The Chenoa Fund is an affordable housing program administered by CBC Mortgage Agency (CBCMA), a federally chartered government entity. CBCMA specializes in providing down payment assistance financing under FHA and conventional guidelines.
CBCMA has a mission to increase affordable and sustainable homeownership, specifically for creditworthy, low- and moderate-income individuals. CBCMA partners with reputable mortgage lenders on a correspondent basis to provide loans for qualified homebuyers. CBCMA has several program options to choose from that include down payment assistance in the form of second mortgages on:
- Conventional loans
- FHA-insured loans
Chenoa Fund Down Payment Assistance Loans
While many people do manage to purchase a home by saving for a down payment over a period of years, increasing home prices and stagnant or low wages can make this quite difficult. By helping responsible home buyers to overcome the challenge of the minimum investment required for a mortgage, CBCMA is helping to create healthy communities by improving the balance between homeownership and other types of housing. This way, new homeowners can start now building equity for their future, rather than potentially waiting for years to save a down payment while home prices may become even more unaffordable.
Chenoa Fund provides the down payment to assist you with a home purchase. There are no first-time borrower requirements. The following are the primary programs offered by CBCMA.
Chenoa Fund DPA Edge Soft Second product. With this program, you receive a 30-year term, 0% interest rate, no monthly payment second mortgage. You will need to meet the minimum credit score of 620 and have a qualifying income equal or less than 115% of the median income for the county in which the you will live. The loan is forgivable under conditions dependent on the down payment assistance amount:
- 3.5%: Forgivable after 36 consecutive, on-time payments on the FHA first mortgage. This forgiveness period resets if you have a late payment.
- 5%: Forgivable after the initial 120 consecutive, on-time payments on the FHA first mortgage. This forgiveness period is terminated if you have a payment that is 60+ days late, but the loan will remain with a 30-year term, 0% interest rate, and no monthly payment.
Chenoa Fund Edge: Repayable Second product. With this program, there are no income limitations. There are two options for a repayable second. You can choose a 10-year repayable second at 0% interest rate or a 30-year repayable second at 5% interest rate. You will need to meet the minimum credit score of 620. This product offers 3.5% down payment assistance.
Chenoa Fund Rate Advantage program. With this program, you are able to lock their first mortgage at market comparable rate. You will need to meet the minimum credit score of 640, have a debt to income ratio of 50% or less, and have a qualifying household income less than or equal to 135% of the median income for the county in which you will live. The Rate Advantage program offers both 3.5% down payment assistance and 5% down payment assistance.
CBCMA offers down payment assistance to those who qualify for a 97% LTV conventional first mortgage under Fannie Mae®’s HomeReady® program1 for low to moderate income borrowers, with expanded eligibility for homes in low-income communities. If you do not fit the HomeReady® criteria but may not have the resources for a larger down payment on a home purchase, you may still qualify for the standard conventional 97% loan-to-value program and receive assistance from CBC Mortgage Agency for the down payment and some closing costs.
You may receive up to 3.5% down payment assistance if you qualify.
There are no household income limits under a conventional standard 97% LTV program. You will need to meet minimum credit score of 640 and all other guidelines for the conventional standard 97% LTV or HomeReady® programs. CBCMA’s correspondent guidelines may include additional overlays to the HomeRead® program. 2 *
*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 the combination of the CBCMA first and second mortgages are compliant with Fannie Mae® requirements.
CBCMA Does Not Originate Mortgage Loans. This is not an offer to lend money nor a solicitation of a mortgage application by CBCMA.
1 HomeReady® is a registered trademark of Fannie Mae.
2 CBCMA’s correspondent guidelines include additional overlays to the HomeReady® program.