The Chenoa Fund is managed by the CBC Mortgage Agency, a Cedar Band Corp subsidiary. Federally chartered and wholly owned by the federal government, Cedar Band Corporation is the Paiutes Cedar Band, a constituent band of the Utah Paiute Tribe.
Chenoa Fund Programs 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 home ownership for people who have the income and credit history to afford and maintain a home, but who may lack the ability to pay down.
CBCMA partners with reputable mortgage lenders to provide down payment assistance through the Chenoa Fund Program to qualified homebuyers in the form of second mortgages on a corresponding basis. Home ownership isn’t for everyone— but housing is. While we have minimum credit scores and income-ratio restrictions that can exclude certain borrowers from our direct assistance, we believe that by helping credit - worthy families to overcome barriers, we can reduce competition for " rental " housing. This in turn reduces its costs and increases its availability for those we can not directly support.
The program consists of various down payment offerings.
Buyers who meet our eligibility criteria may receive a second mortgage to cover their minimum down payment requirement of 3.5 percent when purchasing a home with an FHA loan or a minimum down payment of 3 percent with a conventional loan. We believe that by helping responsible homeowners meet the minimum investment required for a mortgage, we are creating healthier communities by improving the balance between homeownership and other types of housing.
The services are as follows:
The borrower receives a 30-year term of 0 percent, no payment, second mortgage with this program. Borrowers must meet the 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 lives. The loan shall be forgiven as soon as the borrower makes 36 on-time payments on the first mortgage of the FHA.
With this program, the borrower has no income constraints. There are two options for the second repayable. The borrower may choose a repayable 10-year second at a rate of 0 percent or a repayable 30-year second at a rate of 5 percent. Borrowers will have to achieve the FICO minimum score of 620. This assistance must be fully repaid.
With this program, the borrower can lock its first mortgage at a comparable market rate. Borrowers must meet the minimum requirement of the FICO score of 640, have a debt - to - income ratio of 50 percent or less and have a qualifying income of less than or equal to 115 percent of the median income for the county in which the borrower lives.
CBCMA offers second mortgages for use in conjunction with 97 percent LTV conventional mortgage financing for borrowers with low to moderate income, with increased eligibility for housing in low - income communities.
Additional options exist where income limits are lacking. Borrowers must comply with a minimum FICO score of 640 and other conventional guidelines for subscription.