All policy changes and updates are referenced below in the appropriate section of the Correspondent Lending Guide. These policy changes apply to everyone using the Chenoa Fund down payment assistance program and are effective beginning November 13, 2023, unless otherwise noted. This announcement, and previous announcements are available on the Announcements page of our website.
Announcement: Interest Rate Reduction
Effective Monday, November 13, 2023, we are reducing the interest on all repayable second mortgages. For all loans locked on or after Monday, November 13, 2023, the interest rate on repayable second loans will have a rate matching the interest rate of the FHA first mortgage loan.
5.2 | FHA Offerings
5.2.1 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 to borrowers with an annual income of 135% or less of the AMI for the county or MSA in which they are purchasing a home. (An option is available to higher income borrowers that has no income limits.) 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 matching the interest rate on the first mortgage.