Chenoa Fund: What is it and what does it offer?
Perhaps home-ownership isn’t for everyone, but we believe the benefits of the Chenoa Fund trickles into the lives of those indirectly affected. By creating homes for those qualified, the competition of rental housing decreases, resulting in reduced pricing for non-homeowners.
The Chenoa Fund was designed to assist families who are credit-worthy and able to maintain a home payment, but need assistance in making a down payment. There are many financially responsible families who desire home ownership, but struggle with the hurdle of making the down payment. The Chenoa Fund is in place to help make the dream of home ownership come to life. CBCMA partners with esteemed mortgage lenders to provide down payment assistance to qualified buyers by way of second mortgages.
The Chenoa Fund is created by the CBC Mortgage Agency, a subsidiary of the Cedar Band Corporation – a government owned and federally authorized band of the Paiute Tribe of Utah.
What programs are offered?
There are various options available to assist in home ownership. Qualifying buyers may be eligible for a second mortgage to aid in covering the 3.5% down payment minimum requirement when using a FHA-approved loan, or to cover the 3% cost of a conventional loan.
Chenoa Rate Advantage Program:
Requirements: a minimum FICO score of 640 or higher; debt to income ratio of 50% or less; an income equal to or less than 115% of the county’s median income to which the future home will belong.
-The borrower will be able to latch the first mortgage at an equivalent market rate.
Chenoa Fund Repayable Second Program:
Requirements: no income restrictions; FICO score of 620 or higher
The borrower is able to choose between two options–either a 10 year repayable second with a 0% interest rate or a 30 year second at a 5% interest rate in which the assistance will need to be paid in full.
Down Payment Assistance Offered in Conjunction with Conventional Mortgages:
Requirements: minimum FICO score of 640 or higher; there are also other options available with no income limitations.
Borrowers access second mortgages for use with LTV 97% conventional mortgage in the low and moderate income borrowing categories and increased eligibility for homes in low-income areas.
Chenoa Fund Rate Advantage Program:
Requirements: a minimum FICO score of 640 or higher; debt to income ratio of 50% or less; qualifying income less than or equivalent to 115% of the median income of the county in which the home will belong.
The borrower will be able to lock the first mortgage at a market comparable rate.
Chenoa Fund Edge Program:
Requirements: minimum FICO score of 620 or higher; qualifying income less than or equal to 115% of the median income for the county in which the home will belong.
The borrower will receive a 0% rate, no payment, 30 year term second mortgage and makes 36 payments on time to the FHA first mortgage subsequently.