The down payment is the most difficult part of buying a home. To help you realize your dream of homeownership, CBC Mortgage Agency has partnered with The Chenoa Fund to offer down payment assistance in Taylor County and across Florida.
What Is the Chenoa Down Payment Assistance Program?
CBC Mortgage Agency, a subsidiary of CBC Financial Services, is a mortgage company that offers down payment assistance to help people with no money for a down payment but who have the right income and credit history.
Many people dream of owning their own home but can't afford to buy one because they don't have enough money to make a down payment. Many lenders require 20% or more for closing costs and other expenses, but few families can scrape together such large sums.
As such, if you are looking for somewhere else to live with your family but don't have enough savings set aside for a down payment on your next place, speaking with officials at Chenoa Fund could be something worth considering as an option!
The program offers financial support for homebuyers who would otherwise not be able to make their monthly mortgage payments on time after purchasing their new home. The money for this program comes from a combination of state funds, local government agencies, and private donations made by individuals like you.
This program helps homebuyers who qualify to purchase their home with only a 3.5 % down payment. Under this program, you can get funding for your home loan for most types of financing.
If you qualify for a $300,000 home, you will receive up to $10,500 for your down payment and closing costs. The Chenoa Fund offers a down payment assistance program that allows you to receive up to $10,500 for your down payment and closing costs when purchasing a home in certain Taylor county areas. The interest rate is fixed for all the years of homeownership.
This program costs $1,350 per month for five years, with an option to pay off early without penalty. The application process can take as little as 30 days and be completed online.
Qualify for the Chenoa Fund
You may be eligible for the Chenoa Fund if you meet all of the following criteria:
You are a first-time homebuyer.
You have good credit.
Your income is sufficient to pay your monthly mortgage, taxes, and insurance with some extra money left each month.
- Your credit score is at least 640 or above.
FICO score of 620, but you can qualify with a 600
The Chenoa Fund is one of Taylor County, Florida's most popular down payment assistance programs. To qualify for this program, your FICO score must be at least 620.
However, meet all other requirements and have a lower credit score than 620. You may still qualify for this or other home buyer assistance programs in Taylor County because they allow for some exceptions to their minimum requirement.
Homebuyer education and counseling are mandatory
The Chenoa Fund requires that all homebuyers complete a pre-purchase course through their approved housing counseling agency.
This requirement to complete a homebuyer education course is designed to ensure that you understand the details of your mortgage and have made an informed decision about purchasing a home in Taylor County.
Homebuying can be complex and confusing; learning as much as possible is essential before making such a significant financial commitment.
Homebuying education courses provide information on topics such as:
The pre-purchase course will help identify potential problems with your application for a loan before closing on selling your new home or investment property.
It also provides valuable resources regarding programs available through nonprofit organizations like ours, which offer assistance with down payment funds for qualified buyers who otherwise would not be able to purchase homes within Taylor County.
DTI required is 45- 53
This means the income you use to pay housing costs cannot exceed 45% or 53%. You can determine this by dividing your monthly rent or mortgage payment by your gross monthly income.
For example - if your monthly rent is $1,000 and your gross monthly income is $5,000, your DTI ratio works out to 20% ($1000/$5,000). If you have debt on top of this, such as student loans or credit cards, these will need to be factored in.
The home must meet property requirements
You must meet specific property requirements when applying for the Chenoa Fund down payment assistance.
The home must be within FHA limits and in Taylor County, Florida. It can be a single-family home, duplex, or apartment building, but it must have four or fewer units.
CBC mortgage agency works with FHA for downpayment assistance
FHA loans require a minimum down payment of 3.5%, but CBC Mortgage Agency can work with the FHA for downpayment assistance. This is an example of one of the many non-first-time home buyer programs offered by the Chenoa Fund, which helps low-income families buy homes in Taylor County, Florida.
This is an excellent opportunity for anyone who wants to purchase a home in Taylor County, Florida but does not have enough funds for the full down payment on their own.
The 3.5% downpayment assistance from Chenoa Fund can help you meet FHA downpayment requirements, which is the minimum amount of money you need to pay toward your mortgage. This program is available for FHA loans.
FHA loans are insured by the Federal Housing Administration (FHA), a government agency that protects lenders against losses on home loans in case borrowers default on their mortgages.
CBC mortgage agency provides home buyers assistance throughout the home buying process
CBC mortgage agency provides home buyers assistance throughout the home buying process. CBC is a full-service mortgage company that can help you get pre-approved for a loan and take care of all the paperwork involved in purchasing your home.
Chenoa Fund Downpayment Assistance Programs and Products
These programs may be combined with other down payment assistance programs if qualified:
Chenoa fund rate advantage program
The Chenoa Fund Rate Advantage Program is for borrowers with a FICO score of 620 or higher. The rate advantage program provides up to 3.5% down payment assistance.
Borrowers must qualify for the Chenoa Fund Rate Advantage Program to be eligible for this product, as it requires a DTI of 50% or less and an active checking account with direct deposit.
Funds attract an interest rate of 8%, which is subject to change after closing and may vary based on your credit score.
Chenoa fund DPA edge program
The Chenoa Fund DPA Edge program offers 3.5% mortgage assistance with a FICO score of 620, DTI of 45, and funds are fixed rate and forgivable.
The Chenoa Fund DPA Edge program gives you 3.5% down payment assistance on single-family homes or condos in Taylor County, Florida.
Chenoa fund edge repayable second product
The Chenoa Fund Edge Repayable Second Product is a loan program offered by the Chenoa Fund to help you become homeowners.
This product allows you to get a loan term of 10 years at no (zero) interest rate or 30 years at a 5% interest rate. To qualify, your FICO score must be 45 or higher, and your DTI ratio must be 45% or lower.
The Application Process
The application process for the Chenoa Fund Down Payment Assistance Program is a bit more complicated than most other down payment assistance programs, and you must follow the steps carefully. The program consists of five parts, which are:
Step 1 - Pre-Qualification
You must contact the Taylor County Housing Authority and request an application packet. This packet is available online, so you can start the process before meeting with a representative.
The application packet will contain all the necessary paperwork and information to complete the application process.
Step 2 - Homebuyer Education and Counselling
Once you have completed your application, it will be sent to the Taylor County Housing Authority. They will then send you an email asking you to complete some additional homebuyer education and counseling forms. This step is not required by law or any government agency.
Still, it is highly recommended that you take advantage of these services because they will help prepare you financially for buying a home and ensure that you are ready before applying for any loan program.
Step 3 - Loan Application and Purchase Contract
Once your financing is lined up, it's time to apply for the grant.
You will need to meet the income requirements for this program (see above), so make sure that your W2s and two most recent pay stubs are ready to submit with your application.
The application process is pretty simple, but there are some essential things to remember.
Step 4 - Appraisal
You will also need an appraisal on the home you wish to purchase through this program. The appraiser will need a copy of the sales contract between you and the seller and any closing documents, such as title insurance policies.
They will also want proof that your down payment assistance has been approved by Chenoa Fund and documentation showing that you have obtained financing through a participating lender (including contact information).
If you do not yet have financing lined up, they may require additional documentation (such as an approval letter from a lender) before completing their appraisal report.
Step 5 - Closing and Move-In
Once you have received your home, you will need to close. This is the final step in the process, and there are some important things you need to know before closing day.
You need to know what day you are closing on your home. If it is not the same day you signed the contract, please contact their office as soon as possible so we can make arrangements for this date change.
You will also be required to provide proof of funds for down payment assistance from the lender before closing.
Benefits of Chenoa Fund Downpayment Assistance
Chenoa Fund mortgage downpayment assistance is a great way to help you get into your home sooner. Here are some of the benefits of this program:
You can get into a home sooner
When you qualify for Chenoa Fund mortgage downpayment assistance, you'll be able to start building equity as soon as possible.
That means you'll have more money to spend on other things, like paying off high-interest credit cards and student loans. Plus, if you ever decide to sell your house, you could make a profit and pocket some extra cash in the process.
You'll save money in the long run
If you decide to stay in the home for five years or more (and most people do), you'll start saving money immediately by avoiding risky loans with high-interest rates and fees.
You can also save money by avoiding paying rent each month and instead building equity in an asset that belongs entirely to you.
You'll have more money to spend on your home
Homeownership is America's most common pathway to wealth building, but it's not for everyone. Many people don't have the means to make a 20% downpayment, which can add up to tens of thousands of dollars — especially in expensive markets.
That's where we come in! We can help you get into your home with our affordable mortgage downpayment assistance programs.
You can start building wealth as soon as possible
Owning a home is one of the best ways to build wealth. When you own a home, you can save money on rent, build equity and take advantage of tax benefits. Plus, homeownership boosts self-esteem and improves social mobility for future generations.
You can avoid risky loans
If you're buying a home with too much debt in the form of high-interest rate credit cards or payday loans, you could find yourself deep in debt before long — even if your mortgage payments are affordable.
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There is a lot of good information about the Chenoa Fund Down Payment Assistance Program. This program can help you get into your new home and move closer to your dream of homeownership. Contact us today to see if you qualify for this program!