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Chenoa Fund Down Payment Assistance Program in Bay County, Florida

Bay County is home to incredible beaches, and most notably, it is gaining popularity as a business destination and has the potential to become an economic hub. So, this is the place to be if you're looking for a place with beautiful weather, good schools, and exciting outdoor activities. But if buying a home in Bay County is beyond your financial limit, the Chenoa Fund DPA may bail you out.

Getting the down payment for a new home is the most significant concern for most people considering a home loan. It often represents the most significant payment during this process, and it may be challenging to find the funds for it.

Luckily, the Chenoa Fund addresses this concern by covering the down payment and closing costs. It reduces the stress of saving up for a down payment which can take a couple of years.

This program offers up to 3.5% of your home buying price, which covers the down payment required by an FHA loan. But Chenoa Fund assistance is only available to specific homeowners who meet the requirements.

Read on to learn about these requirements, how Chenoa works with FHA loans and the best spots for an Acai bowl in Bay County.

What is the Chenoa Fund?

By providing down payment assistance (DPA), the Chenoa Fund aims to provide sustainable and affordable homeownership to creditworthy, middle-to-low-income families and individuals. Those who can't afford a down payment and closing costs can benefit from the DPA. This program is available to homebuyers, except in New York.

The DPA amounts to 3.5% of your home buying price, and you can apply as a forgivable loan or a repayable second mortgage. With a forgivable loan, the CBC Mortgage Agency may forgive your mortgage if you pay on time for 36 or 120 consecutive months on your primary mortgage loan, depending on the down payment size.

To qualify for this assistance on FHA loans, you must meet income requirements and have a minimum FICO credit score of 600. You can use the Chenoa Fund with FHA or other conventional mortgages by working with approved lenders.

These lenders also have an underwriting authority and will approve your loan based on your credit score, income, and home purchase price.

As a borrower, you must comply with acceptable loan performance levels and take the required steps to avoid putting the FHA insurance pool at risk.

The Chenoa Fund Programs

The Chenoa Fund DPA has two programs that require at least a credit score of 600 to qualify. The DPA is 3.5% or 5% of the home's purchase price or appraisal value, and you may use it for a down payment, closing costs, or both.

Here are the available products offered by the Chenoa Fund:

Forgivable Program

The forgivable program offers a 30-year term with 0% interest, and you don't need a second mortgage payment each month. The DPA amount determines forgiveness, and here are the two types of forgivable loans:

  • 3.5 percent - The DPA is forgivable after 36 continuous, on-time payments on the first FHA mortgage. But the forgiveness period starts over if you make late payments. You still have 30 years to reach the forgiveness requirements.

  • Five percent - The loan is forgivable if you make the first 120 successive, timely payments on the first FHA mortgage. This forgiveness period is canceled if you have missed a payment for 60 days, but the loan remains at a 30-year term with no interest rates and zero monthly fees.

You must meet the following eligibility criteria to qualify for the DPA forgivable program:

  • A FICO score of at least 640.

  • Mortgage Insurance.

  • The qualifying income is 100% of your county's area median income.

  • You don't require a minimum borrower fund.

If you sell your house or refinance your loan, you must repay the loan in full if not forgiven. The CBC mortgage agency may forgive the loan upon completing the 30-year term for either forgivable program.

Even if you don't meet the previous forgiveness conditions, including making late payments on the first FHA mortgage.

Repayable Second

The repayable program has a 10-year term with a 2% interest rate, more than the FHA first mortgage rate. You will also make monthly payments on the second mortgage and must satisfy specific requirements. These program criteria include:

  • A FICO score of at least 620.

  • Fulfill FHA requirements.

  • Borrower's income of more than 115% of your county's area median income.

  • You don't need any income requirements..

The repayable second has two options - a 30-year repayment option at 5% interest or a 10-year repayment option at 0% interest.

You will make payments for both the first and second mortgages. But you can pay off the second mortgage anytime without penalty, provided you are within the repayment period.

Chenoa Down Payment Assistance

The Chenoa Fund Program assists borrowers who lack funds for a down payment. The program offers a loan of up to 3.5% of the cost of the home, and the loan is either a repayable second mortgage or a forgivable loan.

This down payment assistance uses the same basic principles as the FHA program and adds a second mortgage to cover the total of 3.5 percent.

Chenoa Fund helps you obtain complete mortgage funding, 96.5% from the FHA loan program, with the remaining 3.5 % from Chenoa Fund. This program covers the down payment, prepaid items, closing costs, or a combination of all three.

The DPA is based on your income level and requires a few minimum thresholds. You can also combine this DPA with seller concessions allowed by FHA to help cover the closing costs.

House model with coin stack for down payment

How Chenoa Funds Work with FHA Loans

For FHA loans, the 3.5% down payment assistance from Chenoa Funds applies to the down payment, not the closing costs. Chenoa Funds work with fixed-rate FHA first mortgages on single-family properties, covering the down payment. You only need to pay out of pocket for the closing costs.

To apply for down payment assistance from the Chenoa Fund with an FHA-backed mortgage, you must have the following requirements:

  • An income-to-debt ratio of not more than 45%.

  • Minimum borrower funds are not required.

  • You require mortgage insurance.

  • The FICO score must be at least 620.

  • In addition, you must qualify for an FHA loan.

You take out a 30-year fixed-rate FHA mortgage and secure a repayable second mortgage, covering the down payment and giving you the entire financing.

The FHA guidelines govern the first FHA mortgage, while the second mortgage depends on your income and your county's Area Median Income (AMI) standards.

The Chenoa Fund offers three FHA loan programs:

Chenoa Fund Rate Advantage program

This best-selling Chenoa product allows you to lock in your first mortgage at a competitive market rate.

The rate advantage program offers 3.5% and 5% down payment assistance. With this program, you repay the down payment assistance under a 10-year term at an 8% interest rate.

To qualify, your FICO must be 640 or higher and have a debt-to-income ratio of 50 or less. Your eligible household income should be 135% or less of the area median income in your county.

Chenoa Fund DPA Edge Soft Second Product

This is a soft second mortgage, popular among low-income borrowers because the down payment is forgivable, so you don't have to pay the loan back. But the loan is forgiven if you pay the first mortgage on time for 36 consecutive months.

Otherwise, the 36-month period starts over when you make late payments, which gives you a second chance to forgive the loan.

To be approved, you must have a credit score of at least 620, a DTI of not more than 45%, and a qualifying income of 115% or less of your county's area median income.

For this program, you repay the DPA over ten years with no monthly payment and a 0% interest rate on the second mortgage.

Chenoa Fund Payable Second Product

The payable second product has no income limits to become eligible for the DPA.

You must have a FICO score of at least 620 and a DTI of 45% or less, although that may increase if you have a higher FICO score. The loan has two options to choose from a 30-year loan at 5% interest or ten year-term at 0% interest.

Chenoa Fund DPA and Conventional Loans

The Chenoa Fund is combined with other conventional loans as a 3.5% of the cost of the home and comes as a second mortgage.

Unlike the FHA loan, you can use the loan assistance also to cover the closing costs, provided the down payment is covered.

The following are the eligibility criteria for the DPA for conventional loans:

  • A minimum credit score of 640.

  • A DTI ratio of 50% or less.

  • The term of the second mortgage must be ten years, and the interest rate should not be 2% higher than the first mortgage.

The Chenoa Funds DPA is offered to borrowers with low to medium income through Fannie Mae products. You may combine the HomeReady or 97% loan-to-value program with Chenoa Fund to pay the closing costs and the down payment.

Additional Benefits of Chenoa Fund

Every loan program has additional benefits, and Chenoa Fund is no exception. This program has several advantages that set it apart from others.

Apart from the down payment assistance, you will receive pre- and post-purchase counseling to ensure the successful program.

The program supports you through the first year of homeownership through frequent monthly check-ins to address any questions or if you need assistance.

Chenoa also counsels borrowers with a credit score of less than 640 before purchase to prepare them for homeownership challenges. If you have a credit score lower than 620, you must attend a separate education course through the CBC Mortgage Agency before closing.

As part of the learning process, you will receive training on preparing a budget, saving for home renovations, and other necessary steps to help you become a responsible homeowner.

The best part is the Chenoa Fund is independent of the government. So, you directly deal with Chenoa regarding any issues. However, the CBC Mortgage Agency is answerable to FHA, which has stringent guidelines.

CBC Mortgage Agency is responsible for carefully reviewing each loan and taking all necessary steps to ensure the borrower meets guidelines.

How to Apply for Chenoa Fund

The Chenoa Fund program has different loan options, and you can apply for it as a second mortgage on FHA home loans. You can apply for the Chenoa fund financing through an approved lender.

Here are the simple steps for applying for the fund.

  • Step I - Fill out a contact form to get in touch with a Chenoa Fund representative who will explain to you in detail about the Chenoa Fund. Your information is private and only shared with selected lenders following your approval.

  • Step II - After submitting the form, the Chenoa Fund representative will contact you, take you through how the program works, and answer all your questions. The representative will also refer an approved lender near you and guide you through your goal of homeownership.

  • Step III - Contact the referred lender by Chenoa Fund and discuss your goals of buying a house, and they will offer you the best financing option depending on your qualifications.

5 Best Places to Get Acai Bowl in Bay County, Florida

Known for its famous attractions, white sandy beaches, and lush green waters, Bay County is an ideal destination for a health enthusiast. Bay county has a variety of juice bars and smoothie spots to choose from.

Give your day an energy boost with an Acai bowl, a creamy base of blended fresh fruits served with various toppings. From drizzles of honey to coconut shavings, this superfood has endless options.

Here are five spots around Bay County to try this bowl of wellness.

FINNS Barista Bar and Snack Shack

This spot is vegan-friendly and specializes in organic and hand-crafted baked sweets, coffee drinks, and smoothie bowls.

Enjoy an acai bowl loaded with seeds, organic nuts, fresh granola, and ripe fruits to top up your bowl. You can take your acai bowl to the next level by adding the toppings of your choice.

Tropical Smoothie Cafe

Famous for its nutrient-dense Detox Island Green Smoothie, this cafe isn't a typical smoothie bar. It offers a variety of protein and other nutritious options, such as gluten-free and vegetarian options.

You have different Acai bowl options, and you won't miss out on your favorite Acai bowl from the variety of fruits, seeds, and nuts they offer.

Playa Bowls

This is one of the best places for pitaya, coconut, and acai bowls in Bay County. The owners added their twist to these nutritious fruit delights and introduced them along with other juices and smoothies.

You have many acai bowl menu options, and you should try some of their popular acai specialties, such as the Pura Vida, Electric Mermaid, or Nutella Acai.

Raw & Juicy

If you're looking for a solid acai bowl, vegan meal options, and freshly squeezed juices, Raw & Juicy is the perfect place. In addition to sandwiches, salads, and soups, the acai bowl is the most popular menu option.

The acai bowl contains fresh fruits, flaxseeds, maca powder, and nut milk. You can top it up with a blend of fruits, honey, and shredded coconut.

Lotus Cafe & Juice Bar at Zen Garden

The Lotus Cafe serves a natural and organic food selection and has a beautiful garden to enjoy your meal.

Apart from other food specialties, they do organic pitaya and acai mixed with apple juice, soymilk, blueberries, and bananas. And organic granola, fresh fruit, honey, and coconut to up these healthy bowls.

Bottom Line - Consider Chenoa Fund Today

Bay County offers excellent opportunities to purchase a home. And that isn't so just because this county is beautiful and peaceful, offering the amenities anyone could ask for. But it also caters to health enthusiasts who would love to enjoy healthy treats.

If you want to own a home in Bay County, the Chenoa Fund offers you a unique chance to receive assistance through three different DPA programs. You don't need to exhaust your savings to purchase a home, and you can deal directly with Chenoa on issues after the deal closes.

Contact an approved lender to find out if you are eligible and receive professional advice on becoming a homeowner in Bay County, Florida.

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