Ok. The odds of buying a home in this region may be pretty low, especially if your income is less than ideal. We understand that and would like to help you live your dream by introducing you to a down payment assistance program, Chenoa Fund. Are you interested?
Let's dive in.
Introduction to Chenoa Fund DPA
CBC Mortgage Agency, formed by Cedar Band Corporation, introduced the Chenoa Fund, a down payment assistance (DPA) program available everywhere in America except in New York.
CBC Mortgage Agency provides 100% financing for mortgages or loans insured or backed by FHA (Federal Housing Administration). Its primary purpose is to promote sustainable and affordable homeownership in the Land of Opportunity, the United States of America.
The CBC Mortgage Agency's solutions are generally geared toward low- and moderate-income potential homebuyers with decent credit.
CBC Mortgage Agency has been a godsend for many Americans since around 2016 and has assisted tens of thousands of homebuyers each year. It is a lifesaver in a country where challenges such as poor income and generational debt make it tough for many non-homeowners to afford homes and raise enough to pay down payments.
Remember that most US lenders require borrowers to put some money down on a home. For example, the minimum down payment for an FHA-backed loan is 3.5%.
As a result, people looking for mortgages with FHA insurance can use the Chenoa Fund Down Payment Assistance program to help them with their down payment and tackle one of the biggest challenges associated with the home-buying process.
Available Chenoa Fund DPA Products
The Chenoa Fund Down Payment Assistance program has the following products:
The Chenoa Fund Rate Advantage program is best suited for prospective homebuyers that want more down payment rate options. Participants in Rate Advantage have two options for down payments- 3.5% and 5%.
Like other Chenoa Fund initiatives, Rate Advantage has some eligibility standards. These include:
With the abovementioned requirements, you can apply for a Chenoa Rate Advantage loan and enjoy juicy rates.
Soft Second Product
The Chenoa Fund DPA Edge program is a soft second product, as the title implies.
A soft second is essentially a subordinate loan product that aids homeowners in paying closing expenses and covering the down payment. You may consider it a second lien or second mortgage that you can take out and use to make the necessary down payment on a house.
30-year, zero-interest loans are available through the Chenoa Edge DPA program. That being said, second payments are not required by Chenoa Fund. That means that the lien may be done away with. However, to enjoy that, you, the borrower, must demonstrate through 36 consecutive on-time payments that you have been responsibly managing the initial FHA loan.
Here's a question most borrowers often ask themselves - can a second lien be forgiven even with late payments? Simply put, it depends; some rules dictate how that should happen. If you have 30 days or more late payments, you must start from scratch and make 36 timely, consecutive payments to qualify for this benefit.
In addition, if you refinance the first FHA mortgage loan before making the required 36 consecutive payments, you will lose access to this feature, which means you will have to pay off the second lien in full.
Moreover, this product is primarily availed to individuals with a credit score of 620 or higher.
Repayable Second Program
The Repayable Second Program is similar to other Chenoa Fund products - it assists prospective homeowners in overcoming the barriers associated with most mortgages' investment requirements. It also forms vibrant communities by balancing homeownership with other options, like renting.
The Repayable Second Program has what most homebuyers consider the most favorable income requirements of any Chenoa Fund product. Responsible home buyers who choose this option are often not needed to adhere to any household income restrictions.
Furthermore, Repayable Second offers two choices. Responsible homebuyers can choose the program's 10-year second mortgage and pay zero interest. However, if your situation calls for a longer term, a 30-year loan is available but requires you to pay 5% interest.
Because you need to repay the Chenoa Fund Repayable Second loans, as a participant, you must make two payments. The first is for the initial FHA mortgage, and the other is for the second lien. However, you can pay off the loan anytime during your mortgage term without worrying about penalties.
To be qualified for the Repayable Second Program, you must meet the following requirements:
Reasons to Choose Chenoa Fund DPA Products
Chenoa Fund has been a favorite for many homebuyers for a while now. Most people love this program for various reasons. We have outlined some below to help you gauge whether the platform is a good fit for you.
The Program Offers Counselling Services
First, to demonstrate Chenoa Fund's concern for its clients, the program provides pre-purchase and post-purchase counseling to qualified participants.
Borrowers who require additional assistance before leaping may use Chenoa Fund's pre-purchase counseling package. And not to forget that all participants receive post-purchase counseling from the program.
Chenoa Fund Has Outstanding Customer Support Services
Chenoa Fund boasts competent personnel and solid support staff. Borrowers can contact them with queries or issues and receive invaluable guidance, recommendations, and clarifications.
Remember, taking out a mortgage and purchasing your first home has challenges and hurdles galore. You need all the professional help you can get to make a seamless transition and make decisions you won't regret in the future.
Qualification Requirements for Chenoa Fund in Gilchrist County, Florida
Here's a breakdown of Chenoa Fund qualification requirements for applicants in Gilchrist County:
Income levels shouldn't deter you from seeking down payment assistance from the Chenoa Fund DPA program. Why?
Generally, your income can't automatically disqualify you from the Chenoa Fund DPA program. However, the platform's AMI superimpositions significantly impact the rates and pricing you'll receive.
With that in mind, the income requirements stipulated by Chenoa Fund vary based on the product category.
Let's start with The Chenoa Fund Edge Soft Second product. This option is available to Gilchrist County individuals with qualified incomes that do not exceed 115% of the region's AMI. Given that the median family income in Gilchrist County was $47,381 in 2020, eligible participants for this program must have an average income of $54,488 or less.
In addition, for the greatest deals in Gilchrist County, you must have a qualifying income higher than 115% of the AMI or less than/equal to 135% of the county's AMI if you prefer the Rate Advantage Program or Repayable Second loan, respectively.
Note that the AMI we referenced above was provided by the US Census Bureau for the years 2016-2020. For up-to-date figures, go to Chenoa Fund's Income (AMI) Limits page and use the primary method indicated to compute your area's median income.
Minimum Credit Score
Knowing your credit score is crucial when it comes to Chenoa Fund DPA. So, if you don't already know yours, find out as soon as possible. You must also note that having a credit report doesn't mean you'll find your score. As a result, even if you already have the former, you will certainly need to request the latter.
You can obtain your credit score from online credit scoring websites available today. An alternative to that option is scouring applicable loan and credit card statements. Most banks, loan institutions, and credit companies now include credit scores on customer statements, so that should be relatively easy.
And having said that, the Chenoa Fund DPA program is only available to people with a minimum credit score of 600. If yours is lower, work on it and raise your chances of acquiring a loan.
Type of Residency
Mortgage experts often reference three types of residences. These are primary, secondary, and investment property.
A primary or principal residence is a property that you, the owner, utilize most often than not. On the other hand, a secondary residence is a home you only use during certain seasons, like summer or holidays. Finally, investment property can be a residence you rent out to earn money.
With the above in mind, the Chenoa Fund down payment assistance program is designed for borrowers looking to purchase primary residences.
This program can assist eligible participants in purchasing a variety of principal residencies, including SFHs (single-family homes), townhouses, manufactured homes, condos, and modular homes, as long as they intend to live in them for a considerable part of the year, if not the entire year.
As mentioned earlier, Chenoa Fund DPA program's sole objective is to make homeownership more than a pipe dream for responsible first-time homebuyers and low-and-moderate-income persons.
According to HUD (Housing Unit Department), first-time homebuyers can be:
Individuals who did not own a primary property three years before their current home-buying endeavors.
Single parents who formerly shared property ownership rights with their ex-spouses.
Owners who have solely owned primary dwellings that have not been permanently attached to a permanent foundation.
- Individuals who possessed houses that did not meet local, state, or model building regulations and codes.
Additionally, low to moderate income can be defined differently based on area cost indexes. However, it often refers to income levels around 80% of a region's AMI.
However, Chenoa Fund DPA loans are not exclusively available to low to middle-income individuals and first-time homeowners. Anyone who meets all qualification requirements dictated by Chenoa Fund can apply for down payment assistance through the platform's DPA program.
How to Apply for Chenoa Down Assistance
Now that you are acquainted with the Chenoa Fund DPA program, you can apply for down payment assistance. How?
Step 1 - Look for a Correspondent Lender
All financial institutions do not support the Chenoa Fund DPA Program. You must find a correspondent lender to obtain finances from Chenoa Fund DPA.
First, go to the Chenoa Fund website and fill in the contact form posted for borrowers seeking approved lenders. It needs you to enter information such as your full name, city, email, street address, state, and phone number. Then, choose a convenient callback time and click the 'Request Callback' option.
After submitting the required information, a Chenoa Fund representative will contact you by phone or email. The call won't have anything to do with sales. It'll primarily be consultation, so there's no reason to avoid it. The agent will point you toward approved lenders in your area and offer any other essential information and guidance.
Step 2 - Follow Lender Guidelines
Once you've identified a suitable Chenoa Fund-approved lender, discuss your objectives with them, complete their application procedure, and submit all relevant paperwork and documentation.
You can ask the lender any questions and seek clarification for any blurry areas you may encounter on your journey.
Loan Programs Supported by Chenoa Fund
The Chenoa Fund DPA program is available only to homebuyers with FHA-backed loans. If you have an FHA loan, you can get 3.5% or 5% down payment help via the platform.
The good news is that because FHA requirements require participants to put down at least 3.5% of the purchase price, Chenoa Fund can ensure you have enough to pay the entire down payment when you want to take out an FHA-insured mortgage.
The Chenoa Fund Program assisted borrowers with FHA and conventional Fannie Mae loans with down payments in the past, but things are different now.
Chenoa Fund temporarily halted traditional down payment assistance programs earlier in 2020. The program has yet to indicate when the adjournment will end; therefore, it remains in effect.
Are You a Fan of Acai Bowls? Where to Get Them in Gilchrist County, Florida
When you move to Gilchrist County and crave a nourishing acai bowl, check out the following places that are within easy reach:
Nekter Juice Bar
The Nekter Juice Bar's menu is populated by numerous mouth-watering treats, including acai bowls. You can pop into this establishment and order an acai superfood bowl with homemade cashew milk, banana, kale, spinach, strawberry, blueberries, and pineapple.
And whenever you feel particularly aggressive, you can also try other items on Nekter Juice Bar's menu, including their regular and functional bowls.
Vale Food Co.
One feature that separates Vale Food Co. from its competitors is this establishment allows customers to build their bowls. Plus, you can choose any size you prefer, be it small, regular, or super bowl.
That being said, Vale Food Co. makes mean acai bowls. Their delicacies are simply berry superfruit smoothies with three toppings and a chocolate berry, alluring flavor.
Vibez Juice Bar
If you want to stuff your face with acai bowls made from wholesome ingredients, containing zero artificial fillers and ingredients, Vibez Juice Bar is the place to be.
Vibez Juice Bar prepares some of the best dishes in Gainesville. Besides acai bowls, the establishment is also a favorite for juice and smoothie fanatics.
GainzVille Hub isn't your average juice bar, oh no. It's an ultramodern establishment that serves a diverse clientele, ranging from post-workout fitness devotees craving protein shakes to happy-go-lucky individuals on the hunt for waffles and the likes.
And the acai bowls prepared here are to die for! Seriously, check them out.
What came to mind when we mentioned Planet Smoothie? An establishment filled with racks of fresh, cold drinks sounds about right. Well, Planet Smoothie is that and more.
This spot offers other treats besides smoothies. These include more than five different dragon and acai bowls. Sound amazing, right? Visit the shop and check out their menu for more goodies.
We've had a grand time introducing you to Chenoa Fund DPA and everything it's associated with. Hopefully, you'll use the information in this piece to make the best decisions, gauge your eligibility, and ensure your transition to homeownership is a breeze.
Let's not forget the acai bowls, hey? Check out the places we've recommended for yummy, healthy treats in Gilchrist County.