Chenoa Fund™ is a national down payment assistance program administered by CBC Mortgage Agency, a federally chartered governmental entity. Through the Chenoa Fund program, CBC Mortgage Agency specializes in providing down payment assistance (DPA) for low- to moderate-income borrowers.
Through the Chenoa Fund™ program, CBC Mortgage Agency provides a second mortgage of 3% or 5% to meet or assist with the down payment required on 90–97% LTV conventional loans. Borrowers receiving this assistance must meet the guidelines outlined for the relevant Fannie Mae™ program (HomeReady®1*, Standard Conventional [90–95% LTV], or Conventional 97).
How does the borrower qualify for Chenoa Fund™ DPA for FNMA conventional loans?
In order to qualify for Chenoa Fund™ down payment assistance for FNMA conventional loans, the borrower must qualify for a FNMA conventional loan and meet product overlays, including the following:
- Minimum credit score of 620
- Debt-to-income ratio maximum, based on FICO score:
- 620–659: 50% or less
- 660+: Per AUS findings
- First-time homeownership may be required, as determined by first loan type and LTV
- No Chenoa Fund income limits, but income limits may be set by FNMA
Some qualifications2 for Fannie Mae’s HomeReady® program:
- Home must be located in a low-income census tract, otherwise borrowers must not exceed AMI limits per FNMA guidelines
- One of the loan applicants must complete a homeowner education course
Why was the Chenoa Fund™ DPA for FNMA conventional loans created?
Homeownership isn’t for everyone—but housing is. While CBC Mortgage Agency’s minimum credit scores and debt-to-income ratio restrictions may put some borrowers out of the reach of receiving direct assistance, CBC Mortgage Agency believes that, through assisting creditworthy families to overcome down payment barriers, it can reduce the competition for rental housing, which in turn helps to reduce the cost of renting and increase its availability for those we cannot assist directly.
CBC Mortgage Agency does not originate mortgage loans. This is not an offer to lend money nor a solicitation of a mortgage application by CBC Mortgage Agency.
1 HomeReady® is a registered trademark of Fannie Mae.
2 CBC Mortgage Agency’s correspondent guidelines include additional overlays to the HomeReady® and Standard Conventional (90–95% LTV), and Conventional 97 programs.
*Neither CBC Mortgage Agency nor any of the Chenoa Fund™ products are approved by or affiliated with Fannie Mae®. It is the originating lender’s responsibility to ensure that the use of CBC Mortgage Agency second mortgages, the first mortgage, and the combination of the first and second mortgages are compliant with Fannie Mae® requirements.