Unlock Homeownership with the Chenoa Fund FHA Down Payment Assistance Program

Purchasing a home can often be daunting, especially for first-time buyers who may struggle to save enough for a down payment. The Chenoa Fund, an FHA-approved down payment assistance program, offers a valuable solution, making homeownership accessible to more people. Here’s what you need to know about this opportunity.

What is the Chenoa Fund?

The Chenoa Fund is a national down payment assistance program that partners with FHA lenders to help borrowers who meet FHA guidelines but may not have the required down payment. The program offers assistance in the form of a second mortgage, which can cover up to 3.5% of the home's purchase price—effectively covering the entire FHA-required down payment.

Who is Eligible?

To qualify for the Chenoa Fund, borrowers must meet FHA's basic eligibility criteria, including:

• Credit Score: A minimum credit score of 600 is required.

• Income: Borrower’s income must fall within the program's limits, which are generally based on area median income.

• Loan Type: The assistance is available for FHA loans only.

• Homebuyer Education: Completion of a homebuyer education course may be required.

Types of Assistance Offered

The Chenoa Fund offers two types of assistance:

1. Repayable Second Mortgage: This option allows borrowers to receive down payment assistance in the form of a second mortgage with a fixed interest rate. The term can be up to 10 years, and monthly payments are required.

2. Forgivable Second Mortgage: For borrowers with a slightly higher credit score (typically 620 and above), the Chenoa Fund may offer a forgivable loan. If the borrower makes on-time payments on their FHA loan for 36 months, the second mortgage is forgiven.

Benefits of the Chenoa Fund

• Increased Accessibility: By providing down payment assistance, the Chenoa Fund removes one of the most significant barriers to homeownership.

• Flexibility: With options for both repayable and forgivable loans, the program caters to different financial situations.

• Immediate Equity: Since the assistance can cover the entire down payment, homeowners can start building equity from day one.

How to Apply

To apply for the Chenoa Fund, borrowers need to work with an FHA-approved lender that offers the program. The lender will guide the borrower through the FHA loan process and the steps necessary to secure the down payment assistance.

Get Started on Your Homeownership Journey

The Chenoa Fund FHA Down Payment Assistance Program is a powerful tool for aspiring homeowners who need help crossing the initial financial hurdle. If you’re ready to take the next step towards owning your home, contact us today at 602-628-1231 or email info@allapprovedhere.com for more information and to find out if you qualify.