CBC Mortgage Agency

NMLS: 1186381
912 W. Baxter Drive, Suite 150
South Jordan, Utah 84095

Main: 866.563.3507
Servicing: 866.563.7572
Fax: 435.237.0022

FHA Classic: The First Non-DPA Chenoa Fund Program

May 8, 2020 By

FHA Classic: Chenoa Fund’s First Non-DPA Program

A lot has changed in the mortgage industry recently; quarantines and shutdowns have forced everyone to evolve quickly in response to the coronavirus pandemic, and the results haven’t always been good. In particular, borrowers with low credit have been hit hard, and many can’t find lenders willing or able to originate loans for them because lenders are having a hard time selling loans for low-credit borrowers.

This problem can be remedied with the Chenoa Fund FHA Classic program. The FHA Classic is not a form of down payment assistance, nor does it include DPA; rather, it’s an option that enables lenders to originate loans with borrowers in low FICO brackets and then sell those loans.


Why should lenders consider using FHA Classic?

As mentioned previously, the coronavirus pandemic upset the mortgage industry: large aggregators currently aren’t interested in buying loans attached to borrowers that have a FICO score of less than 680. This situation prevents a large amount of borrowers from getting mortgages and, in turn, reduces income to lenders at a time when money is growing tighter; these lenders have no one to sell these loans to! (The exception being a few aggregators who won’t pay premium prices). This situation is understandable, but hardly desirable.

The FHA Classic program fills this gap for CBCMA’s correspondent lenders. These lenders can originate loans and have them bought by CBC Mortgage Agency, thus growing the pool of viable borrowers closer to pre-coronavirus levels. More borrowers means more loans and more income. The FHA Classic program also has a YSP favorable to lenders; contact our Locks team at locks@chenoafund.org to get more specific numbers.

In short, FHA Classic helps lenders beat the pandemic and responsibly make more money while serving more borrowers.

What are the requirements of FHA Classic?

The following summarizes FHA Classic’s program requirements:

1) No DPA or second mortgage

2) Minimum 640 FICO

3) Available for FHA purchase, Streamline refinance, rate and term refinance

4) No income limits

5) DTI 50% or less

6) 96.5% LTV

7) First time homebuyer not required

These simple requirements enable CBCMA to keep this program running.

How can I take advantage of this program?

You already have access to our program if you are a correspondent lender; contact your account executive, or info@chenoafund.org, to learn more.

If you aren’t a correspondent lender with CBC Mortgage Agency, contact info@chenoafund.org to learn how to join.