Chenoa Fund
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:
- Conventional loans
- FHA insured loans
Chenoa Fund Down Payment Assistance Loans
While many people do manage to purchase a home by saving for a down payment over a period of years, increasing home prices and stagnant or low wages can make this quite difficult. By helping responsible home buyers to overcome the challenge of the minimum investment required for a mortgage, CBCMA is helping to create healthy communities by improving the balance between home ownership and other types of housing. This way, new homeowners can start now building equity for their future, rather than potentially waiting for years to save a down payment while home prices may become even more unaffordable.
Down payment assistance may be available to eligible buyers through participating lenders. Program availability, first-time buyer rules, repayment obligations and closing costs depend on the current offering; confirm terms before applying.
FHA Loans
Some assistance programs use a second mortgage, which may be repayable or forgivable only after specific conditions are met. Ask a participating lender whether any Chenoa Fund option is currently available, and request its current rate, APR, fees, repayment and forgiveness terms.
Conventional Loans
CBCMA offers down payment assistance to those who qualify for a 97% LTV conventional first mortgage under Fannie Mae®’s HomeReady® program1 for low to moderate income borrowers, with expanded eligibility for homes in low-income communities. If you do not fit the HomeReady® criteria but may not have the resources for a larger down payment on a home purchase, you may still qualify for the standard conventional 97% loan-to-value program and receive assistance from CBC Mortgage Agency for the down payment and some closing costs.
There are no household income limits under a conventional standard 97% LTV program. You will need to meet minimum credit score of 640 and all other guidelines for the conventional standard 97% LTV or HomeReady® programs. CBCMA’s correspondent guidelines may include additional overlays to the HomeReady® program. 2 *
*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.
CBCMA Does Not Originate Mortgage Loans. This is not an offer to lend money nor a solicitation of a mortgage application by CBCMA.
1 HomeReady® is a registered trademark of Fannie Mae.
2 CBCMA’s correspondent guidelines include additional overlays to the HomeReady® program.
Requesting Information
If you would like more information about this program, please contact our program development team.
Phone: 833-426-8256
Email: lowrates@iamtblo.com
CBCMA Does Not Originate Mortgage Loans. This is not an offer to lend money nor a solicitation of a mortgage application by CBCMA.
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