CBC Mortgage Chenoa Fund - FHA Forgivable DPA

Maximum Amount

5% of Purchase Price

Benefits

  • Assistance up to 5% of the sales price or appraised value, whichever is lower.
  • 3.5% soft second has no payment, zero-interest, forgivable after 36 consecutive on-time payments on the FHA first mortgage.
  • 5% soft second has no payment, zero-interest, forgivable after 120 payments on the FHA first mortgage (as long as never 60+ days late).
  • Alternatively, the mortgagee may begin amortization up to ten (10) days prior to the disbursement date and provide a per diem interest credit. Any per diem interest credit may not be used to meet the Borrower’s MRI. Per diem interest must be computed using a factor of 1/365th of the annual rate.
  • Manual underwriting is permitted.
  • High Priced Mortgage Loan (HPML) transactions are allowed as long as CFPB & TR requirements are met.

Participating Lenders

Find An Approved Lender: https://chenoafund.org/homebuyer/homebuyer-how-toan-approved-lender/

Approved Education Providers

Required for borrowers with credit scores between 600–639. This course must be take prior to closing.

  • Any HUD-approved counseling course is approved by CBCMA; CBCMA no longer requires that this course be completed through Money Management International (MMI). However, CBCMA will continue to pay the course fee for those borrowers who choose to take the MMI course. (Borrowers with a FICO less than 620 are required to take the MMI course.) https://www.borrowersuccess.org/prepurchase
  • Please note: only the borrowers with scores less than 640 are required to take a counseling course. Any borrower on your transaction with scores equal to or greater than 640 is not required to take a course.

Program Provider Contact

Information Team 866-563-3507
info@chenoafund.org

Find Out More