Chenoa Fund DPA For FHA loans offers one product with a repayable and forgivable option. For all products the borrower will need to have a credit score of 600 or higher,
Repayable: This loan has a 10-year term with an interest rate 2% higher than the interest rate on the FHA first mortgage. This loan does require a monthly payment on the second mortgage.
Forgivable: This loan has a 30-year term with an interest rate of 0% (0% APR). This loan does not require a monthly payment on the second mortgage. Forgiveness is determined by the DPA amount:
Both forgivable loan options may be forgiven at the end of the 30-year term if the previous forgiveness conditions have not been met, even if the borrower made late payments on the FHA first mortgage. The loan will need to be repaid upon transfer of ownership or refinance if it is not already forgiven.
*Neither CBC Mortgage Agency nor any of the Chenoa Fund™ products are approved by or affiliated with Fannie Mae. It is the originating lender’s responsibility to ensure that the use of CBC Mortgage Agency second mortgages, the first mortgage, and the combination of the first and second mortgages are compliant with Fannie Mae requirements.
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.
1HomeReady® is a registered trademark of Fannie Mae.
2CBC Mortgage Agency’s correspondent guidelines include additional overlays to the HomeReady® program.
3% and 5% DPA / No income limits / Minimum FICO score of 640 / Second lien is a 10-year fixed rate mortgage with an interest rate 2% higher than the first mortgage
CBC Mortgage Agency offers down payment assistance to those who qualify for a 90–97% LTV 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. CBC Mortgage Agency offers 3% and 5% down payment assistance through the Chenoa Fund™ program if the borrower qualifies.
To qualify for Chenoa Fund™ down payment assistance the borrower will need to meet a minimum credit score of 620 and all other guidelines for the Standard Conventional (90–95% LTV), Conventional 97, or HomeReady® programs. CBC Mortgage Agency’s correspondent guidelines may include additional overlays to the HomeReady® program2*.
*Neither CBC Mortgage Agency nor any of the Chenoa Fund™ products are approved by or affiliated with Fannie Mae. It is the originating lender’s responsibility to ensure that the use of CBC Mortgage Agency second mortgages, the first mortgage, and the combination of the first and second mortgages are compliant with Fannie Mae requirements.
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.
