Providing Down Payments on FHA and Conventional Loans

Chenoa Fund

Chenoa Fund is an affordable housing program provided by CBC Mortgage Agency (CBCMA), a federally chartered governmental entity. CBCMA specializes in providing financing for loans under FHA and conventional guidelines.

 

CBCMA has a mission to increase affordable and sustainable homeownership, specifically for creditworthy, low- and moderate-income individuals. CBCMA partners with reputable mortgage lenders on a correspondent basis to provide loans for qualified home buyers. CBCMA has several program options to choose from that include down payment assistance in the form of second mortgages on:

  1. Conventional loans
  2. FHA insured loans

Chenoa Fund Down Payment Assistance Loans

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 home buyers to overcome the challenge of the minimum investment required for a mortgage, CBCMA is helping to create healthy communities by improving the balance between home ownership and other types of housing. This way, new homeowners can start now building equity for their future, rather than waiting for years to save a down payment while home prices continue to increase.

 

CBCMA provides the down payment to assist a buyer with a home purchase. There are no first-time borrower requirements. The following are the primary programs offered by CBCMA.

 

FHA Loans

Chenoa Fund Edge program. With this program, the borrower receives a 30-year term, 0% rate, no payment, second mortgage. Borrowers will need to meet the minimum FICO score of 620 and have a qualifying income equal or less than 115% of the median income for the county in which the borrower will live. The loan is forgiven as soon as the borrower makes 36 consecutive on-time payments on the FHA first mortgage.

 

Chenoa Fund Edge Repayable Second program. With this program, the borrower does not have any income restrictions. There are two options for a repayable second. The borrower can choose a 10-year repayable second at 0% interest rate or a 30-year repayable second at 5% interest rate. Borrowers will need to meet the minimum FICO score of 620.

 

Chenoa Fund Rate Advantage program. With this program, the borrower is able to lock their first mortgage at market comparable rate. Borrowers will need to meet the minimum FICO score requirement of 640, have a debt to income ratio of 50% or less, and have a qualifying income equal or less than 115% of the median income for the county in which the borrower will live.

 

Conventional Loans

CBCMA offers a down payment to borrowers 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 who do not fit the HomeReady® criteria but may not have the resources for a larger down payment on a home purchase, may still qualify for a standard conventional 97% loan-to-value program and receive assistance from CBC Mortgage Agency for the down payment and some closing costs.

 

There are no income limits under a conventional standard 97% LTV program. Borrowers will need to meet minimum FICO score of 640 and any other guidelines for the conventional standard 97% LTV or HomeReady® programs. CBCMA’s correspondent guidelines include additional overlays to the HomeReady® program. 2

*Neither the Chenoa fund, CBCMA nor any of their products are approved by or affiliated with Fannie Mae. It is the originating lender’s responsibility to ensure that the use of CBCMA second mortgages, the CBCMA first mortgage, and the combination of the CBCMA first and second mortgages are compliant with Fannie Mae requirements.

 

1 HomeReady® is a registered trademark of Fannie Mae.
2 CBCMA’s correspondent guidelines include additional overlays to the HomeReady® program.

 

CBCMA Does Not Originate Mortgage Loans. This is not an offer to lend money nor a solicitation of a mortgage application by CBCMA.

 

Requesting Information

If you would like more information about this program, please contact our program development team.

Phone: 866-563-3507

Email: info@chenoafund.org

CBCMA Does Not Originate Mortgage Loans. This is not an offer to lend money nor a solicitation of a mortgage application by CBCMA.