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:

• 3.5%: Forgivable after 36 consecutive, on-time payments on the FHA first mortgage. This forgiveness period resets if the borrower makes a late payment, but the borrower has the full 30-year term to meet the forgiveness conditions. This loan may also be forgiven at the end of the 30-year term if the previous forgiveness condition has not been met.
• 5%: Forgivable after the initial 120 consecutive, on-time payments on the FHA first mortgage. This forgiveness period is terminated if the borrower has a payment that is 60+ days late, but the loan will remain with a 30-year term, 0% interest rate (0% APR), and no monthly payment.

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.

• Income limits per FNMA guidelines
• Minimum FICO score of 620 (using FNMA borrower average)
• 30-year fixed rate first mortgage
• Second lien is a 10-year fixed rate mortgage with an interest rate 2% higher than the first mortgage
• DU® only
• MI coverage per FNMA guidelines
• First-time homebuyer per FNMA guidelines
• Requires borrower to take homebuyer education class

• No income limits
• Minimum FICO score of 620 (using FNMA borrower average)
• Second lien is a 10-year fixed rate mortgage with an interest rate 2% higher than the first mortgage
• MI coverage per FNMA guidelines
• First-time homebuyer per FNMA guidelines
• Homebuyer education class per Fannie Mae guidelines
• No income restrictions

The USDA loan is a zero-down mortgage program that is meant to support homeownership in rural and semi-rural areas. USDA home loans are designed to provide “low and moderate-income households” an opportunity to own a home with 100% (zero-down) financing.

Like its definition of “rural,” what it considered moderate income is generous. You can make up to 115% of your area’s median income and still qualify. The higher your city’s typical income, the more you can make and still be eligible.

The home must be within a USDA-eligible area. (https://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do?pageAction=sfp) There are no exceptions granted.

First mortgage loans submitted to CBC Mortgage Agency must conform with USDA 3555-1 Technical handbook as well as the FHA 4000.1 Handbook and be of investment quality and saleable on the secondary market. Secondary Financing with the USDA program is not allowed.