90–97% LTV FNMA Conventional Mortgage Financing
Through the Chenoa Fund program, CBC Mortgage Agency offers two DPA products that get paired with FNMA first mortgages, the Conventional Standard 90–97% LTV and the Fannie Mae HomeReady®1. Chenoa Fund down payment assistance for FNMA conventional first mortgages is compliant with Fannie Mae requirements.
Overview. CBC Mortgage Agency provides a second mortgage in an amount of 3% that may be applied toward the borrower’s minimum required investment (down payment), closing costs, prepaid items, or any combination of the three for borrowers that qualify for a 90–97% LTV conventional loan. Borrowers receiving this assistance must meet the guidelines outlined for the Conventional Standard 90–97% LTV loans*.
As a lender, in order to offer these conventional products, you must have the ability to run DU®2.
To qualify for Chenoa Fund down payment assistance for conventional loans, the borrower must meet product criteria, including the following:
- Average middle FICO 620 or higher
- Debt-to-income ratio maximum based on credit score
Additional features3 for the conventional standard 90–97% LTV program:
- At least one of the borrowers must be a first-time home owner
- No Chenoa Fund™ income limit overlays under the conventional standard 90–97% LTV program
Additional features for Fannie Mae’s HomeReady®4 program:
- Home must be located in a low-income census tract, otherwise borrowers must not exceed 100% of area median income (AMI) per FNMA guidelines
- One of the loan applicants must complete the homeowner education course
90–97% LTV Standard Conventional Program Details: Here is a snapshot of borrower requirements and Chenoa Fund program overlay criteria:
- No borrower investment required
- Single family only
- No income limits
- Purchase only
- All borrowers must have an average middle FICO score of 620 or higher
- 30-year Fixed Rate Mortgage
- Second lien is a 10-year fixed rate mortgage with an interest rate 2% higher the first mortgage
- MI Coverage 35%
- DU® Only, 90–97% LTV
- Concurrent homeownership not allowed; at least one borrower must be first-time homebuyer
- No homebuyer education class required
Visit the Chenoa Fund Correspondent Lending Guide for details..
Go to the Fannie Mae Selling Guide.
Fannie Mae HomeReady® Program Details: Here is a snapshot of borrower requirements and Chenoa Fund program overlay criteria:
- No borrower investment required
- Single family only
- No income limits in low-income census tracts
- AMI per FNMA guidelines in all other census tracts
- Purchase only
- All borrowers must have an average middle FICO score of 620 or higher
- 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® Only, 90–97% LTV
- Concurrent homeownership not allowed
- Requires borrower to take homebuyer education class
Visit the Chenoa Fund Correspondent Lending Guide for details.
Go the Fannie Mae Selling Guide.
*Neither CBC Mortgage Agency nor the Chenoa Fund program are approved by or affiliated with Fannie Mae. It is the originating lender’s responsibility to ensure that the combination of the Chenoa Fund second mortgage and the FNMA first mortgage are compliant with Fannie Mae requirements.
1HomeReady® is a registered trademark of Fannie Mae.
2DU® is a registered trademark of Fannie Mae.
3CBCMA’s correspondent guidelines include additional overlays to the HomeReady® program.
4CBCMA’s correspondent guidelines include additional overlays to the HomeReady® program
5.772% APR for the second mortgage, assuming an interest rate on the first mortgage of 3.75% and assuming that all other program requirements are met.