Chenoa Fund is an affordable housing program administered by CBC Mortgage Agency (CBCMA), a federally chartered government entity. CBCMA specializes in providing down payment assistance (DPA) for borrowers receiving a FHA-insured first mortgage.
CBCMA has a mission to increase affordable and sustainable homeownership specifically for creditworthy, low- to moderate-income individuals. CBCMA partners with reputable mortgage lenders on a correspondent basis to provide down payment funds for qualified homebuyers in the form of second mortgages. All assistance is provided in compliance with FHA guidelines.
How do you qualify for the Chenoa Fund DPA Edge: Soft Second product?
In order to qualify for the Chenoa Fund DPA Edge: Soft Second product, you must meet program criteria, including the following:
- Minimum credit score of 620
- Debt-to-income ratio based on FICO score:
- 620–639: 45% or less
- 640–659: 50% or less
- 660+: Per AUS findings
- Qualifying income is equal to or less than 115% of the area median income (AMI) for the county in which the you will live (note: If you make more than 115% median income, ask about the Chenoa Fund DPA Edge: Repayable Second program.)
With this program, you receive a 30-year term, 0% rate, no payment second mortgage. A lien is placed on the property for the amount of the assistance.
The loan is forgiven if you meet 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 the initial 120 consecutive, on-time payments are made on the FHA first mortgage.
Income Limits
Income limits provide an overview of the qualifying income for each program offered by the Chenoa Fund. Chenoa Fund offers three second lien programs that are issued in conjunction with first mortgages that are FHA-insured or conventional loans. See “Programs” for details.
