Chenoa Fund™ is a national down payment assistance program operated by CBC Mortgage Agency, a subsidiary of Cedar Band Corp. Chenoa Fund™ products are designed to increase access to homeownership for creditworthy families.
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 in the form of second mortgages to qualified homebuyers.
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 assisting creditworthy families to overcome barriers, we can reduce the competition for rental housing. This in turn helps to reduce rental costs and increases rental availability for those we cannot assist directly.
The Chenoa Fund™ program consists of various down payment assistance offerings in the form of second mortgages. Buyers who meet our eligibility criteria may receive a second mortgage to cover the 3.5% down payment requirement for FHA-insured loans. We believe that helping responsible homebuyers meet that minimum investment required for a mortgage creates healthier communities by improving the balance between homeownership and other housing types. Services are as follows:
Chenoa Fund™ DPA for FHA Insured Loans
Buyers will need a minimum credit score of 600 to qualify for Chenoa Fund™ assistance for an FHA loan. Down payment assistance is 3.5% or 5% of the lower of the purchase price of the home or its appraised value, which may be applied toward the down payment or closing costs, or both. Borrowers have the choice between repayable assistance and forgivable assistance:
- Repayable: 10-year term with an interest rate 2% higher than the mortgage interest rate. This product is fully amortized with a fixed rate.
- Forgivable: 30-year term with a 0% interest rate (0% APR) and no monthly payments. This product is forgiven (i.e. turned into a grant) at the borrower’s request when the forgiveness conditions are met, which are determined by the DPA amount:
- 3.5%: Forgivable after 36 consecutive, on-time payments on the mortgage.
- 5%: Forgivable after the initial 120 payments on the first mortgage.