Chenoa Fund is operated by the CBC Mortgage Agency, which is a subsidiary of Cedar Band Corp. Cedar Band Corporation is federally chartered and wholly owned by the Cedar Band of Paiutes, a constituent band of the Paiute Tribe of Utah. Programs 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. CBCMA partners with reputable mortgage lenders on a correspondent basis to provide down payment assistance for qualified homebuyers in the form of second mortgages.
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 its cost and increase its availability for those we cannot assist directly.
The program consists of various down payment offerings. Buyers who meet our eligibility criteria may receive a second mortgage to cover their 3.5% minimum down payment requirement when purchasing a home using an FHA-insured loan or the 3% minimum down payment required on a conventional loan. We believe that by helping responsible home buyers meet that minimum investment required for a mortgage, we create healthier communities by improving the balance between homeownership and other housing types. Services are as follows:
Down Payment Assistance Offered in Conjunction with FHA-Insured Mortgages
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 less than or equal to 115% of the median income for the county in which the borrower will live. The loan is forgiven if the borrower meets the forgiveness conditions, which are determined by the down payment amount—3.5% or 5%.
- 3.5%: Forgiven after 36 consecutive, on-time payments are made on the FHA first mortgage.
- 5%: Forgiven after 120 consecutive, on-time payments are made on the FHA first mortgage.
Chenoa Fund Repayable Second Program. With this program, the borrower does not have any income restrictions. There are two options for the 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. This assistance must be repaid in full. This program offers 3.5% assistance.
Chenoa Fund Rate Advantage Program. With this program, borrowers may lock their first mortgage at a 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 qualifying income less than or equal to 135% of the median income for the county in which the borrower will live. This program offers both 3.5% down payment assistance and 5% down payment assistance.
Down Payment Assistance Offered in Conjunction with Conventional Mortgages
CBCMA offers second mortgages for use in conjunction with 97% LTV conventional mortgage financing for low-to moderate-income borrowers, with expanded eligibility for homes in low-income communities. Additional options exist where there are no income limits. Borrowers will need to meet a minimum FICO score of 640 and other conventional underwriting guidelines. The down payment assistance amount is 3.5%.