves
- 24.2 months of spending
- Largest source of income
- government grants, 69%
- Employees
- 27
- Volunteers
- 37
- Highest pay
- $213,485, executive director
Source: Form 990 for the year ending December 31, 2024, filed with the Internal Revenue Service. Rating method 2026.2. How we rate
Financial health
Good: 85 out of 100. Higher than 78% of charities in its peer group (housing, $10m to $100m).
Reserves
35 of 35Spendable reserves would cover 24.2 months of spending.
Debt
10 of 20It owes 43% of what it owns.
Living within its means
15 of 15Income exceeded spending by 37% of income.
Income trend
10 of 15Income fell 1% on the year before.
Spending floor
15 of 1583% of spending went to programs and raising each dollar of donations cost 0 cents.
Source: Form 990 for the year ending December 31, 2024, filed with the Internal Revenue Service. Rating method 2026.2. How we rate
Governance
Strong: 100 out of 100. Higher than 44% of charities in its peer group (housing, $10m to $100m).
Independent board
25 of 2516 of 16 voting board members are independent.
Conflict of interest policy
15 of 15Has a written conflict of interest policy.
Whistleblower policy
8 of 8Has a written whistleblower policy.
Record keeping policy
7 of 7Has a written policy on keeping and destroying records.
Board minutes
5 of 5Keeps minutes of board meetings.
Board sees the tax return
10 of 10Gave the board a copy of this return before filing it.
Pay set independently
5 of 5Sets its chief executive's pay through independent review and comparison.
Independent check of accounts
15 of 15Its accounts were audited by an independent accountant.
No reported misuse
10 of 10Reports no diversion of assets, excess benefits or loans to insiders.
Source: Form 990 for the year ending December 31, 2024, filed with the Internal Revenue Service. Rating method 2026.2. How we rate
Impact evidence
Describes programs. Its tax return describes what it does but we have found no measurable results in it.
Programs described in its return (4)
- $1.8 million spent. 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 2024, NFC closed 216 loans. Clients were served through our purchase, second mortgage, refinance and home improvement loan products as well as Polk County Large Renovation and Polk County Down Payment deferred loans. The total dollar amount of repayable loans closed in 2024 was $10,477,952. Purchase loan, second mortgage, refinance and home improvement transactions were completed in areas of Polk County and Cedar Rapids that are identified as areas for revitalization. In 2024 NFC launched a new commercial lending line of business to support the development of affordable homeownership and rental housing. There were 3 construction loans and 1 multi-family commercial loan in 2024 totaling $1,634,477.The neighborhoods are typically low to moderate (low-mod) income census tracts. In 2024, 215 primary loans (not including second mortgages, NFC Neighborhood Reinvest, NeighborhoodLIFT , Journey to Homeownership, Energy Advantage Deferred, Polk County Down Payment Assistance, or Polk County Large Renovation loans) were closed, while 152 closed were made to borrowers that were in low-mod income and/or NFC investment area census tract and/or low-mod income for Polk County, Iowa and Cedar Rapids, Iowa. Of these 215 loans, 61 loans were made to borrowers that have low-mod income and are in low-mod income and/or NFC investment area census tracts; 33 were made to borrowers with low-mod income, but not in low-mod income and/or NFC investment area census tracts; 58 loans were made to borrowers in low-mod income and/or NFC investment area census tracts, but do not have low-mod income; the other 63 loans closed were made to borrowers that are not low or moderate income or in a low-mod income and/or NFC investment area census tract. In 2024, 70.7% of repayable loans closed were to either low-mod borrowers, low-mod income and/or NFC investment area census tract or both. In 2024, 82.5% of home purchase loans closed were to first time home buyers.Though residential lending remains NFC's primary mission, residential mortgage loans closed through NFC are to owner occupants. The number of home purchase loans closed in 2024 was 40. NFC closed 21 second mortgages, 169 home improvement loans, 6 refinance loans, 38 Energy Advantage Deferred Loans, 60 Polk County Large Renovation loans (17 of 60 were NFC borrowers), and 69 down payment assistance deferred and forgivable loans (33 NFC down payment loans, 13 Journey to Homeownership (J2H) loans (6 of 13 were NFC borrowers), and 23 Polk County Down Payment Assistance loans (9 of 23 were NFC borrowers)).NFC launched a down payment program specifically for NFC borrowers in 2019. It is called Neighborhood Reinvest, and provides a $10,500 0% interest 30 year deferred loan to homebuyers earning below 100% of the area median income. Neighborhood Reinvest was created to overcome a primary barrier to homeownership for low and moderate income households. The deferred loan can be used towards down payment and closing costs assistance for eligible homebuyers who purchase a home utilizing NFC financing in NFC 's lending areas in Polk County, Iowa and Cedar Rapids, Iowa. The loan is structured as a 'soft second' mortgage loan that is deferred until there is a cash-out refinance or the home is sold or 30 years, whichever occurs first.In 2023, NFC launched the Polk County Down Payment Assistance Program. The Polk County DPA increases homeownership opportunities for households earning less than 80% of the areas median income. The goal is to create sustainable homeownership which results in wealth building, housing stability and stronger neighborhoods. NFC closed 23 Polk County DPA loans in 2024.In addition, in 2023, NFC launched the Polk County Large Renovation. Homeowners with household incomes below 80% of the Polk County area median income limit are eligible for a deferred loan to go towards repairs to their home. The goal is to create sustainable and safe living conditions for existing homeowners who may not otherwise qualify to make repairs on their own due to income or credit. In 2024, NFC closed 48 Polk County Large Renovation loans.Lastly, in 2023, NFC launched the Energy Advantage program, which offers a deferred loan to NFC borrowers who are adding or replacing energy efficient appliances and/or products in their home. Energy Advantage loans are offered in Cedar Rapids and Polk County, and funded by local governments. NFC closed 34 Energy Advantage loans in 2024.
- $2.9 million spent. Forgivable Loan: As stated in loan origination description, each transaction that NFC provides to our borrowers includes a forgivable loan for property rehabilitation. 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 forgivable loans totaling $61,377,391 through December 31, 2024.In 2024, NFC closed $1,637,810 in forgivable property rehabilitation loans and $78,000 in closing costs forgivable loans.All NFC loans for home purchase have a home inspection. In Polk County, this role is provided by a full-time renovation coordinator that is on the NFC staff. In Cedar Rapids, this is provided by a city employee. In both locations, the renovation coordinator makes sure all code violations at the property are addressed through the homeowner's property rehabilitation projects. The renovation coordinator reviews all bids for cost reasonableness and provides authorization for payout once the property rehabilitation project is properly completed and meets the borrower's satisfaction. The renovation coordinator notifies NFC when the project is completed and verifies that it was done 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.
- $264,723 spent. At NFC Properties LLC, our goal is to provide safe, affordable, quality housing to owner occupants. In 2024 NFC Properties LLC acquired 11 properties. Of those 11 properties, 1 was an existing home and 10 were infill lots within the City of Des Moines for new construction in primarily low and moderate income census tracts. During 2024, 5 units in NFC Properties LLC housing inventory completed rehabilitation, and 8 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.
- $1.0 million spent. The Home Buyer Education services are offered in Polk and Linn counties through service agreements with local nonprofit HUD approved housing counseling agencies. These services are offered in an individual, classroom, and online format. NFC refers home buyers for home buyer education and existing homeowners for financial/debt management and budgeting. During 2024, NFC, through our partner organizations, provided home buyer education to 95% of home buyers, and budget and credit counseling and education to 8.6% of existing homeowners. In total, 18.6% of NFC borrowers received education and/or counseling through our partner agencies. Education was completed through HUD approved housing counseling agencies in Des Moines and Cedar Rapids, Iowa, or through HUD approved online platforms.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 $33,537,687 and $32,285,687 respectively, through December 31, 2024. During 2022, the city and the county extended their agreement until June 2027. The city and the county will each contribute at least $1,000,000 annually through the year 2027. NFC Cedar Rapids LLC has an agreement with the City of Cedar Rapids, wherein the City of Cedar Rapids agreed to contribute money for the express purpose of funding neighborhood housing revitalization programs within the City of Cedar Rapids. Under the agreement, cumulative contributions by the City of Cedar Rapids have totaled $6,000,000 through December 31, 2024. The City of Cedar Rapids will contribute at least $500,000 annually through the year 2028. Except in fisal year 2024, NFC declined the payment due to city budget constraints and NFC having enough capital for forgivable loans and reserves.NFC has agreements with the City of West Des Moines, City of Urbandale, 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 $1,600,000, cumulative contributions by the City of Urbandale have totaled $296,000, and cumulative contributions from the City of Windsor Heights have totaled $75,000.
Source: Form 990 for the year ending December 31, 2024, filed with the Internal Revenue Service. Rating method 2026.2. How we rate
Legitimacy checks
Is it registered with the IRS? Passed.
Listed in the IRS master file of tax-exempt organizations as a 501(c)(3) charitable organization.
Source: Exempt Organizations Business Master File, Internal Revenue Service, file dated October 13, 2026.
Has the IRS revoked its tax-exempt status? Passed.
Not on the IRS automatic revocation list.
Source: Automatic revocation of exemption list, Internal Revenue Service, file dated November 6, 2026.
Are donations tax-deductible? Passed.
On the IRS list of organizations eligible to receive tax-deductible contributions.
Source: Publication 78 data: organizations eligible for tax-deductible contributions, Internal Revenue Service, file dated October 13, 2026.
Is it keeping up with its IRS filings? Passed.
Most recent return on file covers the year ending December 2024.
Source: Exempt Organizations Business Master File, Internal Revenue Service, file dated October 13, 2026.
How long has it been tax-exempt? Passed.
Recognized by the IRS since May 1990.
Source: Exempt Organizations Business Master File, Internal Revenue Service, file dated October 13, 2026.
Is it in good standing with state regulators? Passed.
Not on California's list of charities barred from soliciting. Other states are not yet checked.
Source: May Not Operate or Solicit for Charitable Purposes list, California Attorney General, Registry of Charities and Fundraisers, file dated November 4, 2026.
Ratings and checks are our reading of public records, using the published method. They are not a statement about anyone's honesty. If you work for this organization, you can send corrections or results, confirm you want gifts through Veridonate, or ask to be removed from giving.