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Chenoa Fund™ is a down payment assistance program offered by CBC Mortgage Agency, which is a subsidiary of the Cedar Band Corporation. The Cedar Band Corporation is federally chartered and wholly owned by the Cedar Band of Paiutes, a constituent band of the Paiute Tribe of Utah. Loan products offered through the Chenoa Fund™ program are designed to increase access to homeownership for creditworthy families.

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. CBC Mortgage Agency 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 minimal overlays that may put some borrowers out of the reach of our direct assistance, we believe that by helping creditworthy families to overcome barriers we can reduce the competition for rental housing. This in turn helps to reduce its cost and increase its availability for those we cannot assist directly. The Chenoa Fund™ program consists of various down payment assistance offerings. Buyers who meet our eligibility criteria may receive a second mortgage to cover their 3.5% minimum down payment requirement when purchasing a home using an FHA-insured loan. We believe that, by helping responsible homebuyers meet that minimum investment required for a mortgage, we create healthier communities by improving 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.