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Income Limits

Income limits provides an overview of the qualifying income for each program offered by the Chenoa Fund. The Chenoa Fund offers three second lien products that are issued in conjunction with first mortgages that are FHA insured or Conventional loans. See Programs for details.

 

The following provides accepted methods by CBC Mortgage Agency for calculating Area Median Income.

 

  • Chenoa Fund Rate Advantage Program
    • In order to qualify for this program, the borrower must have a

      • Qualifying Income: < or = 115% AMI
      • Household Income Worksheets are no longer required
      • Requires monthly payment
      •  FICO Scores 640 minimum
      • 10-Year term 8% Interest rate
      • Non-occupant co-borrowers are not allowed
      • No concurrent homeownership
      • Max DTI 50%
      • Manual underwrites are not allowed

  • Chenoa Fund DPA Edge Repayable Second
    • In order to qualify for this program, the borrower must have a

      • Qualifying Income: > 115% AMI
      • Requires monthly payment
      • FICO Scores 620 minimum
      • 10-Year term 0% interest rate
      • 30-Year term 5% interest rate

       

      The DPA Edge FHA overlays include

      • Only offered for single-family and two-unit properties.
      • Three to four-unit properties not allowed.
      • Borrowers whose credit scores are between 620 to 639 must complete pre-purchase homebuyer counseling prior to closing
        • Lenders are advised to be sure they notify their borrowers that they need to complete this pre-purchase counseling 14 to 21 days before closing.

  • Chenoa Fund DPA Edge Forgivable Soft Second
    • In order to qualify for this program, the borrower must have a

      • Qualifying Income: < or = 115% AMI
      • No monthly payment
      • FICO Scores 620 minimum
      • 0% Interest Rate and 30-year Term
      • Forgiven after 36 consecutive on-time payments on first mortgage

       

      The DPA Edge overlays include

      • Only offered for single-family and two-unit properties
      • Three to four-unit properties not allowed
      • Borrowers whose credit scores are between 620 to 639 must complete pre-purchase homebuyer counseling prior to closing
        • Lenders are advised to be sure they notify their borrowers that they need to complete this pre-purchase counseling 14 to 21 days before closing.

  • 97% LTV Conventional Standard
    • In order to qualify for this program, the borrower guidelines are as follows:

      • No borrower investment required
      • Single family only
      • No income limits
      • Purchase only
      • All borrowers must have a minimum FICO score of 640
      • 30-year Fixed Rate Mortgage
      • Second lien is a 10-year fixed rate mortgage with an interest rate no higher than 2% of the first mortgage
      • MI Coverage 35%
      • DU®1 Only – to 97
      • Concurrent homeownership not allowed, and at least one borrower must be first-time homebuyer
      • No Homebuyer Education class required

       

      Go to the Chenoa Fund Program Guidelines for details,

      Go to the Fannie Mae Selling Guide ,

       

      1DU® is a registered trademark of Fannie Mae.

  • Fannie Mae HomeReady®
    • In order to qualify for this program, the borrower guidelines are as follows:

      • No borrower investment required
      • Single family only
      • No income limits in low-income census tracts
      • 100% of area median income (AMI) in all other census tracts
      • Purchase only
      • All borrowers must have a minimum FICO score of 640
      • 30-year fixed rate mortgage
      • Second lien is a 10-year Fixed Rate Mortgage with an interest rate
      • 2% higher than the first mortgage
      • DU®2 only to 97% LTV
      • Concurrent homeownership allowed
      •  Requires borrower to take homebuyer education class

       

      Go to the Chenoa Fund Program Guidelines for details

      Go the Fannie Mae Selling Guide

       

      1HomeReady® is a registered trademark of Fannie Mae.
      2DU® is a registered trademark of Fannie Mae.

  • Calculating Area Median Income: Primary Method
    • CBC Mortgage Agency understands that there are many Area Median Income websites that allow you to calculate the area median income for your borrowers. We ask they you use the HUD Area Median Income site when working with borrowers who will be using CBCMA down-payment assistance programs and who are receiving a FHA insured first mortgage as we consider this site to be our standard.

       

      If a borrower qualifies under a different website but does not qualify with the HUD Area Median Income site, the CBCMA Locks and Registrations team will reject the borrower underneath those program guidelines.

       

      We suggest you use the site as follows:

      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.”

       

      Note: This is a third-party site. CBCMA State Restrictions still apply, even if you see the option here.

      1. For families with a size of 1-4, you’ll want to pull the number from the “Median Family Income” column.
      2. You determine the AMI by multiplying the Median Family Income by 115%. For example: $69,100.00 x 115% = $79,465.00

  • Calculating Area Median Income: Alternative Method
    • There is an alternative calculation method allowed within the UW comments on the 1008. This is for families sized greater than 4 (5 and up), use this method.

      1. First, locate the appropriate family size underneath the “Persons in Family” column, in the “Very Low (50%) Income Limits” row.
      2. Find the appropriate income limit, and then multiply that number by two.
      3. Then, multiply that number by 115%. For example, using a family of 6: $40,100 x 2 = $80,200 X 115% = $92,230
      4. For the HomeReady®1 income limits, please use Fannie Mae Median Income charts which are built into DU®2 or available online. (link to Fannie Mae income tool)

       

      1HomeReady® is a registered trademark of Fannie Mae.
      2DU® is a registered trademark of Fannie Mae.

Requesting Information

If you would like more information about this program, please contact our program development team.

Phone: 866-563-3507

Email: info@chenoafund.org

CBCMA Does Not Originate Mortgage Loans. This is not an offer to lend money nor a solicitation of a mortgage application by CBCMA.