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• Chenoa Fund™ DPA for FHA Loans

This product has no AMI limits for qualification. Borrowers will need to be below 135% AMI to receive the best pricing.

• Calculating Area Median Income: Primary Method

CBC Mortgage Agency understands that there are many websites that help you to calculate the area median income for the borrowers. We ask that you use the HUD Area Median Income site when working with borrowers who will be using Chenoa Fund™ down payment assistance and who are receiving an FHA-insured first mortgage as we consider this site to be our standard.

Access the HUD AMI:

1. Go to the HUD Area Median Income Site
2. Select the most recent fiscal year
3. Select the “State”
4. Select the “County”
5. Click “View County Calculations”
6. For families with a size of 1–4, select the higher of the following:
   1. The number in the “Median Family Income” column
   2. The number in the “Persons in Family” column (“Very Low Income Limits” row, 4 persons); multiply this number by two
7. Multiply the above number by 135%
   1. For example: $69,100 x 135% = $93,285

Notes:

This is a third-party site. CBC Mortgage Agency state restrictions still apply, even if you see the option here.

Sometimes persons with 4 or fewer members in their family will find a higher AMI limit when using the alternative method. If this is the case, use the higher number.

Borrowers do not need to be under this AMI limit to meet the requirements for Chenoa Fund™ DPA For FHA Loans.

• Calculating Area Median Income: Alternative Method

There is an alternative calculation method allowed within the UW comments on the 1008. For families sized 4 and up, use this method.

1. Go to the HUD Area Median Income Site
2. Select the most recent fiscal year
3. Select the “State”
4. Select the “County”
5. Click “View County Calculations”
6. Go to the “Persons in Family” column and the “Very Low Income Limits” row
7. Use the number under the appropriate family size
8. Multiply the above number by two
9. Multiply the above number by 135%
   1. For example, using a family of 6: $40,100 x 2 = $80,200 x 135% = $108,270

 

Notes:

This method may be used for families with 4 or fewer persons if this method results in a higher number than the primary method.

CBCMA will require a letter of explanation if more dependents than are listed on the 1003 are used to determine the AMI limit for the file.

Being under the AMI limit is not necessary for borrowers to qualify for Chenoa Fund™ DPA For FHA Loans.