General Overview—Homebuyers

Chenoa Fund™ is operated by CBC Mortgage Agency, a subsidiary of Cedar Band Corp.The Chenoa Fund™ program is designed to increase access to homeownership for creditworthy families.

Disclaimer: Richard Ferguson is the former president of CBC Mortgage Agency. Miki Adams is the current president.

It’s our core belief that everyone in America deserves access to affordable housing and it’s our mission to help make that happen. We provide tools that open doors to homeownership for individuals who have the income and credit history to afford and maintain a home but may lack the ability to accumulate a down payment. CBCMA partners with reputable mortgage lenders on a correspondent basis to provide down payment assistance for qualified homebuyers in the form of second mortgages.

Homeownership isn’t for everyone—but housing is. While we have minimum credit scores and debt-to-income ratio restrictions that may put some borrowers out of the reach of our direct assistance, we believe that by assisting creditworthy families to overcome barriers we can reduce the competition for rental housing. This in turn helps to reduce rental housing costs and increase its availability for those we cannot assist directly.

The Chenoa Fund™ program consists of various down payment assistance products in the form of second mortgages. Buyers who meet our eligibility criteria may receive a second mortgage to cover their minimum down payment requirement when purchasing a home using an FHA loan; in addition, some of our down payment assistance options also provide a little closing cost assistance. We believe that, by helping responsible homebuyers meet the minimum investment required for a mortgage, we create healthier communities and improve the balance between homeownership and other housing types. The Chenoa Fund™ down payment assistance products are as follows:

Chenoa Fund™ DPA for FHA Insured Loans

Buyers will need a minimum credit score of 600 to qualify for Chenoa Fund™ assistance for an FHA loan. Down payment assistance is 3.5% or 5% of the lower of the purchase price of the home or its appraised value, which may be applied toward the down payment or closing costs, or both. Borrowers have the choice between repayable assistance and forgivable assistance:

  • Repayable: 10-year term with an interest rate 2% higher than the mortgage interest rate. This product is fully amortized with a fixed rate.
  • Forgivable: 30-year term with a 0% interest rate (0% APR) and no monthly payments. This product is forgiven (i.e. turned into a grant) at the borrower’s request when the forgiveness conditions are met, which are determined by the DPA amount:
    • 3.5%: Forgivable after 36 consecutive, on-time payments on the mortgage.
    • 5%: Forgivable after the initial 120 payments on the first mortgage.

Requesting Information

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

Phone: 866-563-3507


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