Did you know? CBC Mortgage Agency’s Chenoa Fund down payment assistance allows some borrowers to purchase duplexes, provided the down payment assistance product used is one of the DPA Edge products. This makes Chenoa Fund’s DPA Edge products unique because few statewide down payment assistance programs include duplexes among the home types that a borrower can buy. Purchasing a duplex may be an excellent way for a borrower to turn a new home into an immediate investment, or a great opportunity to stay close to family.
So how does it work?
To start, let’s briefly review the products themselves and how to access them. CBC Mortgage Agency’s Chenoa Fund down payment assistance has two different DPA Edge options: the Forgivable Second and the Repayable Second. These down payment assistance (DPA) products must be paired with FHA loans. The DPA Edge Forgivable Second is a loan that may be “forgiven,” after a certain period of time (Forgiveness conditions may be found on this page on our website.) Borrowers who don’t meet the requirements for the forgivable second may qualify for the DPA Edge Repayable Second, a repayable loan that offers two different repayment terms (viewable on the same link mentioned above). Both of these down payment assistance products may provide either 3.5% or 5% down payment assistance.
When purchasing a duplex with Chenoa Fund DPA, you must occupy at least one of the units as your primary residence.
CBC Mortgage Agency works with correspondent lenders to offer the Chenoa Fund down payment assistance program. To find out if your lender offers Chenoa Fund, or to learn about lenders in your area that do offer Chenoa Fund, please reach out to our information team at info@chenoafund.org.
But why would a borrower want to buy a duplex?
There are definitely some risks to buying a duplex. On average, duplexes are more expensive than a single-family residence and it may be a little harder to qualify for a loan. In addition, becoming a landlord requires a time commitment and there can be added expenses for repairs and vacancies. But for borrowers in the right position, the advantages may outweigh the risks. Owning a duplex has the potential to become an investment and generating enough cash flow to help offset your monthly mortgage.
Multigenerational households are more common than you think
But investments aren’t the only reason a family might be interested in a duplex. About one in four individuals in the US lives in a multigenerational household—grandparents, parents, and children, all under one roof. This living arrangement can be made to work in a traditional single family residence, and often is, but it can also make things feel cramped by virtue of how the house is set up. In a duplex, grandma and grandpa can have their own space, feel independent, while still being very close to the rest of the family—definitely close enough for mom and dad to look after them while still giving mom and dad their own space with their own kids! In short, a duplex may help a multigenerational family have the best of all worlds, independence and family closeness.
So, if you’re interested in purchasing a duplex, reach out to your real estate agent and ask about CBC Mortgage Agency’s Chenoa Fund program that may help you purchase your dream home.
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, 100 West Randolph, 9th Floor, Chicago, IL 60601 – 1-888-473-4858
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