All policy changes and updates are referenced below in the appropriate section of the Correspondent Lending Guide. These policy changes apply to everyone using the Chenoa Fund down payment assistance program and are effective beginning 3/11/2024, unless otherwise noted.
Announcement: Chenoa Fund Down Payment Assistance Update(s):
The forgiveness period on the 5% DPA has been changed to match the forgiveness period on the 3.5% DPA. For both products, the forgiveness period is thirty-six (36) consecutive months of on-time first lien payments.
Announcement: Subordination (s):
We have changed the subordination period of the 5% DPA to match the 3.5% DPA. Forgivable second liens do not qualify for subordination prior to the initial thirty-six (36) payments being made on the first mortgage. This applies for both the forgivable 3.5% DPA and 5% DPA.
The following sections in the Correspondent Lending Guide are affected by this change:
4.2.1 Chenoa Fund Down Payment Assistance
10.2.2 Forgivable Second Liens
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