Effective Tuesday, April 1st we are increasing the interest rate on all repayable second mortgages. For all loans locked on or after Tuesday, April 1st 2025, the interest rate on the repayable second loans will have a rate of 1% higher than the interest rate on the first mortgage.
This announcement affects the following sections in the Seller Guide:
4.2.1 Chenoa Fund Down Payment Assistance
This second mortgage product is paired with an FHA first mortgage. The product offers 3.5% or 5% down payment assistance. All FHA guidelines must be met, as well as Chenoa Fund overlays. This product can be repayable or forgivable. Repayable down payment second loans have a 10-year term with an interest rate 1% higher than the interest rate on the first mortgage.
The forgivable option has a 30-year term, no interest rate, and no monthly payments.
All policy changes and updates are referenced below in the appropriate section of the Correspondent Seller Guide. These policy changes apply to everyone using the Chenoa Fund down payment assistance program and are effective beginning 04/01/2025, unless otherwise noted.
