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November 27, 2018

New Down Payment Assistance Loan - Chenoa Fund

Category: Down Payment Assistance Loan Origination

Now available, Chenoa Fund is an affordable housing program provided through an FHA approved, federally chartered government agency. This program specializes in providing down payments for borrowers receiving an FHA 1st mortgage. 100% financing is made possible by 3.5% in down payment assistance from the Chenoa Fund.

This program is available to both first-time and non-first-time homebuyers. Two products that are available through Chenoa Fund are the Edge Program and Advantage Program. Both are FHA, 30-year fixed-rate first mortgages with DPA assistance.

Edge Program

  • Minimum credit score 620, homebuyer education is required with scores of 620-639
  • At least one of the borrowers must occupy the property as their primary residence
  • DPA choices
    • 3.5% DPA as a forgivable soft second for borrowers with qualifying income equal to or less than 115% of the area median income
    • 3.5% DPA as a fully amortized repayable second mortgage with a term of 10- or 30-years for borrowers with qualifying income greater than 115% of the area median income

Advantage Program

  • Minimum credit score 640, homebuyer education is not required
  • All borrowers must occupy the property as a primary residence
  • 3.5% DPA as a fully amortized repayable second mortgage, with a term of 10 years, for borrowers with household income less than 115% of the area median income

The second mortgage down payment assistance provided will be 3.5% of the sales price or appraised value, whichever is less, rounded up to the nearest whole dollar. The Chenoa Fund program is available on purchases only, and may be layered with Community Seconds and MCC products through other agencies.

To find out more, contact one of our loan officers.