Chenoa Fund is a down payment assistance program offered by CBC Mortgage Agency, which is a subsidiary of the Cedar Band Corporation. The Cedar Band Corporation is federally chartered and wholly owned by the Cedar Band of Paiutes, a constituent band of the Paiute Tribe of Utah. Loan products offered through the Chenoa Fund program are designed to increase access to homeownership for creditworthy families.
Disclaimer: Richard Ferguson is the former president of CBC Mortgage Agency. Miki Adams currently serves as the president of CBCMA.
It’s our core belief that everyone in America deserves access to affordable housing and it’s our mission to help make that happen. We provide tools that open doors to homeownership for individuals who have the income and credit history to afford and maintain a home but may lack the ability to accumulate a down payment. CBC Mortgage Agency partners with reputable mortgage lenders on a correspondent basis to provide down payment assistance for qualified homebuyers in the form of second mortgages.
Homeownership isn’t for everyone—but housing is. While we have minimum credit scores and debt-to-income ratio restrictions that may put some borrowers out of the reach of our direct assistance, we believe that by helping creditworthy families to overcome barriers we can reduce the competition for rental housing. This in turn helps to reduce its cost and increase its availability for those we cannot assist directly.
The Chenoa Fund program consists of various down payment assistance offerings. Buyers who meet our eligibility criteria may receive a second mortgage to cover their 3.5% minimum down payment requirement when purchasing a home using an FHA-insured loan or the 3% minimum down payment requirement when purchasing a conventional loan. We believe that, by helping responsible homebuyers meet that minimum investment required for a mortgage, we create healthier communities by improving the balance between homeownership and other housing types. The Chenoa Fund down payment assistance products are as follows:
Down Payment Assistance Offered in Conjunction with FHA-Insured Mortgages
DPA Edge Soft Second. With this product, the borrower receives a 30-year term, 0% rate (0% APR), no payment second mortgage. Borrowers will need to have a minimum FICO score of 600 and have a qualifying income less than or equal to 115% of the median income for the county in which the borrower will live. The loan is forgiven if the borrower meets the forgiveness conditions, which are determined by the down payment amount:
- 3.5%: Forgiven after 36 consecutive, on-time payments are made on the FHA first mortgage.
- 5%: Forgiven after 120 consecutive, on-time payments are made on the FHA first mortgage.
The loan will need to be repaid upon transfer of ownership or refinance if it is not already forgiven.
More information on DPA Edge Soft Second forgiveness can be found here.
DPA Edge Repayable Second. With this product, the borrower does not have any income restrictions. There are two options for the repayable second. The borrower can choose a 10-year repayable second at a 0% interest rate (0% APR) or a 30-year repayable second at a 5% interest rate (5.009% APR). Borrowers will need to have a minimum FICO score of 600. This assistance must be repaid in full. This product offers 3.5% and 5% down payment assistance options.
Rate Advantage. With this product, borrowers may lock their first mortgage at a market-comparable rate. Borrowers will need to have a minimum FICO score of 640, have a debt-to-income ratio of 50% or less, and have qualifying income less than or equal to 135% of the median income for the county in which the borrower will live. This product offers both 3.5% down payment assistance and 5% down payment assistance options.
Down Payment Assistance Offered in Conjunction with Conventional Mortgages
CBC Mortgage Agency offers down payment assistance to those who qualify for a 97% LTV conventional first mortgage under Fannie Mae®’s HomeReady® program1 for low-to moderate-income borrowers, with expanded eligibility for homes in low-income communities. Borrowers will need to have a minimum FICO score of 640 and meet other conventional underwriting guidelines and Chenoa Fund program overlays. The down payment assistance amount is 3.5%.
1 HomeReady® is a registered trademark of Fannie Mae.