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The Chenoa Fund is an affordable housing program administered by CBC Mortgage Agency (CBCMA), a federally chartered governmental entity. CBCMA specializes in providing down payment assistance financing 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:
UPDATE: Conventional loans: Chenoa Fund will temporarily suspend its conventional DPA programs due to Fannie Mae's policy regarding loans in forbearance.
FHA insured loans
Chenoa Fund provides the down payment to assist you with a home purchase. There are no first-time borrower requirements. The following are the primary programs offered by CBCMA.
Chenoa Fund DPA Edge: Soft Second product. With this program, you receive a 30-year term, 0% interest rate, no monthly payment, second mortgage. You will need to meet the minimum credit score of 620 and have a qualifying income equal or less than 115% of the median income for the county in which the you will live. The loan is forgiven when you make 36 consecutive on-time payments on the first mortgage.
Chenoa Fund Edge Repayable Second product. With this program, there are no income limitations. There are two options for a repayable second. You can choose a 10-year repayable second at 0% interest rate or a 30-year repayable second at 5% interest rate. You will need to meet the minimum credit score of 620.
Chenoa Fund Rate Advantage program. With this program, you are able to lock their first mortgage at market comparable rate. You will need to meet the minimum credit score of 640, have a debt to income ratio of 50% or less, and have a qualifying household income less than or equal to 115% of the median income for the county in which you will live.
*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.