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Chenoa Fund Down Payment Assistance Program in Putnam County, Florida

Many Americans would love the experience of becoming a homeowner. Mortgage loans that are now accessible have the homeownership dream a reality for most citizens. However, lending firms always demand certain specifications to determine whether you qualify for mortgage loans.

These conditions often include a down payment which ranges from 3% to 20% of the entire mortgage loan amount, depending on your loan type.

What happens if you can't pay this sum? Does that mean you'll never be able to realize your dream of owning a house? A program that assists with your down payments and closing costs, the Chenoa fund, is available for people like you.

Read on to learn more about this fund, its programs, its products, and who can qualify for these funds.

What is Chenoa Fund?

With a focus on improving access to homeownership for all natives, CBC Mortgage Agency created a program known as Chenoa Funds. The downpayment assistance program focuses on low and moderate-income people who are creditworthy and with the desire to become homeowners.

The goal is to create affordable homeownership by neutralizing the expensive down payment and closing costs that mortgage lenders require. CBC Mortgage Agency utilizes this program to provide down payment assistance solutions.

The agency issues loans and grants that you could use to cover down payments or closing costs on mortgage loans. However, not everyone is eligible to qualify for this program. Why so, though? Let's find out;

Who Qualifies for Chenoa Fund?

The first mortgage must comply with FHA regulations. However, for the second mortgage, the lender uses the borrower's qualifying FICO score, income, and the Area Median Income (AMI) standards of HUD to determine eligibility.

Borrowers in Putnam County, Florida, must meet these specifications to qualify for Chenoa funds down payment assistance;

  • Have a debt-to-income ratio of 45% or less.

  • FICO score of at least 600.

  • Mortgage protection in the form of insurance is necessary (i.e., all FHA loans are insured).

  • Lenders require that your income be less than 115% of the Area Median Income (AMI). Meeting this qualification sets you up for loan forgiveness. You could still qualify for the loan if you earn more than 115% of the AMI. In such circumstances, you must repay the down payment assistance.

  • Some lenders require payment of mortgage insurance premiums.

  • You might require a homebuyer education, depending on your credit score.

  • The loan is a reserve for first-time homebuyers. However, you could still qualify as a second-time buyer.

  • Loan amounts depend on the home's county and follow the standard FHA guidelines.

  • You must meet the FHA loan eligibility requirements.

What are the Different Programs and Products Chenoa Funds Offers and The Program Guidelines?

Here are the three available programs compatible with the FHA loans;

Chenoa Fund Rate Advantage Programs

The advantage program may be the most suitable DPA program for many consumers. Borrowers have access to down payment assistance of up to 3.5%. Besides, you can also lock in a possible rate on your primary mortgage loan.

To qualify for this program, you must meet these qualifications;

  • FICO score of 640 or higher.
  • A debt-income ratio of 50%.

The program sets its income limit at 135% of the borrower's residing county's median income. For instance, if you live in Putnam County, Florida, your income limit must be 135% of the median income of Putnam County.

This loan option attracts a 10-year repayment term at an 8% interest rate.

Chenoa Fund DPA Edge

The down payment assistance edge option is a soft second home loan popular among borrowers with lesser income. This type of mortgage loan is interest-free and doesn't demand monthly payments. Additionally, it is a forgivable down payment assistance program.

The mortgage is, however, forgivable after 36 months. Also, you must have made timely monthly payments on your primary mortgage to qualify for the program.

Remember, the 36-month window resets whenever a borrower makes a late payment. The reset gives you another chance to attain loan forgiveness. Also, lenders issue the forgivable grant upon the borrower's request.

Here are the requirements for this DPA;

  • A FICO score of 620 or higher.

  • A debt-income ratio of 45% or lower. (The debt-income ratio requirement may upsurge with a higher FICO score).

Residences in Putnam County, Florida that need this program must have an income limit of 115% of Putnam County's median income.

Chenoa Fund Edge Repayable Second Product

This type of DPA does not restrict income limits for borrowers to obtain eligibility. The options available for this DPA are a 30-year term loan with a 5% interest or a 10-year term attracting 0% interest.

The requirements for qualification are;

  • FICO score of 620 or more.
  • A debt-income ratio of 45% or less.

Chenoa Funds Program Guidelines

Here are the significant points to note about the Chenoa funds program;

  • The program approves second mortgages in Putnam County, Florida, which are either repayable or forgivable, depending on your program type.

  • It offers a 3.5% to 5% down payment assistance for second mortgages depending on the program you qualify for.

  • Both the origination and lender fees must adhere to at least 3% of TILA-RESPA (TRID) rules.

  • This downpayment assistance program allows only approved lenders for loan underwriting and approvals.

  • It does not allow three to four-unit homes giving an exception to two-unit properties.

  • They only allow manufactured home only on FHA loans.

  • The program favors properties like condominiums, modular houses, townhouses, single-family homes, and PUDs.

How Much Down Payment Assistance Does Chenoa Fund Provide?

Chenoa funds program assist qualified borrowers with up to 3.5% to 5% of the buyer's total home cost. Depending on the program, the loan can be forgivable or repayable on second mortgage products. Also, for the loan to be forgiven, you must meet specific stipulations the program demands.

The program only allows loans from approved lenders and those with FHA loans. The grant delegates underwriting authority to approved lenders, making the process simpler.

Additionally, recipients of this assistance may combine it with seller concessions following FHA rules to assist with closing costs.

Typically, the program is an incredible way for borrowers to direct their savings to other emergencies while purchasing a home.

Repayable DPA program

The repayable fund scheme will have a 10-year term and an interest rate of 2% higher than the mortgage interest rate. The item is wholly amortized at a predetermined rate.

Forgivable DPA Program

When you satisfy the prerequisites for forgiveness, your lender forgives the loan or converts it into a grant at your request. The 30-year forgivable program carries a 0% interest rate (0% APR) and requires no monthly reimbursements.

The DPA amount determines the forgiveness condition if you meet the following:

  • 3.5% - This down payment assistance percentage receives mortgage forgiveness after 36 consecutive on-time payments (payments not exceeding 30 days). Remember that your lender will rest the forgiveness period if you delay your regular payments. Besides, the loan might also lose its forgivable status if you refinance your first mortgage during the first 36 payments.

  • 5% - The first mortgage is forgiven after you complete 120 consecutive, on-time payments on your mortgage. If one of your payments is 60+ days late, expect your lender to terminate your forgiveness period. Your loan maintains its 30-year term.

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How Do Chenoa Funds Work with FHA Loans?

Being a homeowner comes with a plethora of advantages. Thanks to FHA mortgage loans, first-time home purchasers are guaranteed access to inexpensive mortgage options.

In addition to working with this DPA program to help homebuyers who cannot make a down payment, FHA allows borrowers to qualify for mortgages despite having low credit scores. Unlike other private lending companies.

Higher self-esteem, higher satisfaction, and higher perceived control over one's life are now advantages for low-income earners who can become homeowners.

When you apply for FHA first mortgage loan, you can take a loan of up to 96.5% of a home's worth if your credit score is at least 600. The regulations require you to pay a 3.5% down payment to deem you eligible.

Chenoa fund collaborates with FHA loans to cover the total down payment cost of up to 3.5% of the home's value. You will only need to foot the closing expenses after that.

For instance, if you apply for a 30-year fixed FHA mortgage loan and you do not have the funds to foot the 3.5 down payment requirement.

You can obtain the fund's repayable second mortgage to cover the 3.5% down payment. By combining the two, you will get 100% mortgage financing.

Example - First mortgage at 96.5% + 3.5% DPA = 100% CLTV (combined loan- to-value ratio).

What Are the Benefits of Utilizing Chenoa Funds?

Here are the benefits of obtaining Chenoa funds down payment assistance program;

Fulfills the Low-Moderate Income Earners' Dreams of Owing a Home

Sometimes back, owning a home was only a dream that could never come true, especially for low-income earners. Fortunately, the CBC mortgages program, Chenoa Funds, has made it possible for these natives to fulfill the accomplishment.

The best part of the down payment assistance program is that you can purchase a home for less than what it costs. The Chenoa Fund program contributes to down payment assistance of 3.5% to 5% of the house's price.

Your lender can forgive the down payment assistance if your income doesn't exceed 115% of Putnam County's median income. This means you necessarily do not have to pay back the loan. However, you must adhere to the required stipulations to be forgiven.

Additionally, this DPA program generates enough revenue to maintain and grow the down payment assistance program and other initiatives to promote homeownership, making it self-sufficient. Therefore, future program users don't need to be concerned that it will stop running.

Provides Homebuyer with Counseling Before and After the Purchase

Chenoa funds program educates buyers contemplating purchasing a home on the responsible ways to handle risks and how to be a responsible homeowner.

This education is an advantage for inexperienced first-time homebuyers who may not understand the complicated details of home financing.

Also, the counselors are available to solve any incoming challenges in your home-buying journey. As a result, they are making the homebuyer's journey successful.

Help Homebuyers to Overcome Obstacles with Mortgage Lenders

If you fail to meet mortgage lenders' down payment regulations, you might have to pay some mortgage insurance. Funding the insurance eventually accumulates in higher mortgage rates.

Chenoa Fund assists lenders in giving homebuyers who struggle with down payments the crucial flexibility they require.

Additionally, under certain circumstances, the lender will forgive the loan, ensuring that a real estate agent can present you with a highly alluring down payment and closing cost relief option. As a borrower, you may use that money to enhance your savings.

How Do You Apply for Chenoa Funds Down Payment Assistance?

Chenoa funds program lists approved lenders through which any borrower can submit their applications. The funds will be made available to the correspondent lender, not the borrower.

You should ask your lending institution if they offer this downpayment assistance program. After that, if you meet the eligibility requirements, you can fill in your submission through their email.

You can also contact their hotline numbers to speak with the executive who will assist you through the process.

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Begin Your Journey to Home Ownership Today

Nothing stops you from applying for the Chenoa funds down payment assistance program. Whether repayable or forgivable terms, the long-lasting effects are equally more satisfying.

You only need to complete the formalities as per the lender's specifications. Why not start the journey of becoming a homeowner today?

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