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Chenoa Fund Down Payment Assistance Program in Santa Rosa County, Florida

Santa Rosa County, Florida, is one of the fastest growing counties in the United States, thanks to its favorable weather, affordability, and booming local economy. Its family-friendly communities are extra reasons to make this county your home. But if you are facing hurdles on your path to homeownership because you don’t have enough funds for a down payment, the Chenoa Fund DPA might be your way out.

As a homebuyer, it is no secret that acquiring funds for the down payment and closing costs for a home is never easy. For too long, the path out has been to save for years before you can finally start hunting for a suitable property.

Luckily for you, this no longer has to be the case when you can get funds for your down payment with the Chenoa Fund DPA program.

By opting for this program, you stand to get funding to cover the 3.5% down payment requirement when you take a mortgage. However, like all other home funding products available, the Chenoa Fund has terms and conditions that you must meet and adhere to.

Read on to know how this loan works, its eligibility criteria & benefits, and discover the best Acai bowl spots in Santa Rosa County.

What is a Chenoa Fund?

The Chenoa Fund is a down payment assistance financing solution offered by CBC Mortgage Agency (CBCMA). This program targets middle-to-low income individuals and families having difficulty raising funds needed to cover down payment and closing costs. Nationally, Chenoa Fund is available to all qualified homebuyers except those who stay in New York.

The primary objective of the Chenoa Fund is to help you overcome the cost-confines of the home buying process in America. It does this by providing down payment assistance of up to 3.5% of the home buying price, which is the minimum down payment requirement when buying a home with a mortgage.

Depending on your qualifying option, you will receive these funds either as a repayable second mortgage or a forgivable loan.

Since the CBCMA is only responsible for administering this loan, the agency partners with FHA and other top mortgage lenders to avail these funds to qualified borrowers, to qualify for the Chenoa Fund, you must meet the qualification criteria, including a minimum FICO score of 600 and income requirements based on your county’s area median income.

Chenoa Fund Programs

The Chenoa Fund DPA has two distinct programs available for you in Santa Rosa County, Florida. Both programs offer assistance with your down payment and require a FICO score of at least 600 to qualify.

The primary difference is in the loan term and repayment conditions, as one program is forgivable while the other is not. These two programs are:

The Forgivable Program

The forgivable Chenoa Fund program will see you get FHA-backed down payment assistance on a 30-year term at 0% interest.

As the name suggests, this loan is forgivable depending on how well you can pay your FHA mortgage and the DPA amount you qualify for. You will also not need to make a second mortgage payment monthly when you opt for this loan.

There are two loan products under the forgivable program, namely:

  • 3.5% DPA - If you qualify for the 3.5% forgivable DPA, your DPA loan is forgivable if you can make 36 continuous payments of your primary mortgage on time. If you fail to attain this threshold on the first attempt by making a late payment before the first 36 months elapse, you will have the chance to try again until your 30-year loan terms end.

  • 5% DPA - With the 5% forgivable DPA loan, you will leverage this program if you can complete your first 120 mortgage payments successfully. However, your forgiveness period is canceled if you miss a payment for 60 days or more. But, you will still have the entire 30-year loan term to pay back the DPA loan with no monthly fees or interest rates.

For you to qualify for the 3.5% or 5% forgivable DPA loan, you need to meet the following requirements:

  • A FICO score of 640 or more.

  • An income that matches your county area median income.

  • Mortgage Insurance.

You will further appreciate that there are no requirements for a minimum borrower fund when applying for a forgivable DPA loan.

Most importantly, the CBCMA can choose to forgive your loan even if you do not meet the preset forgiveness conditions and make late payments on your primary mortgage. But, you will have to repay the DPA loan in full if not forgiven or when you sell or refinance your home.

The Repayable Program

Unlike the forgivable DPA program, the repayable second mortgage does not offer room for your loan to be written off. Instead, it provides a ten-year DPA loan term at an interest rate of 2% higher than your FHA mortgage.

You will have to make monthly payments if you qualify for this program, with the flexibility of paying off the DPA loan at any time without penalty.

To qualify for the repayable program, you must meet the following eligibility criteria:

  • Have a minimum FICO score of 620.

  • Have an income exceeding 115% of your county’s area median income.

  • Qualify for an FHA mortgage.

  • No income restrictions.

The repayable program has two loan options; either a ten-year DPA loan option at 0% interest or a 30-year DPA loan option at 5% interest. For both options, you will not incur extra interest rates or special fees as long as you adhere to your repayment schedules.

Chenoa Fund Down Payment Assistance

The inability to accumulate enough funds for a down payment is the primary reason most Americans struggle to achieve their homeownership goals.

Luckily, with the Chenoa Fund down payment assistance, homebuyers now have much-needed access to funds to cover these expenses. This program complements the FHA mortgage you qualify for by adding a second mortgage to it.

Therefore, from the 96.5% funding by the FHA, Chenoa Fund covers the remaining 3.5% for 100% funding. Your DPA funding will depend on your income, the amount of FHA mortgage you qualify for, and other thresholds.

You can further choose to combine your DPA with additional FHA-approved funding to cover the closing costs if your loan is not enough to cover these unavoidable payments.

Model house and Down Payment written on torn paper

How Chenoa Fund Works with FHA Loans

Chenoa Fund DPA primarily works with FHA loans as it complements this primary mortgage by offering an extra 3.5% or 5% of your home’s buying price. To qualify for this program, you must first qualify for a 30-year fixed-rate FHA mortgage. You must also meet these other qualifications:

  • An income-to-debt ratio that is not higher than 45%.

  • A FICO score not less than 620.

  • Have a mortgage insurance.

  • No restrictions on minimum borrower fund.

Since these funds only help cover the down payment, you will have to look for other ways to pay the closing costs. You should also remember that, unlike the first mortgage adhering to FHA guidelines, your second mortgage will depend on your income and the county’s median income.

There are three unique ways that Chenoa fund works with FHA loans, and these are:

The Chenoa Fund Advantage Program

Currently ranking as the best-selling Chenoa Fund program, this product allows you to lock in your primary FHA mortgage at a competitive market rate. You will get down payment assistance of 3.5% or 5% that you get to pay over a ten-year term at an interest rate of 8%.

To qualify for the Chenoa fund advantage program, you need a FICO score of at least 640, a debt-to-income ratio no higher than 50%, and a household income of 135% or less of your area’s median income.

The Chenoa Fund DPA Edge Soft Second Program

With the Chenoa Fund DPA edge soft second program, the loan you receive is forgivable if you can complete 36 consecutive mortgage payments on time.

This makes it highly popular among low-income borrowers, given the unique opportunity to have the DPA loan forgiven. The best part is that you have several tries to attain the 36 consecutive mortgage payments during your loan term.

To qualify for the Chenoa Fund DPA edge soft second program, you need a minimum FICO score of 620, a debt-to-income ratio of at least 45%, and an income equal to or less than 115% of your county’s area median income. If your DPA loan is not forgiven, you will have a ten-year repayment period (loan term) at 0% interest.

The Chenoa Fund Payable Second Program

Unlike the Chenoa Fund DPA edge soft second program with income limits for borrowers, the Chenoa Fund payable second program does not have these restrictions.

You only need a FICO score of 620 or higher to qualify for this program, and a debt-to-income ratio is not exceeding 45%. You have room to be eligible for this loan if you have a higher DTI but a higher FICO score.

You will also have two loan options, a 10-year loan attracting 0% interest or a 30-year loan attracting a 5% interest rate.

How Chenoa Fund works with Other Conventional Loans

Chenoa Fund can also work with other conventional loans apart from FHA. With this option, you will get funding of 3.5% of your home’s buying price, which comes as a second mortgage. To qualify for this DPA loan, the eligibility criteria to meet are:

  • Have a credit score of 640 or higher.

  • Have a debt-to-income ratio no higher than 50%.

  • Get a second mortgage for a ten-year term at an interest rate not higher than 2% of your first mortgage.

You will appreciate that with this loan option, you can use the loan to assist with the down payment and closing costs, as long as the down payment is already paid in full. Typically, these funds are offered through Fannie Mae products and can combine with the 97% loan-to-value or HomeReady program.

Additional Benefits of Chenoa Fund

Opting for the Chenoa Fund offers additional benefits beyond providing the funds for a down payment. As a borrower who qualifies for this program, you will receive pre and post-purchase counseling to help you navigate these new waters, especially during your first year of homeownership.

Chenoa also provides financial training and homebuyer education to borrowers with a credit score below 640. This training will help you become more responsible with your finances and build the capacity to be an accountable homeowner. The CBCMA provides a separate training course for borrowers with a credit score below 620.

Finally, you will love that Chenoa Fund is an independent agency responsible for handling all your issues. However, the CBCMA is liable to the FHA and will review each loan to ensure they meet the specific product criteria.

How to Apply for Chenoa Fund Loan

The Chenoa Fund loan application process is straightforward, regardless of your loan option. Whether you opt for an FHA loan or work with other conventional loans, the steps to follow are:

  • Step 1 - Fill out the Chenoa Fund Contact Form - The first step is to fill out the Chenoa Fund contact form, which the agency uses to link you with a representative. All the information you provide is private and only shared with approved lenders after approval.

  • Step 2 - Get in Touch with a Chenoa Fund Representative - The Chenoa Fund representative will walk you through the program, guide you on homeownership goals, and address all concerns you might have. Finally, the representative will refer you to an approved lender.

  • Step 3 - Work with an Approved Lender Near You - The approved lender will offer you a financing option based on your eligibility. You can then choose to close after going through the financing details.

5 Best Places to get Acai Bowl in Santa Rosa County, Florida

Few things beat the thrill of enjoying an Acai bowl on a hot day in Santa Rosa County, Florida. Luckily for you, the sunny county will always get you in the mood for this healthy treat that will satisfy your sugar cravings while giving you an exceptional energy boost.

Here are the five best places to get Acai bowl in Santa Rosa County, Florida:

  • Bear Fruit Bowls and Coffee - This establishment lives true to its name as it serves some of the best fruit bowls and coffee you will ever have in Santa Rosa County. It is a must-visit for anyone visiting Pensacola beach, and you will love the freedom to customize your acai bowl with your favorite toppings.

  • City Bowl South - City Bowl South has been an iconic food truck on the Gulf Coast for years, specializing in all-natural and healthy bowls. Today, they have a Gulf Breeze restaurant, and the truck continues to serve Pensacola, Pace, and Navarre. For their Acai bowl, you will love the plentiful options and great tastes that will always see you returning for more.

  • Frozen Ropes Yogurt - Frozen Ropes Yogurt is another popular spot in Pensacola for huge and delicious Acai bowls that you get to build on your own. You can never go wrong with this establishment as it has other treats, including cold press juices, frozen yogurt, and other healthy servings that suit the whole family.

  • Tropical Smoothie Café - Tropical Smoothie Café brings out the best of Navarre as it has a relaxing atmosphere made better by its healthy servings. The Acai bowls in this establishment are fresh, which is a huge plus for an establishment that often attracts much traffic. For all those days you are pressed on time, try and order ahead as there is always a line of customers waiting for their delicious treats.

  • Superbowls and Smoothies - Superbowl and Smoothies stand out for its signature selections of Acai bowls, making it a busy shop as locals and visitors crave their offerings. You can also choose to make your bowl or enjoy their smoothies, which are equally a big hit.

The Bottom Line - Consider Chenoa Fund Today

Santa Rosa County, Florida, is a great place to settle with your family as it has all you need for a happy and satisfactory lifestyle. It gets better as you no longer struggle to own a home in this county just because you cannot afford a down payment when you can cover these costs with Chenoa Fund.

Make your homeownership dreams a reality today by contacting an approved lender to determine if you qualify for the Chenoa Fund DPA.

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