Thanks to the Chenoa Fund, you can still own a home in Indian River County. This down payment assistance aims to help Americans from low to moderate-income households by taking care of the down payment. This DAP works well with other home loans, and you can receive up to 3.5% of your home's purchase price.
But before you contact a Chenoa-approved lender, you must ensure that you meet requirements such as FICO, qualifying income, and the debt-to-income ratio.
Here's all you need to know about the Chenoa Fund, its different programs, and how it works with an FHA loan. You'll also discover the best places to get an acai bowl in Indian River County.
What is Chenoa Fund
The Chenoa Fund Program focuses on borrowers with low to moderate incomes and good credit but lack funds to pay down mortgage payments. The down payment assistance works by combining an FHA mortgage or conventional loans as a second mortgage payment for the 3.5% down payment, which means you may receive 100% financing.
Depending on your income, you can choose from three Chenoa Fund options; DPA Edge Repayable Second, Edge Soft Second, and the Rate Advantage. Suppose your income does not exceed 115% of the median income in your area; you will be eligible for the Edge Soft Second Product. Or the Rate Advantage program with an income of 135% or less of the area median income.
As with any loan option, there are specific guidelines to qualify for the Chenoa Fund. You need a credit score of not less than 620, a maximum DTI of 50%, and you must work with a Chenoa Fund-approved lender. You must follow all the additional requirements when combining it with an FHA loan.
The Chenoa Fund Programs
Recent lending restrictions have meant that home loans continue to be in high demand for people with high credit scores and low debt loads.
But most of them cannot afford to put aside enough funds for a down payment. The Chenoa Fund seeks to address this problem through their affordable housing programs:
DPA Edge Soft Second
The DPA edge soft second is forgivable, and you don't have to pay the loan back, provided you make timely payments for 36 consecutive months. This product has no monthly fees and has a 30-year term with 0% interest. In the case of a 3.5% or a 5% forgivable loan, the amount of the DPA determines the forgiveness of the loan.
To qualify for this product, you must have a credit score of at least 620, a DTI of less than 45%, and your qualifying income must be not more than 115% of the median income in your county.
This program provides both the 3.5% and 5% down payment assistance plans. With the rate advantage, you can secure the first mortgage at a market-competitive rate.
You must meet the minimum criteria of a credit score of 640 or more, DTI of not more than 50%, and a qualifying income of less than 135% of your county's median income.
DPA Edge Repayable Second
This product offers a 3.5% down payment assistance, and the borrower must have a minimum credit score of 620 to qualify.
This product has no area median income limitations and has two-term options. You may choose between a 10-year repayable second at a 0% interest rate or a 30-year repayable second at a 5% interest rate.
Using Chenoa Fund with FHA Loans
Chenoa Fund provides down payment assistance combined with first mortgages insured by the Federal Housing Administration. With this program, you must meet specific requirements before you may receive a second mortgage to cover the down payment on an FHA first mortgage.
For all Chenoa Fund FHA products, you must have a credit score of at least 620 and a DTI of less than 45%. This program offers forgivable and repayable second options, and the conditions of down payment assistance depend on your qualifying income and the Area Median Income (AMI) guidelines set by HUD.
With the repayable second loan, you can choose a term of 10 years with an interest rate that is 2% higher than the first mortgage interest rate. The other option is a second loan that's repayable over 30 years at a 5% interest rate.
As part of this loan, you must pay back the first mortgage, but you can pay the second mortgage anytime during the loan term without penalties.
The forgivable loan is payable over 30 years with no interest, and you will not have to make a second mortgage payment every month. Depending on the amount of the down payment assistance, forgiveness is determined as follows:
3.5% - The DPA is forgivable after 36 continuous, on-time payments on the first FHA mortgage. But the forgiveness period will start over if you fail to make payments on time. In any case, you still have 30 years to reach the forgiveness requirements.
- 5% - This DPA is forgivable after 120 consecutive, on-time payments on your first FHA loan. If you miss payments for more than 60 days, you lose this forgiveness period, but the loan remains a 30-year mortgage with no interest rates or monthly payments.
Most importantly, despite your prior late payment history or not meeting the previous forgivable requirements, both forgivable loans can be forgiven upon completion of the 30-year term. You must repay the loan when you refinance or transfer ownership if the loan has not yet been forgiven.
The Chenoa Fund is also available through Fannie Mae products for borrowers with low to medium incomes. Fannie Mae's guidelines govern the underwriting and closing of these loans.
It is possible to combine Chenoa Fund with 97% loan-to-value or HomeReady programs to cover closing costs and down payments.
Additional Benefits of Chenoa Fund
Saving up enough money for a down payment is one of the biggest obstacles to homeownership. Increasing unemployment and constantly changing economic conditions make many homebuyers use their savings to purchase their homes.
But Chenoa Fund helps you overcome these hurdles and offer the following additional benefits:
The primary benefit of the Chenoa Fund DPA is its flexibility for buyers, and it comes with reasonable guidelines and competitive interest rates.
This assistance offers a second mortgage at zero interest for 30 years. You can choose from the repayable second mortgage or forgivable to pay the down payment.
Higher Down Payment Assistance
Many people find it challenging to meet the down payment requirements for most home loans. Even though the FHA accepts gift funds to cover a 3.5% down payment, most low- and moderate-income families cannot afford it.
Chenoa Fund offers families down payment assistance of up to 5% of the home buying price, easing the burden on most homebuyers.
Exceptional Customer Service
The CBC Mortgage Agency ensures its borrowers become successful long-term homeowners and qualify for a mortgage.
The representative guides you through the home-buying process and is committed to helping you succeed. They answer all your questions on Chenoa Fund and refer you to the right lender.
Provides Post-purchase Counseling to New Homeowners
The CBC Mortgage Agency provides extra support to home buyers before and after purchasing a home. You will receive support and counseling during the first 18 months after buying your home to assist you in overcoming any challenges that may arise during your first home purchase.
What's more, you receive financial advice tailored to your specific situation from a nonprofit housing counselor approved by the HUD. This advice helps you pay your mortgage on time and learn how to budget and save money for home renovations and other projects that will help you remain a responsible homeowner.
Provides Opportunities for Underserved Communities
The Chenoa Fund offers opportunities for minority communities by assisting them to become homeowners. It is common for first-time buyers to save up for a down payment for some time, but the home prices are increasing, and wages are stagnant or low.
Therefore, minority communities cannot afford to buy a home and enjoy its economic benefits.
Chenoa Fund is Available Nationwide
Chenoa Fund offers nationwide down payment assistance except in New York state. The program aims to reduce the cost of housing, especially for low- and moderate-income homebuyers and first-time homebuyers.
But this DPA isn't just for these groups. It is open to any applicant in the United States who meets the minimum requirements.
A Guide to Applying for a Chenoa Loan
For a first-time buyer, purchasing a home can be complex and daunting without the proper guidance. Here's how to apply for Chenoa Fund and start your homeownership journey.
You'll have an easier time since you'll better understand what to expect, and your loan provider will advise you.
Step I - Research
You must answer several questions on your way to becoming a homeowner. Start by identifying what you want to accomplish and write them down.
You will need to know the available lenders, loan options, and how much you need to borrow. Taking small, manageable steps will make you feel more prepared and confident.
Step II - Qualifications and Preapproval
Once you research, settle on an approved mortgage lender who will assess your financial situation and pull your credit report.
After that, they will advise you on the best option for you when taking out a Chenoa Fund. Once you have determined your eligibility and interest rate, you can determine how much you can borrow.
Step III - Finding a Home
It is common for some homebuyers to have a specific home in mind even before they begin researching mortgages. In contrast, others do not even start looking for a home until they have the preapproval from a lender. Whatever your position, buying a house requires finding it, making an offer, and having the offer accepted.
Making a list of the things you need to consider when purchasing a home helps you make an informed decision. In this case, the quoted estimate by your lender, local property taxes, neighborhood density, your preferred location, and availability of schools all contribute to determining what you consider a dream house.
It is important to remember that it may not always be possible to put in an offer on a home before finding a lender. Some sellers might not be willing to wait until a lender approves you, especially if they have other potential buyers. If you intend to apply for down payment assistance, ensure your lender approves it before making an offer.
Step IV - Home Inspection
A home inspection is the best way to assess a property before buying the house; However, the house may appear like the perfect home from the outside, and doing a walk-through allows you to notice any potential issues, such as safety hazards or defects not evident at first glance.
Once satisfied that the house is in good condition, you can commit to starting the buying process.
Step V - Closing
Having selected and applied for a loan with a mortgage lender, Chenoa will approve your down payment assistance if you meet the requirements. After which, you can make an offer on the house, have it accepted, and ensure that you have the necessary funds to purchase the property. As soon as you close the home, all that's left is for you to transfer the funds.
In the months following the purchase of your home, you'll start making monthly payments on the down payment assistance. You become an official homeowner after transferring the funds, signing some paperwork, and receiving the keys to the house. It feels great to become a homeowner after all your hard work.
5 Best Places to Get Acai Bowl in Indian River County, Florida
Also known as the treasure coast, the Indian River County boasts serene beaches and famous attractions. It's perfect for health-conscious people, with healthy juices and smoothie bars dotting every corner of the county.
You will also enjoy the Acai bowl, which has become a sensation on the Indian River. Check out these places for the best acai bowls.
Sunset Island - There is no better place in town for a quick and healthy bite than Sunset Island. They serve delicious acai bowls loaded with fresh fruits and different toppings. Their menu options are endless, and the best part is you can make your acai bowl from various blends, fruits, granola, and multiple drizzles.
Palato Cafe - This is a beautiful little cafe specializing in healthy and freshly prepared meals. The Palato Cafe lives up to its healthy and natural concept with its meals, juices, bowls, and smoothies. They serve acai bowls, a must-try because of the perfect combination of textures, flavors, and fresh ingredients. They offer four acai bowl options which come in a generous serving.
La Tabla Food and Juicery - This cafe is a little gem with a relaxed vibe, serving continental meals, including coffee, juices, and acai bowls. They make an organic Acai bowl from bananas, blueberries, and plain yogurt topped with organic granola, almonds, chia, and pumpkin seeds. There is no added sugar, only fruit sugar, and local honey.
The Juice Bar - You can expect a great vibe with their freshly made bowls, smoothies, and juices filled with superfoods and natural ingredients that nourish your body. Smooth and nutritious, the acai bowl contains acai, banana, strawberry, avocado, blueberries, and juiced apple. The Juice Bar tops the bowl with different fruits, granola, hemp seeds, almond butter, and local honey.
- Chelsea's Gourmet - Famous for its organic juices, Chelsea's Gourmet fresh fruits are sourced from local farmers to make their acai bowls. One of their most popular acai bowls features bananas, acai, blueberry, coconut water, and honey. You can customize your acai bowl with different fruits and toppings such as granola, strawberries, peanut butter, and chia seeds.
The Bottom Line - Take Advantage of Chenoa Fund Today
Homeownership can be expensive for many buyers, but the Chenoa Fund provides flexible and affordable down payment assistance to buy your home in Indian River County. You no longer have to give up your dream of becoming a homeowner just because you cannot satisfy a down payment requirement.
The Chenoa fund makes homeownership possible by providing down payment assistance. Get in touch with an approved lender today to find out what options are available and how you can achieve your homeownership dream.