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.
The rate advantage product is offered by cbc mortgage agency.
The rate advantage product is a second mortgage that gets paired with an fha loan; this product offers 3.5% assistance or 5% assistance, which may be applied toward the borrower’s minimum required investment (down payment), closing costs, or prepaid items.
The rate advantage has a 10-year term with an interest rate of 6% (6.022% apr). The rate advantage product provides a lower interest rate on the first mortgage than the dpa edge products.
In order to qualify for this product, the borrower must have:
Visit the chenoa fund correspondent lending guide for details.
Go to the hud handbook for details.
The dpa edge repayable second product is a forgivable second mortgage that gets paired with an fha-insured first mortgage. Cbc mortgage agency, through chenoa fund, lends 3.5% to cover the borrower’s down payment; this assistance may be applied toward the minimum required investment (down payment), closing costs, or prepaid items, or any combination of the three.
The repayable second product has a term of either 10 years (with a 0% interest rate, 0% apr) or 30 years (with a 5% interest rate, 5.009% apr), at the choice of the borrower.
Advantages of the dpa edge repayable second product include:
This product has the following features:
The dpa edge repayable second fha overlays include:
Visit the chenoa fund correspondent lending guide for details.
Go to the hud handbook for details.
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:
Additional features3 for the conventional standard 90–97% ltv program:
Additional features for fannie mae’s homeready®4 program:
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.
90–97% ltv standard conventional program details: here is a snapshot of borrower requirements and chenoa fund program overlay criteria:
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:
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.
