Chenoa Fund™ is a national down payment assistance program administered by CBC Mortgage Agency, a federally chartered governmental entity. Through the Chenoa Fund™ program, CBC Mortgage Agency specializes in providing down payment assistance (DPA) for low- to moderate-income borrowers.
Chenoa Fund™ DPA for FHA loans is a flexible second mortgage used to provide down payment assistance. This product is has both forgivable and repayable loan options.
What does Chenoa Fund™ DPA for FHA Loans offer?
Using the Chenoa Fund™ DPA for FHA loans product, the borrower may receive either 3.5% or 5% down payment assistance on an FHA loan. This assistance may be applied to the down payment, closing costs, prepaid items, or any combination of the three. This assistances may be in the form of a repayable loan with a 10-year term or a forgivable loan with a 30-year term.
How does the borrower qualify for Chenoa Fund™ DPA for FHA Loans?
In order to qualify for Chenoa Fund™ DPA for FHA loans, the borrower must qualify for an FHA loan and meet Chenoa Fund’s minimal product overlays, which include a minimum credit score of 600.
With this product, the borrower may be able to lock the first mortgage at market comparable rate. In addition, while the DTI limit is only limited by AUS approval, better pricing is available for lower DTI scores and for borrowers below a 135% AMI limit.
Why was Chenoa Fund™ DPA for FHA Loans created?
While many people do manage to purchase a home by saving for a down payment over a period of years, increasing home prices and stagnant or low wages can make this quite difficult. By helping responsible homebuyers to overcome the challenge of the minimum investment required for a mortgage, CBC Mortgage Agency is helping to create healthy communities by improving the balance between homeownership and other types of housing. This way, new homeowners can start now building equity for their future, rather than potentially waiting for years to save up for a down payment while home prices become even more unaffordable.
CBC Mortgage Agency does not originate mortgage loans. This is not an offer to lend money nor a solicitation of a mortgage application by CBC Mortgage Agency.