(Mar 20, 2023)
In Collier County, the typical home was listed for $875,000 as of April 2022. That means a 20 percent down payment would be $175,000!
You're not alone if you're struggling to come up with that kind of money. Fortunately, there are programs available to help. The Chenoa Fund is one such program that could be an excellent option for you.
But precisely what is the Chenoa Fund, and how does it work? This guide will tell you everything you need to know about this down payment assistance program.
What Is the Chenoa Fund?
The Chenoa Fund Conventional Loan Program and the Chenoa Fund FHA Loan Program. The Chenoa Fund is a down payment assistance program that helps eligible borrowers with the funds needed for their down payment.
It's an excellent option for first-time homebuyers or those with limited savings. Different programs are available through the Chenoa Fund, each with its guidelines.
The Chenoa Fund offers down payment assistance as a second mortgage. The amount of money you can receive depends on your eligible program.
Understanding the Chenoa Fund Down Payment Assistance Program
The Chenoa Fund down payment assistance program is available to eligible borrowers looking to finance a home with an FHA loan. This program offers down payment assistance as a deferred second mortgage. The Chenoa Fund down payment assistance program can be used for purchase and refinance transactions.
With this program, eligible borrowers can get 3.5 percent of the loan in down payment assistance. This means that on a $200,000 loan, a borrower could receive up to $7,000 in down payment assistance. Some DPA products will allow you to get up to 5 percent.
Since the introduction of the Chenoa Fund down payment assistance program, tens of thousands of families have achieved homeownership.
Eligibility Guidelines
Before starting the application process, you must make sure you meet the Chenoa Fund eligibility guidelines. These guidelines are in place to ensure that only those truly in need of assistance can receive it. Here are some of the guidelines:
Income Limits
There are income limits for the Chenoa Fund Down Payment Assistance Program. To be eligible, your household income must not exceed 115 percent of the median income for the area.
For example, let's say you want to purchase a home in Collier County. The median household income in Collier County is $70,217. One hundred fifteen percent of that is $80,247. Your household income must be less than $80,247 to qualify for the Chenoa Fund DPA.
Credit Requirements
There is a minimum credit score requirement of 600 for the Chenoa Fund DPA for an FHA loan. However, it's important to note that this is a minimum requirement and does not guarantee approval.
It's always a good idea to check your credit score before applying for any loan, as a higher credit score will often result in a lower interest rate. You can check your credit score for free on websites like Credit Karma or Credit Sesame.
Homebuyer Education
Homebuyer education is required for all Chenoa Fund Down Payment Assistance Program borrowers. Homebuyer education is a way to prepare borrowers for the responsibilities of homeownership. It covers topics like budgeting, credit, and the home buying process.
Homebuyer education can be completed online, in person, or over the phone. There are many different homebuyer education providers, so you should have no trouble finding one that works for you.
Some Chenoa Fund lenders may require the completion of a specific homebuyer education course, so be sure to check with your lender before beginning any course.
Occupancy Requirements
There are occupancy requirements for the Chenoa Fund Down Payment Assistance Program. Borrowers must occupy the property as their primary residence within 60 days of closing.
Properties purchased as investment properties or second homes do not qualify for the Chenoa Fund Down Payment Assistance Program.
Debt-to-Income Ratio Requirements
There are debt-to-income ratio requirements for the Chenoa Fund Down Payment Assistance Program. Borrowers must have a debt-to-income ratio of 50 percent or less to be eligible.
Your debt-to-income ratio is the number of your monthly debts divided by your gross monthly income. For example, let's say your monthly debts are $1,500, and your gross monthly income is $4,000. Your debt-to-income ratio would be 37.5 percent.
Property Eligibility Requirements
There are property eligibility requirements for the Chenoa Fund Down Payment Assistance Program. To be eligible, the property must be located within Chenoa Fund's targeted areas.
The property must also be a single-family home, townhome, or condominium that meets Chenoa Fund's minimum property standards.
Loan Product Eligibility Requirements
The Chenoa Fund Down Payment Assistance Program offers loan product eligibility requirements. To be eligible, borrowers must obtain a Chenoa Fund participating lender and use an eligible Chenoa Fund loan product.
Not all lenders participate in the Chenoa Fund program, so checking with your lender before applying for a loan is essential. Additionally, not all loan products are eligible for the Chenoa Fund program. For instance, conventional loans are ineligible.
Residency Requirements
There are residency requirements for the Chenoa Fund Down Payment Assistance Program. Borrowers must be legal residents of the United States to be eligible.
Applying for Chenoa Fund DPA
To successfully apply for Chenoa Fund Down Payment Assistance, you need to be familiar with the steps in the application process. Though Chenoa Fund makes every effort to streamline this process as much as possible, there are still a few steps that you'll need to take.
Here's an overview of what you can expect:
Step 1 - Check Your Credit Score
The first step is to check your credit score and ensure it is high enough to qualify for the Chenoa Fund Down Payment Assistance Program.
As mentioned earlier, the minimum credit score required is 600. If your credit score is less than stellar, do not fret. There are many simple steps you can take to improve your credit score before you apply for Chenoa Fund DPA.
Step 2 - Find a Chenoa Fund Participating Lender
Not all lenders participate in the Chenoa Fund program, so checking with your lender before applying for a loan is essential. You can find a Chenoa Fund participating lenders list on the Chenoa Fund website.
Schedule a meeting with your loan officer to discuss Chenoa Fund Down Payment Assistance and determine if you qualify.
Step 3 - Attend a Chenoa Fund Homebuyer Education Class
Many different types of homebuyer education classes are available, both online and in-person. Choose the option that is most convenient for you.
Some Chenoa Fund lenders may require the completion of a specific homebuyer education course, so be sure to check with your lender before beginning any course.
Step 4 - Get Pre-Approved for a Mortgage
The fourth step is to get pre-approved for a mortgage. This will give you an idea of how much money you can borrow and how much your monthly payments will be.
Getting pre-approved for a Chenoa Fund participating lender is vital to be eligible for Chenoa Fund Down Payment Assistance.
Step 5 - Find an Eligible Property
Once pre-approved for a mortgage, you can start shopping for an eligible property. As mentioned earlier, the property must be located within Chenoa Fund's targeted areas and must meet Chenoa Fund's minimum property standards.
Consider working with a real estate agent familiar with Chenoa Fund's guidelines. This will save you time and hassle in the long run.
Step 6 - Make an Offer on the Property
Once you've found an eligible property, it's time to make an offer. Be sure to have your Chenoa Fund participating lender involved in this process so that they can help ensure the property is eligible for Chenoa Fund Down Payment Assistance.
Remember, your offer on the property should be contingent on Chenoa Fund's final approval.
Step 7 - Complete a Chenoa Fund Application
After accepting your offer, you'll need to complete a Chenoa Fund application. Specific paperwork will be required, such as proof of income, asset statements, etc.
Your Chenoa Fund participating lender will be able to help you with this process.
Step 8 - Attend a Chenoa Fund Loan Closing
Once your Chenoa Fund application has been approved, you'll need to attend a Chenoa Fund loan closing. This is where the final paperwork will be signed, and the down payment assistance funds will be disbursed.
Why Should You Apply for Chenoa Fund Down Payment Assistance
While many down payment assistance programs are available, Chenoa Fund is an excellent option for several reasons. Here are some of them:
No Interest Rate Charged
Most down payment assistance programs charge an interest rate on loans. This can mean paying hundreds, or even thousands, of dollars in interest over the life of the loan.
Given that you're choosing down payment assistance to save money, this doesn't make much sense. Chenoa Fund does not charge interest on the down payment assistance loan, so you can be sure you're getting the most bang for your buck.
DPA Is a Grant, Not a Loan
With Chenoa Fund Down Payment Assistance, the funds are given to you as a grant. This means you don't have to pay the money back.
This means you do not have to repay the money if you live in the home for a certain period. It also means that Chenoa Fund Down Payment Assistance won't impact your debt-to-income ratio or monthly payments.
Flexible Credit Score Requirements
As mentioned earlier, Chenoa Fund's credit score requirements are flexible. Chenoa Fund will work with you to help you get your credit score where it needs to be.
If your credit score is below 600, you may still be eligible for Chenoa Fund DPA if you take specific steps to improve your credit.
Deferred Payments
If you're worried about being able to make your monthly Chenoa Fund DPA payments, don't be.
Chenoa Fund offers deferred payments, which means you don't have to make a payment for a considerable amount of time. This can give you much-needed breathing room when you're first settling into your new home.
No Minimum Contribution Requirements
Most down payment assistance programs require you to contribute a certain amount of your money towards the down payment.
Chenoa Fund does not have this requirement. You will be eligible for the program if you meet Chenoa Fund's income requirements.
You Get Homebuyer Education
When you apply for Chenoa Fund Down Payment Assistance, you'll also get access to Chenoa Fund's Homebuyer Education program.
This program is designed to help you understand the home buying process and make smart decisions every step of the way. Given that homebuying errors are a common occurrence, this education is invaluable.
Where in Collier County Can You Enjoy an Acai Bowl?
Once you've found the home of your dreams in Collier County, Florida, with Chenoa Fund's down payment assistance, you'll want to savor all the area offers.
Among the many things that Collier County is known for is its food. In particular, the area has some of the best acai bowls around.
Here are five restaurants where you can enjoy an acai bowl and a few other menu items you can sample at each restaurant.
Gymano's Café
Located in Naples, Gymano's Café is known for its healthy and delicious food. Their acai bowl features organic acai, organic granola, bananas, blueberries, and honey. It's the perfect spot to enjoy an acai bowl and a variety of other healthy fares.
If you're looking for something a little heartier, you may want to sample their breakfast quesadilla. It comes with eggs, cheese, and your choice of bacon or sausage.
Fit Foodz Café
In Fort Myers, Fit Foodz Café is another great spot to enjoy a healthy meal. Enjoy a made-to-order acai bowl with fresh fruits, granola, and honey.
You can also add protein powder, peanut butter, or chocolate chips for an extra boost. Or try one of their signature bowls like the Fit Bowl, which comes with chicken, quinoa, avocado, black beans, and more.
Their chicken BLT wrap is also a popular menu item. It comes with grilled chicken, bacon, lettuce, tomato, and avocado mayo wrapped in a whole wheat tortilla.
The Local Market Eatery & Catering
The Local Market Eatery & Catering is located in Marco Island. This spot is perfect for those who are looking for a quick and healthy meal on the go.
The menu offers a variety of options, including sandwiches, salads, soups, and Acai bowls. The Local Market Eatery & Catering also offers catering services for events and parties.
Pinchers Crab Shack
Pinchers Crab Shack is a seafood restaurant with several locations in southwest Florida, including Naples. Head to Pinchers Crab Shack for fresh seafood dishes, including crab cakes, shrimp, and fish.
You can also order an Acai bowl for a light and healthy meal. Pinchers Crab Shack is the perfect spot for those looking for a casual dining experience.
The Dock at Crayton Cove
The Dock at Crayton Cove is a waterfront restaurant located in Naples. This spot is perfect for those looking to enjoy fresh seafood with a view. The menu features a variety of seafood items, including shrimp, fish, and oysters.
You can also order an Acai bowl to start your meal. If you're looking for a place to enjoy a leisurely meal with friends or family, The Dock at Crayton Cove is ideal.
Apply Today and Start Life in Collier County, Florida!
Owning a home in Collier County, Florida, is the perfect way to enjoy life in this beautiful part of the Sunshine State. Chenoa Fund's down payment assistance can help make your dream of homeownership a reality.
With its low down payment requirements and flexible guidelines, Chenoa Fund can make buying a home more affordable for everyone. And once you're settled into your new home, be sure to explore all the area has to offer, including its delicious food.
Start the application process today!
(Mar 20, 2023)
