The Chenoa Fund downpayment assistance loan program offers 100% affordable financing for buyers who can meet basic minimum credit requirements and lack sufficient funds for a down payment.
The Chenoa Fund homebuyer assistance program offers two unique down payment assistance programs, the Chenoa Fund FHA Advantage and Chenoa Fund Conventional Advantage, to meet the needs of today’s homebuyers.
Both the Chenoa Fund FHA and Conventional Advantage assistance programs provide between 3% to 5% down payment assistance in the form of a 2nd mortgage to satisfies the minimum down payment required by FHA or Conventional financing.
There are four features of the Chenoa Fund mortgage assistance program that make it different than other homebuyer assistance programs:
- Do not have to be a first time homebuyer (FHA option only)
- No income limit
- More buying power – debt-to-income ratio’s up to 50% for the Conventional Advantage and up to 55% for the FHA Advantage
- High balance loan amounts allowed (FHA option only)
The Chenoa Fund down payment assistance program is administered by the federally chartered CBC Mortgage Agency (CBCMA), a tribal government Housing Finance Agency of the Ceder Band of Paiutes, with the goal of increasing home ownership by providing affordable 100% financing to responsible and credit worthy individuals.
Chenoa Borrower Qualifications and Guidelines
|FHA Advantage||Conventional Advantage|
|Income Limit||No Limit||No limit|
|2nd Mtg||Fully amortized payment||Fully amortized payment|
|1st Loan Amount||High Balance||High Balance|
|Amount of Assistance||3.5% of sales price||3% or 5% of sales price|
|Approval Process||DU / Automated||DU / Automated|
|DTI Ratio Limit||50% w/ 640-679 credit |
55% w/ 680+ credit
|50% w/ 660+ credit|
|Credit Score||Minimum 640||Minimum 640|
|1st Time Homebuyer||Not required. Cannot own other property at time of closing.||One person must be a FTHB'r|
|Sales Price Limit||No||No|
|Property Type||SFR & Condo (No Manufactured)||SFR & Condo (No Manufactured)|
|Min Borrower Investment||$0||$0|
|Homebuyer Ed Class||No||Yes|
|Non-Occ Co-borrower/signer||Yes||Yes w/ 95% max LTV and 43% DTI|
|Occupancy||Primary residence only||Primary residence only|
|Gift Funds Allowed||Yes||Yes|
Chenoa Fund Income Limit
The Chenoa Fund Advantage downpayment assistance program has no income limit!
Alternative Options to the Chenoa Fund Downpayment Assistance Program
People always ask me “what is THE BEST down payment assistance or mortgage program to purchase a home with?” Well, I hate to sound so vague, but the best program really depends on your individual scenario, needs and the downpayment assistance programs you qualify for.
The Chenoa Fund assistance program is not the be-all end-all in terms of homebuyer assistance programs.
There are other down payment assistance programs that have lower interest rates (and higher), some with lower fees (and higher), some that allow for lower credit scores, some that are grants without a 3 year requirement and other programs that provide more assistance (up to $100,000) but have equity sharing and deed restrictions(yuck).
Chenoa Fund Frequently Asked Questions:
Q. Which lenders offer the Chenoa Fund assistance program?
Answer: Not many lenders or brokers are approved for this program, and those who are, even fewer have a experience with down payment assistance programs or actually present his option to their buyers. Premiere Capital Mortgage (Me) is an approved mortgage broker that offer the Chenoa Fund down payment assistance program.
Q. Will I have to repay the assistance funds?
Answer: Yes, the assistance provided will have to be repaid back over time.
Q. Is Chenoa legal and compliant?
Answer: Absolutely 100% yes! The Chenoa Fund assistance program has been vetted by FHA, Fannie Mae, Freddie Mac, and HUD for compliance and proven to be an effective solution to enable homeownership to eligible homebuyers for many years.
Q. How soon can I refinance after buying using the Chenoa Assistance program?
Answer: FHA allows for a streamline refinance that doesn’t require an appraisal, in as little as 6 months. It’s also possible to refinance into a Conventional loan in as little as 6 months, assuming the home appraises high enough.
Be Informed & Make the Best Decision
I strongly encourage buyers to explore all loan and homebuyer assistance options before they start their home search. Unfortunately, most lenders refuse to promote, educate or disclose the many different options buyers have available to them.
In fact, you would be surprised at how many lenders or loan officers intentionally go out of their way to withhold, conceal, or flat out lie to prevent prospective buyers from learning about other loan options.
If you want to discuss your home purchase (or refinance) options, whether it be about down payment assistance programs or just to ask a 2nd opinion if you’ve already spoken to another lender….contact me.