But if you're like many people looking to start fresh in a new city, you might wonder how you'll get enough money for a down payment on your first home. Well, we've good news - Chenoa Fund Down Payment Assistance Program can help!
That's right—if you're looking for a way to claim your space in this laid-back area quickly and easily, Chenoa funds can be a huge help. This guide explains how this down payment assistance works.
What Is Chenoa Fund Down Payment Assistance Program
The Chenoa Fund's Down Payment Assistance is a government-backed program that offers up to 3.5% of the purchase price as a down payment assistance loan. Still, you qualify based on your income and type of assistance—which is limited by Madison County Median Income levels.
The program is provided through CBC Mortgage Agency and seeks to assist low-income and first-time homebuyers in promoting sustainable homeownership. You do not need to be a first-time homebuyer but must meet specific requirements.
How it Works
You apply for the down payment assistance loan through your lender.
You close on your home using a conventional mortgage or an FHA loan from a participating lender.
The Chenoa Fund pays off your existing mortgage and gives you an additional low-interest loan to cover your down payment and closing costs.
- You pay back both loans over time with monthly payments based on what you can afford.
How Much Is Down Payment Assistance Available?
The Chenoa Fund is a down payment assistance program that offers up to 3.5% of a home buyer's total price tag in assistance.
This aid comes from a forgivable or repayable second mortgage loan product, meaning that the borrower fulfills certain obligations.
Homeowners can use money from the Chenoa Fund in any combination with other federal loans and bank-issued mortgages.
How Chenoa Fund Assistance Works with FHA Loans
Imagine this - you're about to buy your first home. You've researched, found the perfect place, and have your finances in order. You need one thing - a low-down payment mortgage loan.
You find an FHA lender who can help you with that — except there's no way you can come up with even 3% down! Well, what if I told you there was an affordable solution?
The Chenoa Fund assists homebuyers who need assistance making their down payment on an FHA loan. Our program covers up to 3.5% of your purchase price, which means we can entirely reduce or eliminate your required minimum down payment — meaning zero dollars out of pocket!
However, the Chenoa fund DPA comes under several programs, which we will discuss below:
Chenoa Fund Rate Advantage Program
The Chenoa Fund's Rate Advantage program allows borrowers to lock in a competitive rate on their primary mortgage and receive 3.5% down-payment assistance loans for new construction purchases and home improvement projects.
If you're interested in this program, you must have:
Chenoa Fund DPA Edge
The Chenoa Fund DPA Edge is a 'Soft Second' mortgage option that improves with time. For borrowers with lower incomes who have trouble saving up for their down payment in one lump sum, this option might be best suited because the funds used for a down payment are often forgiven — meaning you typically don't have to pay that portion of your loan back.
This mortgage has an escalator clause that forgives the debt after 36 months. However, you must make on-time payments (not more than 30 days late) on your primary mortgage.
If a borrower has one late payment, the 36-month period begins anew. Chenoa Fund's DPA Edge program requires borrowers earn no more than 115% of the median income in Madison County.
Chenoa Fund Edge Repayable Second Product
If you're looking to buy a home in Madison County and have passed the Fannie Mae HomeReady mortgage eligibility requirements, you may be eligible for down payment assistance. The Chenoa Fund provides this assistance to low-income borrowers through the Edge Repayable Second Product.
The Edge Repayable Second Product offers both 10-year and 30-year terms at 5% interest. No income limits exist to qualify for this product, but Borrowers must have a minimum 620 FICO score and a DTI maximum of 45%.
How Chenoa Fund DPA Works With Conventional Loans
Chenoa's conventional Down Payment Assistance Program can partly help cover closing costs—but only after you've made a down payment.
To use your DPA funds, apply for one of these Fannie Mae products:
HomeReady is the perfect option for Madison buyers with low or moderate incomes. With HomeReady, you can get high loan-to-value ratio (LTV) financing to help you purchase a home, even if you can only afford monthly mortgage payments.
HomeReady mortgages are a good option for buyers who want to live in designated low-income, minority, or disaster-impacted neighborhoods. Lenders can offer these types of loans as an incentive for homeownership to qualified buyers in these areas.
It also offers minimal risk-based price adjustments compared to other government mortgage programs. This means you can get a great deal on your house without worrying about paying extra later because of a change in interest rates or other factors outside your control.
Standard Conventional 97% LTV Loan
The Conventional 97 program allows homebuyers to get a mortgage loan with only 3% down—so named because the lender finances nearly all the purchase price. It's not just for first-time homebuyers; you can use it even if you've owned a home before and had a mortgage.
You'll need decent credit, but that doesn't mean you need perfect credit. Just be sure to check with your lender about your specific situation.
Additionally, qualifying for a conventional 97 loan is a breeze if you've got the correct financials.
The minimum credit score for a conventional 97 loan is 620, and we recommend aiming for 700 or above.
Your debt-to-income ratio (DTI) should also fall below 43%. In other words, your total monthly expenses shouldn't be more than 43% of your monthly income.
- There are no income limits attached to this loan type.
Pro Tip - Your application will be rejected for borrowers who already own a home or have owned one in the past three years.
Eligibility Requirements For Chenoa Fund DPA Program
To become eligible for the Chenoa Fund DPA Program, you must meet the following requirements:
You must be a U.S. citizen or lawful permanent resident of the United States.
You must have a valid Social Security or Taxpayer Identification Number (TIN).
Must have good credit (620+ FICO score).
The borrower must earn less than 115% of the area median income (the estimated cost of a home in Madison county), and any down payment assistance can be forgiven.
A debt-to-income ratio of no more than 45 % (meaning your monthly debt payments can't exceed 45 % of your gross monthly income).
All borrowers must complete a homebuyer education course, receive a certification of completion, and have their homes inspected. HUD-approved housing counseling agencies are listed on the Department of Housing and Urban Development website.
- Mortgage insurance is required for conventional loans.
The Chenoa Fund Loan Application Process
Chenoa Fund is offered through approved lenders in Madison County. To obtain a list of approved lenders, send an email to email@example.com.
You can also phone 866-563-3507 to speak with a Chenoa Fund corporate account executive. This person can help you connect with loan officers directly.
Also, while applying for a Chenoa fund DPA Program, please provide the following documents:
Proof of Identity (Government issued ID).
Proof of Address (utility bill or lease agreement).
Last three pay stubs or bank statements (if self-employed, please provide business license).
Tax returns, W2s, and 1099s (if applicable).
- Driver's License or State ID Card (if you own a vehicle).
Once you have chosen a lender, complete an application form (including all required documentation). The final step is submitting your paperwork for verification. You will receive a notification by phone or email when your loan has been approved and funded.
The Benefits Of Chenoa Fund Downpayment Assistance
Have you ever wondered what the benefits of getting a down payment assistance loan would be? If so, allow us to shed some light.
These loans can provide you with several benefits and are something that anyone who wants to buy their own home should consider.
Low Down Payment Requirements - The Chenoa Fund makes it possible for first-time homebuyers to purchase a home with as little as 3.5% down. You'll also receive closing cost assistance, enabling you to buy a home with a significantly lower monthly payment.
Homeownership Education - The education programs teach you how to be a good homeowner and avoid foreclosure. We also provide you with resources such as credit counseling and budgeting classes to help you evolve financially before buying a home.
Affordable Mortgage Rates - The Chenoa Fund offers mortgage loan products with competitive rates and terms to fit your needs. Our mortgage professionals are committed to providing you with the best possible rate and loan program for your home purchase or refinance.
- No Out-Of-Pocket Expenses - You won't have any out-of-pocket expenses when working with Chenoa fund DPA because they cover all the costs associated with buying a home. This includes closing costs, property taxes, and homeowner's insurance, which can add up quickly and make homeownership difficult for low-income families.
Are There Any Drawbacks Of Using Chenoa Funds?
Chenoa Fund's Down Payment Assistance Program (DPA) is an excellent way for families to save money on purchasing their new home and reduce their monthly mortgage payments.
However, there are some drawbacks to Chenoa Fund's DPA program. For example, if you are delinquent on your payments or need more time to repay the loan, you may have to find another funding source. According to their website, this can be not easy because it requires good credit and high-income levels (www.chenoafund.org).
Despite these drawbacks, we still think Chenoa Fund is an excellent option for low-income families in Madison County. We recommend it to people who want an affordable loan with no down payment needed and no credit check!
The Top Places To Get Acai Bowls In Madison County, Florida
Acai bowls are all the rage. They're vegan, they're gluten-free, and they're delicious. The Acai berry is a fruit from the acai palm tree native to the Amazon rainforest. It's packed with antioxidants and has been used for years by indigenous people as a natural remedy for many ailments.
You can find Acai bowls in many places around town, but we've narrowed it down to our top two favorites!
Tropical Smoothie Cafe
Want to take a break from the day-to-day? Come to Tropical Smoothie Cafe and enjoy a delicious acai bowl while you relax in our fun, relaxing atmosphere. The staff is kind and helpful and can answer any questions about the menu.
And if you're feeling pressed for time, they've got you covered - order ahead and order on their mobile app and skip the line.
Sunrise Coffee Shop and Wine
Sunrise Coffee Shop and Wine is the perfect place to go when you're craving a delicious acai bowl. They have so many different topping options, and they're all delicious!
You will love that they also offer wine, which is hard to find in an acai bowl shop. The staff is incredibly friendly and helpful and happy to serve you as fast as possible.
Sunrise Coffee Shop and Wine has become one of the best spots in town for breakfast or brunch with friends or family.
It's a great place for kids because there's plenty of space where they can run around while waiting for their food! If you're looking for a quick bite on your way through town, Sunrise Coffee Shop and Wine will fit the bill!
You're One Step Closer To A Sunny Future!
Your ticket to the Sunshine State is right here, in the form of Chenoa Fund Down Payment Assistance programs.
There's no better time to live in Madison County than now. With our affordable housing options and sunny weather, there's not much more you could ask for.
And now that you know about the Chenoa Fund Down Payment Assistance program, there's no reason not to apply for it today!