Chenoa 3.5% Forgivable DPA
Best For: First Time Homebuyers, Zero Down
Chenoa Fund DPA: 3.5% assistance for FHA loans, min credit score 600.
Program Description
The Chenoa Fund Down Payment Assistance (DPA) program provides 3.5% or 5% assistance for Federal Housing Administration (FHA) loans. This program does not impose income limits, making it accessible to a wider range of borrowers. Applicants need a minimum credit score of 600 to qualify. The assistance is repayable over a 10-year term, offering an affordable solution to homebuyers needing financial aid for their down payment.
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Chenoa 3.5% Forgivable DPA
Min. Credit Score
N/A
Min. Down Payment
0%
Max Loan Amount
$776,550
Qualification variables shown here are for 1-Unit Primary Residences, and loan amount ranges vary based on US County. Register Now to see if this loan program is a good fit for you, find your county limits, and find more options for purchasing a home.
Program Benefits
Benefit type: Up to 3.00% of 1st Loan Amount
Type: Deferred Payment Standard 2nd Mortgage Program - Forgivable
Repayable second requires a 10-year term with a note rate 2% above the first mortgage note rate
First Mortgage Program Option
This program can be used in tandem with the following first mortgage programs in order to help fulfill down payment requirements, pay closing costs, or provide other benefits. Learn all about how grants, bonds & 2nd mortgages work here.
Pros & Cons
- Flexible aid: Offers 3.5% assistance.
- Allows up to 55% DTI (Debt-to-Income) with credit scores above 600
- No first time homebuyer requirement
- Repayable aid: Not a grant, but a loan.
- FHA specific: Only for FHA loans.
- Credit barrier: 600 score may still exclude some.
Program Availability
Chenoa 3.5% Forgivable DPAs are available in all 50 states, Washington D.C., Puerto Rico, and the U.S. Virgin Islands.
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“The very popular Chenoa Down Payment Assistance Program seeks to eliminate eliminate the hurdle of upfront costs; offering a pathway to homeownership by providing the funds needed to move forward."
Occupancy & Property Types
Qualification factors for this program can vary based on how you intend to occupy the property and what type of property you are purchasing. By registering for a free account , you can check program limits for all property and occupancy types.
Occupancy Types
Available Property Types for Primary Residence
Income & Purchase Price Limits
Your Debt-to-Income Ratio (DTI), as well as purchase price and income limits, are important factors when qualifying for a home loan program. By registering for a free account , you can find the exact program limits for this program and others in your area and for your unique scenario.
Debt-to-Income Limit
55.00%
Purchase Price Limit
No Limits
Income Limit
No Limits
Qualification variables shown here are for 1-Unit Primary Residences, and loan limit ranges vary based on US County. Amounts may be rounded. Exact amounts can be accessed by registering for a free account.
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Key Features
- Down payment and closing cost assistance up to 3.5% of first loan amount
- Credit scores as low as 600.
- Available in all of the US.
Additional Conditions
- Buyers must meet program guidelines, complete homebuyer education courses, occupy the property as a primary residence, and not exceed the income limits.
Other Limitations
In some circumstances, there are specific requirements you must meet or homebuyer education courses you must attend in order to be eligible for the loan program.
No other program limitations
A Homebuyer Education Class may be required for this loan program.
Class Name: HUD Approved Housing Class
Based on credit score: 600-619: Required. Must be through Money Management International. (No extra cost to borrower) 620-639: Required. Must be through any HUD-approved education course. 640+: No overlay
Mortgage Insurance & Fees
Most mortgage programs require mortgage insurance when you are financing more than 80% of the purchase price or appraised value. Some programs may also have an associated funding fee, paid at the time of closing, or an annual fee. Learn all about the different fees here.
No Mortgage Insurance
This program does not require Private Mortgage Insurance (PMI).
Type: No Funding Fee
This program does not have a funding fee.
Type: No Annual Fee
This program does not have an annual fee.
Estimated Closing Costs: 2% 1.5%
These amounts are just an estimate. Your closing costs include things like loan origination fees, discount points, appraisal fees, title insurance, taxes, deed recording fees, and other charges.
Similar Loan Programs
If you think this home loan program may be a good fit for you, you may also want to check out the following programs that share many similarities with the current program.
Related Resources
2023 Credit Score Guide and Tips for Improvement
Many borrowers often misunderstand what all goes into calculating a consumer’s credit score, focusing on the negatives such as delinquent payments and collection accounts. Let’s dive in and look at factors that impact your FICO credit score, how lenders factor your credit score into your mortgage rate, and ways to improve your credit score before you submit your mortgage application.
Read More
2023 Down Payment Assistance Guide
Unless you're related to a dragon or leprechaun with a hoard of gold stashed away somewhere, chances are you are like one of the other 87% of homebuyers who need to finance their home purchase.
Read MoreVisit our Mortgage Education Center for more resources.
* Some loan programs may not be offered by all featured lenders of ReviewMyMortgage.com and qualification guidelines may vary between them. Our team makes their best effort to keep loan program information up to date. Loan programs may change without warning. ReviewMyMortgage.com does not guarantee or offer any loan products. ReviewMyMortgage.com is strictly an educational resource hub for consumers
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