The Chenoa Fund national down payment assistance program is managed by CBC Mortgage
Agency, a governmental entity. Chenoa Fund products are designed to improve the access of
creditworthy families to homeownership.
It is our fundamental belief that everyone in America deserves access to affordable housing and
our mission is to help achieve this. We provide tools that open doors to homeownership for
people who have the income and credit history to afford and maintain a home but who may
lack the ability to pay the down payment.
CBC Mortgage Agency partners with reputable mortgage lenders on a correspondent basis to
provide down payment assistance through the Chenoa Fund program to 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 restrictions that can exclude certain
borrowers from our direct assistance, we believe that by helping creditworthy families to
overcome barriers we can reduce competition for rental housing. This in turn reduces the cost
of renting and increases its availability for those we cannot directly support.
The Chenoa Fund program consists of various down payment assistance products.
Buyers who meet our eligibility criteria may receive a second mortgage of 3.5% to cover their
minimum down payment requirement when purchasing a home with an FHA loan or a FNMA
conventional loan. 5% down payment assistance is also available for FHA loans, which covers
the minimum down payment requirement and assists with closing costs.
The services are as follows:
DPA Edge Soft Second
This product has a 30-year term with a 0% interest rate (0% APR) and
has no monthly payment. Borrowers must have a minimum FICO score of 620 and have a
qualifying income equal to or below 115% of the median income of the county in which the
borrower will live. The loan may be forgiven on terms based on the down payment assistance
amount (3.5% or 5%). More information may be found here.
DPA Edge Repayable Second
With this product there are no AMI limitations. This product has
two term options: the borrower may choose a 10-year repayable second at a 0% interest rate
(0% APR) or a 30-year repayable second at a 5% interest rate (5.009% APR). The borrower will
need to have a minimum credit score of 620. This product offers 3.5% down payment
Rate Advantage Product
With this program, the borrower can lock the first mortgage at a market-comparable rate.
Borrowers must have a minimum requirement of the FICO score of 640, have a debt-to-income
ratio of 50% or less, and have a qualifying income of less than or equal to 135% of the median
income for the county in which the borrower will live. The Rate Advantage product has both
3.5% and 5% down payment assistance options.
Chenoa Fund Down Payment Assistance for Conventional Loans
CBC Mortgage Agency offers second mortgages for use in conjunction with 97% LTV
conventional mortgage financing for borrowers with low to moderate incomes, with increased
eligibility for housing in low-income communities.