The Chenoa Fund Down Payment Assistance Program is designed to facilitate homeownership by providing financial assistance for down payments, primarily for those who might not have the savings for a traditional down payment. Here are key details about the program based on available information:

Program Overview:

• Purpose: To make homeownership more accessible by helping with down payment costs.
• Administered by: CBC Mortgage Agency (CBCMA), which is a federally chartered government agency.
• Eligibility:
  • Typically requires a minimum credit score, with some programs accepting scores as low as 600 for FHA loans and 620 for conventional loans.
  • No income limits for certain programs, but income restrictions may apply based on specific options like the DPA Edge program.
  • Borrowers must qualify for an FHA loan since Chenoa Fund assistance is often paired with FHA mortgages.

Assistance Details:

• Amount: Offers up to 3.5% or 5% of the home’s purchase price or appraised value for down payment assistance.
• Types of Assistance:
  • Repayable: Comes with a 10-year term, where the interest rate might be higher than the first mortgage by 2%.
  • Forgivable: A 30-year term at 0% interest, with the possibility of forgiveness after making 36 consecutive, on-time payments on the first mortgage.

Program Options:

• Chenoa Fund DPA Edge: Can be either repayable or forgivable, with different terms based on the borrower’s income relative to the area median income (AMI).
• Rate Advantage: Offers competitive rates but may have its own set of qualifications.
• Conventional Loan Options: Although temporarily paused for conventional loans, typically it would provide 3.5% assistance.

Geographical Availability:

• Available nationwide, with the exception of New York.

How It Works:

• The assistance is often provided in the form of a second mortgage, which can be either repayable or forgivable.
• Borrowers must work with approved lenders who have been trained to offer the Chenoa Fund program.
• The program aims to cover the down payment required for an FHA loan, making it possible for buyers to purchase a home with little to no money out of pocket.

Additional Information:

• There’s no requirement to be a first-time homebuyer.
• The program does not run out of funds, as CBC Mortgage Agency ensures continuous funding.
• Homebuyer education might be required for some borrowers, particularly those with lower credit scores.