This county is rich in history, a friendly community, and the perfect place to call home. But the most significant challenge to homeownership is the down payment, which delays owning a home in Sumter County for several years. It takes years to save up for the down payment since you are required to have at least 20% of the purchase price.
The good news is the Chenoa Fund offers down payment assistance for both FHA loans and other conventional home programs. This DPA can help you begin the process of becoming a homeowner.
If this sounds like the right option for you, read on to learn more about the different Chenoa Fund program, their benefits, and how it works with other loans. Find out also where to get the best acai bowls in Sumter County.
What is Chenoa Fund
In many cases, borrowers may have enough income to make a mortgage but lack the funds to cover a down payment or closing costs. The Chenoa Fund offers you down payment assistance that allows you to purchase your home without exhausting your savings. The DPA helps you with closing costs and down payments.
The Chenoa Fund is available nationwide, and low to moderate-income home buyers can access it in any state apart from New York. The DPA depends on your income level and must meet a few minimum requirements. The Chenoa Fund program requires at least a 600 credit score and a DTI of 50%.
The DPA offers you 3.5% or 5% financing, depending on your home's purchase price. Thus, you can obtain complete mortgage funding from Chenoa Fund, with 96.5% financing from the FHA loan and the remaining 3.5 % from Chenoa Fund programs. You can quickly pay for a down payment, closing costs, or a combination of the two.
You can combine the Chenoa Fund with FHA or other traditional home loans. These approved lenders will help you decide which Chenoa Fund is best for you depending on your homeownership goals and after evaluating your financial status and pulling your credit history.
Programs Offered by the Chenoa Fund
The Chenoa Fund has three programs that offer you down payment assistance to pay for your down payment, along with some closing costs. These programs help homebuyers achieve the minimum mortgage requirements and get financing.
The following are the programs that the Chenoa Fund offers:
DPA Edge Repayable Second
The DPA edge repayable second has two options - you can choose the 30-year term at 5% interest or the 10-year term at zero percent interest.
Both options are repayable, so you'll have to pay both the primary and second mortgages. You can pay off the second mortgage at any time during the loan period without facing any penalties.
DPA Edge Soft Second
With the DPA edge soft second, you will receive a 30-year loan with zero interest rate and a second mortgage without payments.
But to qualify for this program, you have a credit score of not less than 620 and a qualifying income of not more than 115% of your county's median income. This loan program is forgivable if you make the primary mortgage payments on time for 36 consecutive months.
The rate advantage has a 10-year term at 8% interest and allows you to lock in your mortgage at a competitive rate.
To enjoy the benefits of this program, you must have a credit score of not less than 620, a debt-to-income ratio below 50%, and a qualifying income no higher than 115% of your county's median income.
How to use Chenoa Fund with an FHA Loan
The Chenoa Fund acts as a second mortgage with an FHA loan as the primary mortgage. It provides a solution for qualified homebuyers who lack or do not wish to use their funds as a down payment.
And it comes in two options, and you may apply for assistance as Forgivable loans, also known as the soft second, and Repayable loans:
This DPA program is forgivable after meeting specific conditions. You may choose between a 5% second mortgage to pay the down payment and closing costs and a 3.5 % second home loan for your down payment. This second mortgage has no interest and monthly payments. Plus, you'll never have to pay back the loan if you make your housing payments on time.
The 3.5 % loan is forgivable if you pay on time for 36 months, while the 5% is forgivable after repaying the loan for ten years without falling behind by more than 60 days. If you fall behind and as a low to middle-income earner, there will still be no interest or payments, but you will have to repay the second mortgage when you sell or refinance your house.
The second loan requires a monthly payment for higher-income earners, and you may choose a 10-year zero-interest loan or a 30-year loan at a 5% interest rate. Generally, you don't have to pay back the entire forgivable mortgage as long as you meet the forgivable requirements. But you must pay it back upon refinancing or selling the house.
The repayable second offers you 3.5% of the home's price toward the down payment on an FHA loan. You can pay off this second mortgage at your convenience if you have an FHA loan as your primary mortgage. This DPA program requires you to pay back the down payment amount borrowed. To remove the title's lien, you must pay the repayable second.
This DPA also requires you to repay your primary FHA mortgage and need a credit score of at least 600 to qualify for the repayable second mortgage assistance. Then, you will receive financing of 3.5% or 5% depending on the buying price of the home. The funding goes towards covering the down payment and closing costs.
The CBC Mortgage Agency can decide to forgive your FHA loan after the term has expired despite a late payment history or failure to meet the conditions of forgiveness on this 30-year loan. But, if your loan does not have complete forgiveness, you will need to repay it if you refinance or sell your home.
Using Chenoa Funds for Conventional Loan Down Payments
Also referred to as the Chenoa Fund Conventional Loan, this program offers you 3.5% down payment assistance as a second mortgage.
You can use it with the 97% LTV conventional mortgage financing, which is available as part of Fannie Mae's HomeReady program for low and moderate-income borrowers.
But if you are not eligible for the HomeReady assistance and can't afford to pay a larger down payment on a house, you may opt for the Standard 97% loan-to-value financing.
The main benefit of this loan option is it offers you favorable interest rates on your primary mortgage, and you can repay the DPA as a second mortgage over ten years with an 8% interest rate.
Other Advantages of Chenoa Fund
The CBC Mortgage Agency is committed to the success of Chenoa Fund borrowers. And the most significant advantage of this loan is that it ensures that borrowers not only qualify for a mortgage but also become successful long-term homeowners.
The Chenoa Fund offers additional benefits as you start your homeownership journey, which include:
Counseling After Purchasing a Home
As part of the Chenoa Fund, you receive 18 months of post-purchase homeownership counseling to give you peace of mind knowing that you have a professional at your side, working to ensure your success.
Sometimes, knowing you won't be alone gives you the confidence boost necessary to take the plunge and become a homeowner.
Higher Down Payment
Rate Advantage provides up to 5% down payment assistance, and choose between 5% or 3.5% down payment assistance when paired with an FHA loan.
In addition to the assistance amount, the interest rate on the first mortgage is the only difference between the 3.5% and 5% DPA Rate Advantage products.
Offers Opportunities to Underprivileged Communities
The Chenoa Fund offers underprivileged communities an opportunity to build wealth while achieving the American Dream.
This DPA program aims to reach out to middle and low-income individuals who fall outside the scope of conventional down payment assistance and facilitates their entry into the housing market, which they would otherwise not be able to access.
The Chenoa Loan Application Guide
In a market where lenders are under pressure to remain profitable and lock out potential home buyers with stringent requirements, the down payment assistance from The Chenoa Fund provides crucial support that makes it possible to own a home.
And here's how to apply for Chenoa Fund and begin your homeownership journey.
The benefits of owning a home include building equity, establishing generational wealth, and not having to deal with yearly rent increases.
Doing research is an essential step that helps you determine the type of mortgage you can afford based on your finances. By assessing your credit score, you can establish if you qualify for Chenoa Fund.
Find an Approved Lender and Pre-Approval
You should shop around for the right lender for the best interest rates and loan terms. A licensed lender analyzes your financial health to evaluate your eligibility. Consulting a Chenoa Fund representative for guidance is an excellent way to find the best lender. The representative will refer you to an approved lender based on your homeownership goals.
Upon finding a lender, they will determine if you qualify for a DPA based on your financial status and credit history. If you are eligible, you will receive a pre-approval letter. In this letter, your lender acknowledges their willingness to lend you the down payment you need to buy a house.
Shopping for a Home
Like finding the right lender, you should work with a real estate agent who meets your homeownership needs.
Making a checklist of the items to consider helps the agent know what you want. The checklist ensures that your real estate agent finds an ideal house within your budget and assists you in submitting an offer with your pre-approval letter.
Your real estate agent will prepare a purchase contract after you find a house and decide what to offer. Following this, both the seller and their agent will go over the contract. You will then provide a down payment or earnest money deposit.
Usually, you put down 3 % of the buying price as the earnest money deposit to show that you are serious about buying the property.
A home inspection confirms that a house is in good condition and it is safe to move forward with purchasing it.
A home inspection finds out whether there are any structural issues with the home, after which a licensed appraiser assesses the home and determines its value depending on the property's condition.
During closing, you'll work with your loan provider, the real estate agent, and a title company. Once your offer is accepted, you will sign all paperwork and receive your keys.
Congratulations! You're now a homeowner. You'll receive post-purchase counseling from Chenoa Fund for the next 18 months.
Best Places to Get Acai Bowl in Sumter County, Florida
Sumter County, Florida, has an abundance of tourist attractions, and you can fuel up at juice and smoothie places as you explore the county.
These spots around Sumter County have acai bowls perfect for energizing your day. The acai bowl is a must-try whether you're a health enthusiast or looking for a healthy treat.
Hippie Bowls Smoothie Bar - The Hippie Bowls Smoothie Bar has one of the most welcoming and friendly atmospheres. The restaurant specializes in nutritious Açaí and Pitaya bowls, juices, and smoothies. They also serve vegan and gluten-free options such as the chocolate and peanut butter acai bowl. You have plenty of unique acai bowl options to try, but the flavor combo is a fan favorite.
Prana Rx - Prana RX makes all its acai bowls, cold-pressed juices, and smoothies from locally grown and freshly harvested fruits. The Jai bowl is their in-house acai bowl creation and is a hit with great reviews. The recipe uses locally grown organic blueberries as the base and a mix of seasonal fruits and toppings of your choice. It's also suitable for a cup of a slow pour or cold brew coffee.
Brick & Iron Cafe - Brick & Iron Cafe is a cozy and rustic spot that serves plenty of acai bowls and different fruit smoothies. They do protein and non-protein acai bowls, gluten-free toppings, and everything from low-sugar fruit smoothies to no-sugar smoothies according to your taste. Whatever options of acai bowls you may think of, you'll find them here.
The Juice Box - This charming spot lets you indulge your sweet tooth with fruits and is better than ice cream. The Juice Box serves organic, dairy-free, vegan, and fresh acai bowl bases. The service is excellent, and the açaí bowls are out of this world. You will have trouble choosing what to order, but you can create your bowl and boost your flavor with a dash of vegan plant protein.
- Power Smoothie Café - The Power Smoothie Cafe serves the perfect acai bowl to boost your energy and start your day. It's packed with protein, thanks to a topping combination of satisfying almond butter with blueberries, granola, almonds, and bananas. A health-friendly base of acai coconut cream, oat milk, and coconut cream is perfect for fueling your day.
The Bottom Line - Get Started with Chenoa Fund Today
Sumter County is the best place to live, with great weather and fun activities. But purchasing a home can be challenging because of the down payment requirement, which takes years to save. The Chenoa Fund addresses this concern by offering up to 5% down payment assistance, helping you make your homeownership dream a reality.
You can choose from the different available Chenoa Fund programs depending on your financial ability. Depending on your loan type, the loan may be forgivable, provided you meet specific requirements.
If you already have an FHA loan, you can take the Chenoa Fund as a second mortgage and complete the down payment requirements.
Begin your homeownership journey today by contacting an approved lender.