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 or a Fannie Mae conventional 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:
Down Payment Assistance Offered in Conjunction with FHA-insured Mortgages
DPA Edge Soft Second. With this product, you receive a forgivable second mortgage. You will need to have a minimum credit score of 600 and have a qualifying income less than or equal to 115% of the median income for the county in which you will live. The loan is forgiven if the you meet the forgiveness conditions, which are determined by the down payment amount—3.5% or 5%.
The loan will need to be repaid upon transfer of ownership or refinance if it is not already forgiven.
DPA Edge Repayable Second. With this product, you do not have any income restrictions. You will need to have a minimum credit score of 600. This assistance must be repaid in full. This product offers 3.5% and 5% down payment assistance options.
Chenoa Fund™ Rate Advantage Program. With this program, you may be able to lock your first mortgage at a market comparable rate. You will need to meet a minimum FICO score of 640, have a debt-to-income ratio of 50% or less, and have qualifying income less than or equal to 135% of the median income for the county in which you will live. This product offers both 3.5% down payment assistance and 5% down payment assistance options.
Chenoa Fund™ Down Payment Assistance Offered with Conventional Loans
CBC Mortgage Agency offers down payment assistance to those who qualify for a 90–97% loan-to-value conventional first mortgage under Fannie Mae®’s HomeReady® program1 for low-to moderate-income borrowers. For those borrowers who do not fit the HomeReady® criteria, CBC Mortgage Agency also offers down payment assistance for the Fannie Mae™ Standard Conventional (90–95% LTV) and Conventional 97 programs. You will need to have a minimum FICO score of 620 and meet other conventional underwriting guidelines and Chenoa Fund™ program overlays. The down payment assistance amount may be 3% or 5%.
1 HomeReady® is a registered trademark of Fannie Mae.
CBC Mortgage Agency does not originate mortgage loans. This is not an offer to lend money nor a solicitation of a mortgage application by CBC Mortgage Agency.