At CBC Mortgage Agency, our mission is to make homeownership more accessible—especially for those who might struggle to save for a down payment. If you’re exploring down payment assistance (DPA) options, a recent article by Erik J. Martin and updated by Aleksandra Kadzielawski for The Mortgage Reports breaks down how our program works. Here’s a quick summary of their helpful overview along with some updated program information.
What Is the Chenoa Fund?
The Chenoa Fund is a national down payment assistance program provided by CBC Mortgage Agency (CBCMA). It’s designed to help borrowers—especially low- to moderate-income and first-time homebuyers—qualify for an FHA loan by covering the required 3.5% down payment. However, you don’t have to be a first-time buyer to qualify.
How Much Down Payment Assistance Is Available?
Depending on the program, eligible homebuyers can receive 3.5% or 5% of the purchase price as a second mortgage. This assistance can be either forgivable or repayable, depending on the structure chosen by the qualified homebuyer and their lender.
Program Options Paired with FHA Loans
The Chenoa Fund program offers two key program types:
Repayable (formerly called DPA Advantage): Offers a repayable 3.5% or 5% second mortgage with competitive interest rates. Requires a credit score of at least 600. This program does not have income limits and first-time and repeat homebuyers are welcome to apply. A monthly second mortgage payment is required for the repayable DPA loan.
DPA Forgivable (formerly called DPA Edge): An interest-free second mortgage that’s fully forgivable after 36 months of on-time payments on the primary mortgage. These payments must be made consecutively. If a borrower is late on a payment the forgiveness period, or the requirement period for 36 on time payments, starts over. Minimum credit score is 600. This program does not have income limits and first-time and repeat homebuyers are welcome to apply. It is also important to note that if a borrower needs to sell, transfer title, refinance, or defaults, before the 36 month period is up, the full amount of the down payment assistance will become due.
How to Apply
To access Chenoa Fund DPA, borrowers must apply and be approved with an approved lender. To find one, contact us at info@chenoafund.org or call 866-563-3507, and we’ll connect you with participating loan officers in your area.
This summary is based on the article “How to Get Chenoa Fund Down Payment Assistance” by Erik J. Martin and updated by Aleksandra Kadzielawski for The Mortgage Reports.
Want to learn more? Visit our Homebuyer Resources page or contact us.
Equal housing opportunity.
CBC Mortgage Agency NMLS # 1186381 For licensing information, go to: www.nmlsconsumeraccess.org.
Illinois Residential Mortgage License #MB.6761292. Illinois Department of Financial and Professional Regulation, Division of Banking, 555 W. Monroe St., Suite 500, Chicago, IL 60661 – 1-888-473-4858. Georgia Residential Mortgage Licensee, License # 1186381. The Chenoa Fund program is not currently offered in New York. This video is for information purposes and is not a commitment to lend.
