Conventional Program

Chenoa Fund is an affordable housing program provided by CBC Mortgage Agency (CBCMA), a federally chartered governmental entity.  CBCMA’s mission is to increase affordable and sustainable homeownership, specifically for creditworthy, low- and moderate-income individuals. CBCMA partners with quality mortgage lenders on a correspondent basis.

CBCMA provides a second mortgage in an amount of 3.5% to meet the down payment requirement and assist with some of the closing costs for borrowers that qualify for a 97% LTV Conventional Loan. Borrowers receiving this assistance must meet the guidelines outlined for the conventional standard 97% LTV loans or HomeReady®* program. 1

*Neither the Chenoa Fund, CBCMA nor any of their products are approved by or affiliated with Fannie Mae. It is the originating lender’s responsibility to ensure that the use of CBCMA second mortgages, the CBCMA first mortgage, and combination of the CBCMA first and second mortgages are compliant with Fannie Mae requirements.

 

How does the borrower qualify for the Chenoa Fund Conventional program?
In order to qualify for the Chenoa Fund Conventional program, the borrower must meet program criteria, including the following:

  • Minimum FICO 640
  • Debt to income ratio per AUS findings (Max 50%)

Qualifications2 for the conventional standard 97% LTV program

  • At least one of the borrowers must be a first-time home owner
  • No income limits under the conventional standard 97% LTV program

Qualifications2 for Fannie Mae’s HomeReady® Program

  • Home must be located in a low-income census tract, otherwise borrowers must not exceed 100% of area median income (AMI)
  • One of the loan applicants must complete homeowner education course

 

Why was the Chenoa Fund Conventional program created?
Homeownership isn’t for everyone—but housing is. While CBCMA’s minimum credit scores and debt to income ratio restrictions may put some borrowers out of the reach of receiving direct assistance, CBCMA believes that through assisting credit-worthy families to overcome down payment barriers, CBCMA can reduce the competition for “rental” housing, which in turn helps to reduce its cost and increase its availability for those we cannot assist directly.

 

1 HomeReady® is a registered trademark of Fannie Mae.
2 CBCMA’s correspondent guidelines include additional overlays to the HomeReady® program.

 

CBCMA Does Not Originate Mortgage Loans. This is not an offer to lend money nor a solicitation of a mortgage application by CBCMA.

 

Requesting Information

If you would like more information about this program, please contact our program development team.

Phone: 866-563-3507

Email: info@chenoafund.org

CBCMA Does Not Originate Mortgage Loans. This is not an offer to lend money nor a solicitation of a mortgage application by CBCMA.