Chenoa Fund

You cannot apply directly to the Chenoa Fund or CBC Mortgage Agency; you must work with an approved correspondent lender. These are mortgage lenders, banks, or brokers authorized to originate loans using Chenoa Fund guidelines. The lender will handle the application, collect documentation such as income verification and credit reports. We are approved mortgage lenders for Chenoa Fund loan programs.

Refinancing can be restrictive with a Chenoa Fund second mortgage. CBC Mortgage Agency generally does not allow subordination (moving the second loan behind a new first loan) during the first 36 months. If you wish to refinance the first mortgage within that window, you must pay off the down payment assistance loan in full. For forgivable loans, refinancing the first mortgage permanently triggers a loss of forgivable status, requiring repayment unless the loan has already been forgiven. After 36 months, subordination may be considered for repayable loans if the borrower has a perfect payment history.

Whether you make monthly payments depends on the specific Chenoa Fund product selected. If you choose a repayable second mortgage, you will make monthly payments over a 10-year term, with an interest rate typically set 1% higher than your first mortgage rate. Conversely, if you qualify for and select the forgivable option, the loan generally has a 30-year term with a 0% interest rate and requires no monthly payments. The balance on the forgivable loan remains a silent second lien until it is either forgiven after meeting the 36-month payment requirement or repaid upon sale or refinance.

Currently, you cannot pair Chenoa Fund down payment assistance with a USDA loan. While CBC Mortgage Agency does offer a USDA Rural Development 30-year loan product for eligible rural properties, their guidelines explicitly state that secondary financing (down payment assistance) is not permitted with this specific program at this time. The USDA loan itself is a zero-down program, which eliminates the need for a down payment, though buyers generally still need funds for closing costs. Consequently, Chenoa Fund down payment assistance is exclusively designed to be paired with FHA-insured first mortgages.

Eligible properties primarily include single-family residences, townhomes, and condominiums. The program follows FHA 203(b) guidelines, allowing for 1-2 unit properties, provided one of the units is occupied by the borrower as their primary residence. Manufactured homes are also eligible, but they must meet strict criteria: they typically must be double-wide or larger (single-wide units are ineligible), built on or after June 15, 1976, and permanently affixed to land classified as real estate. Investment properties, cooperatives, and 3-4 unit properties are strictly prohibited under the program guidelines.

Yes, the Chenoa Fund offers specific second mortgage options that are forgivable. The 3.5% down payment assistance is typically forgiven after the borrower makes 36 consecutive, on-time payments on the FHA first mortgage. There is also a 5% assistance option that is forgivable after 36 consecutive on-time payments. Crucially, if a borrower makes a payment that is 30 days or more late, the forgiveness period generally resets. If the forgiveness conditions are not met, or if the home is sold or refinanced before the forgiveness period ends, the loan balance must be repaid.

Income limits depend entirely on which Chenoa Fund product you choose. For the standard repayable down payment assistance options, there are no borrower income limits, allowing higher-income earners to utilize the program if they lack liquid savings. However, for the forgivable loan options or the “Rate Advantage” product, borrowers must meet specific income thresholds. These limits are typically capped at 115% or 135% of the Area Median Income (AMI) for the county where the property is located. Borrowers should consult with a lender to determine which product fits their income profile.

The minimum credit score requirement for the Chenoa Fund is generally 600. All borrowers on the loan application must have at least one valid credit score. While the baseline is 600, specific program options may have higher requirements; for example, the “Rate Advantage” product often requires a minimum score of 640. Additionally, borrowers with credit scores between 600 and 639 are required to complete a homeownership education course prior to closing. Borrowers must also meet debt-to-income (DTI) requirements, which are determined by the Automated Underwriting System findings.

No, you do not need to be a first-time homebuyer to qualify for the Chenoa Fund. While many down payment assistance programs are restricted to first-time buyers, the Chenoa Fund is open to both first-time and repeat buyers, provided they meet the program’s credit and income requirements. However, the program is generally intended for the purchase of a primary residence, and borrowers usually cannot own other property at the time of purchase unless they provide a sufficient Letter of Explanation regarding their motivation for moving and retaining the current property.

The Chenoa Fund is a national down payment assistance program administered by CBC Mortgage Agency (CBCMA), a federally chartered governmental entity under the Cedar Band of Paiutes. Its primary mission is to increase affordable and sustainable homeownership for creditworthy individuals who may lack the necessary savings for a down payment. The program provides secondary financing—typically a second mortgage—that pairs with an FHA-insured first mortgage to cover 3.5% or 5% of the home’s purchase price or appraised value. This assistance is available in every U.S. state except New York, making it one of the most widely accessible DPA programs.