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The Chenoa Fund Income Limits in 2024 - Explained

If you're considering applying for a Chenoa Fund loan, understanding the income limits is crucial. The Chenoa Fund provides down payment assistance to help low-to-moderate-income borrowers achieve their dream of homeownership.

In this comprehensive guide, we'll explore what the Chenoa Fund is, how income limits are calculated, exceptions and exemptions to these limits, as well as the benefits and tips for maximizing your eligibility.

Does the Chenoa Fund Have Income Limits?

The Chenoa Fund offers help to people buying their homes with FHA loans. The Chenoa Fund has absolutely no income limits - but if your income is below a certain number (135% of the area's average), you can get a better deal.

How to Find Out If Your Income is Below 135% Area Average

The Chenoa Fund wants you to use a specific website to find this out - the HUD Area Median Income site. Here’s how:

  • Visit the HUD website.

  • Look for the newest year listed.

  • Choose your state and then your county.

  • Click a button that says “View County Calculations”.

  • If your family has 1 to 4 people:

    • Look for a big number called “Median Family Income”.

    • There's another number for families of 4 in the “Very Low Income Limits” row. Double this number.

    • Use the bigger of the two numbers you found.

  • Multiply this number by a bit more (either 115% or 135%) to get your final number. This is your income limit.

Note - Sometimes the HUD website might show options that don't apply to the Chenoa Fund™. And, if you find a bigger income limit using another method or website, you can use that bigger number.

Is There Another Way to Calculate?

Yes, especially if your family has 4 or more people. Here’s how:

  • Go to the same HUD website.

  • Again, pick the newest year, your state, and county.

  • Click the “View County Calculations” button.

  • Look at the “Very Low Income Limits” row for your family size.

  • Double the number you find.

  • Multiply that number again by either 115% or 135% to find your income limit.

Note - You can use this method for smaller families if it gives a higher number than the first method. But, if you're counting more people in your family than what you told in your home loan application, Chenoa Fund™ will ask for an explanation.

And that's it! Remember, this is just a guide to understand income limits. Always double-check and make sure you're using the correct numbers and methods.

Factors influencing income limits

Role of household size plays a crucial role in determining income limits for the Chenoa Fund. Larger households tend to have higher income limits compared to smaller households, as they typically have more financial responsibilities and expenses.

Geographic location also influences the Chenoa Fund's income limit calculation. Income limits may vary depending on the cost of living in different areas. Higher-income areas may have higher income limits, while lower-income areas may have lower income limits.

Borrower credit score and debt-to-income ratio are important considerations in setting income limits for the Chenoa Fund.

A higher credit score and a lower debt-to-income ratio can potentially qualify borrowers for higher income limits, reflecting their ability to manage their finances effectively.

By taking into account household size, geographic location, borrower credit score, and debt-to-income ratio; the Chenoa Fund ensures that its income limit calculations are comprehensive and fair for potential homebuyers seeking assistance with down payment funding.

Different income limit categories

Explanation of low-income, moderate-income, and high-income categories:


Individuals who fall under the low-income category have limited financial resources.

They often struggle to meet their basic needs and may qualify for various assistance programs such as subsidized housing or food stamps.

When it comes to loans, they may face higher interest rates due to their limited income.


The moderate-income category includes individuals who earn a decent salary but still face some financial constraints.

They are not eligible for certain assistance programs but may benefit from down payment assistance or affordable housing options.

However, there might be restrictions on the loan amount they can borrow.


Borrowers with higher incomes belong to the high-income category. These individuals have greater financial stability and flexibility in managing their expenses.

They are less likely to require special loan options or assistance programs, but should consider other factors like tax implications when choosing a loan option suited for them.

Model house and coins in glass bottle

What is the Chenoa Fund?

The Chenoa Fund is a program that provides down payment assistance to borrowers who are seeking FHA loans.

It helps individuals with low to moderate income levels overcome the challenge of saving for a down payment, making homeownership more accessible and affordable.

Through this program, eligible borrowers can receive funds in the form of a second mortgage or grant, which can be used towards their down payment and closing costs.

Definition of Chenoa Fund

The Chenoa Fund is a program that provides assistance to low and moderate-income individuals and families who are looking to purchase a home.

Its main purpose is to help address the challenges faced by potential homeowners in meeting the down payment requirements of FHA loans.

The fund offers various types of assistance, including grants, second mortgages, and forgivable loans, which can be used towards down payment and closing costs.

By offering these resources, the Chenoa Fund aims to make homeownership more accessible for those with limited income.

Purpose of Chenoa Fund

Detailing the goal of increasing homeownership opportunities, Chenoa Fund is a program designed to provide affordable financing options for individuals and families.

By offering FHA loans with flexible income limits, the fund aims to assist those who may not qualify for conventional financing due to financial constraints.

Exploring how it addresses barriers to conventional financing, Chenoa Fund offers down payment assistance and second mortgage options.

This helps borrowers overcome obstacles such as high credit requirements or limited savings, enabling them to secure a home loan that suits their circumstances.

Highlighting the focus on underserved communities, Chenoa Fund specifically targets low-to-moderate-income households and areas that have historically faced challenges in obtaining homeownership.

The program strives to promote inclusive housing opportunities by providing accessible financial solutions tailored to meet the needs of these communities.

How does Chenoa Fund work?

Chenoa Fund provides down payment assistance programs that help homebuyers bridge the gap between their savings and the required down payment.

These programs offer a variety of options, including forgivable second mortgages and grants, to assist low- to moderate-income individuals in achieving homeownership.

Applicants must meet certain income limits determined by the Chenoa Fund. These limits ensure that the program is accessible to those who need it most.

Eligibility criteria also extend to creditworthiness, employment stability, and other factors assessed by lenders during the loan application process.

The Chenoa Fund offers different repayment options tailored to borrowers' financial circumstances. Repayment terms can vary but typically include affordable monthly payments over an extended period.

This flexibility aims to make homeownership sustainable for individuals with varying levels of income while adhering to FHA guidelines for loans supported by Chenoa Fund assistance.

Calculating Chenoa Fund Income Limits

By following these steps and considering factors such as household size and local AMI data, you can accurately calculate Chenoa Fund's income limits for your situation.

Step 1 - Determine household size

To calculate Chenoa Fund income limits, begin by determining the size of your household.

Understanding the definition of a household is essential when determining household size for Chenoa Fund income limits.

It includes all individuals living in the home and sharing expenses, whether they are dependents or non-dependents.

Step 2 - Identify household income sources

Next, identify all sources of household income. This can include wages, salaries, self-employment earnings, rental income, alimony or child support payments, and any other regular sources of funds.

Identifying primary income sources, such as employment, is the first step in determining household income for Chenoa Fund eligibility. This includes documenting wages and salaries earned from regular jobs.

Additionally, it's important to account for any additional income streams, such as investments or rental properties that could contribute to the overall household income.

When considering household income sources for Chenoa Fund eligibility, certain types of income need to be excluded. This includes government assistance like unemployment benefits or welfare payments.

It's crucial to focus on reliable and consistent sources of income that can sustain homeownership and meet the Chenoa Fund's requirements.

Step 3 - Consider local area median income

Consider the local area median income (AMI) for your specific location. Chenoa Fund uses AMI data to determine eligibility and establish income limits based on percentage thresholds.

Researching the local area median income (AMI) guidelines is a crucial step in determining your eligibility for Chenoa Fund income limits.

Understanding the specific AMI requirements for "adverse market" areas is equally important to ensure compliance.

Additionally, it's essential to determine if your location is subject to any special considerations that may impact your qualification.

Exceptions and Exemptions

Some individuals may qualify for exceptions to the Chenoa Fund income limits. These exceptions are typically granted in cases where there are extenuating circumstances such as unexpected medical expenses or job loss.

Additionally, certain exemptions from the income limits may be available for specific professions, such as teachers or military veterans, who contribute significantly to their communities.

It is important to thoroughly review the eligibility criteria and documentation requirements to determine if you qualify for any exceptions or exemptions before applying for a Chenoa Fund loan.

Exceptions to income limits

Qualifying as a military veteran opens up exceptions to income limits for the Chenoa Fund. This recognition acknowledges the unique financial circumstances faced by veterans and ensures they have equal access to homebuying opportunities.

Additionally, participating in certain targeted areas or underserved communities grants individuals exceptions from income limits. This provision aims to promote economic growth and housing accessibility in disadvantaged neighborhoods.

Lastly, meeting specific job requirements also qualifies applicants for exceptions to income limits, allowing individuals with specialized skills or high-demand occupations to take advantage of the Chenoa Fund program.

Exemptions from income limits

Having a disability that affects earning potential doesn't disqualify you from the Chenoa Fund program. The income limits are waived for individuals with disabilities, recognizing the unique challenges they face in generating income.

This exemption ensures that those with disabilities have equal access to affordable housing opportunities.

Senior citizens on a fixed income also qualify for an exemption from the Chenoa Fund income limits. Recognizing their limited financial resources, this exemption allows seniors to receive assistance through the program without facing unnecessary barriers based on their income level.

Individuals receiving public assistance can also benefit from an exemption from the Chenoa Fund's income limits. This recognizes that public assistance programs often provide minimal support and may not adequately address housing needs.

By exempting these individuals, access to affordable homeownership becomes more attainable, providing stability and independence.

By offering exemptions for those affected by disability or relying on fixed incomes or public assistance, the Chenoa Fund ensures that all individuals have equal opportunities to secure safe and affordable housing options despite limitations imposed by external circumstances.

Benefits of Chenoa Fund Income Limits

Expanded eligibility criteria, flexible income requirements, and improved access to financing are key factors that have contributed to increased homeownership opportunities.

With expanded eligibility criteria, more individuals can now qualify for home ownership assistance programs such as the Chenoa Fund.

Additionally, flexible income requirements allow a wider range of individuals to meet the necessary income qualifications.

Improved access to financing ensures that potential homeowners have better options when it comes to securing funding for their dream homes.

Qualification for down payment assistance

Specific income limits and guidelines are essential for qualifying for down payment assistance through the Chenoa Fund.

Low- to moderate-income borrowers have various options available to them, ensuring that homeownership remains within reach.

Additionally, the Chenoa Fund provides valuable assistance in meeting upfront costs such as down payments and closing fees, making it more feasible for individuals and families to purchase a home.

Access to affordable housing

Supporting sustainable homeownership is crucial in ensuring access to affordable housing.

By providing resources and education on financial planning, budgeting, and responsible homeownership practices, individuals can better navigate the process of purchasing a home and maintain long-term stability.

This support empowers potential homeowners to make informed decisions that align with their financial capabilities.

Reduced financial barriers play a significant role in improving access to affordable housing.

Programs such as down payment assistance and low-interest mortgage loans help bridge the gap between affordability and homeownership for individuals who may not have sufficient savings or meet traditional lending requirements.

These initiatives enable more people to enter the housing market, expanding opportunities for those who would otherwise struggle to afford suitable accommodation.

Promoting diverse communities contributes to enhancing access to affordable housing.

Encouraging mixed-income neighborhoods fosters economic integration, diversity, and social cohesion.

By implementing policies that prioritize inclusivity within urban planning strategies, cities can create spaces where individuals from various socioeconomic backgrounds can live harmoniously while having equal access to quality homes at reasonable prices.

Tips for Maximizing Chenoa Fund Income Limits

Consider contributing to retirement accounts or implementing tax planning strategies. By lowering your adjusted gross income, you may qualify for a higher loan amount.

Utilizing eligible deductions is another way to optimize Chenoa Fund income limits. Explore available tax credits and deductions that align with your financial situation. Deductible expenses such as mortgage interest and property taxes can help lower your overall taxable income.

Consulting with a mortgage professional is crucial when navigating Chenoa Fund income limits. An experienced advisor will assess your financial situation, guide you through the application process, and provide personalized recommendations tailored to maximize your eligibility for the program.

Strategies for reducing income

Increasing retirement contributions can be an effective strategy for reducing income. By contributing more to your retirement accounts, such as a 401(k) or IRA, you not only save for the future but also lower your taxable income in the present.

Utilizing flexible spending accounts is another way to reduce income. These accounts allow you to set aside pre-tax dollars for eligible expenses such as medical costs and dependent care. By taking advantage of this benefit, you can lower your taxable income and potentially save on taxes.

Another strategy is to maximize tax credits that are available to you. Tax credits directly reduce the amount of tax you owe, so they can significantly impact your overall tax liability. Researching and claiming all applicable tax credits can help lower your income and potentially increase your refund.

Remember that these strategies may have individual limitations or eligibility requirements, so it's always important to consult with a financial professional who can provide personalized advice based on your specific circumstances.

Utilizing eligible deductions

Claiming the mortgage interest deduction allows homeowners to reduce their taxable income, resulting in potential savings.

By keeping track of mortgage interest payments throughout the year and providing accurate documentation, individuals can take advantage of this deduction.

Maximizing student loan interest deductions is another way to lower taxable income.

Deductible amounts can be significant, so it's important for borrowers with eligible loans to utilize this deduction fully.

Leveraging child and dependent care expenses through applicable tax credits or deductions can also help reduce taxable income and provide financial relief for families managing these costs.

Note - The information provided here is intended as a general guide only. It's always recommended to consult with a qualified tax professional or accountant for personalized assistance based on your individual circumstances.

Consulting with a mortgage professional

Understanding the requirements of the Chenoa Fund program is crucial when consulting with a mortgage professional.

This unique financing option provides down payment assistance for low to moderate-income borrowers, but it comes with certain income limits and guidelines that need to be met.

By familiarizing yourself with these requirements, you can determine if the Chenoa Fund program is a suitable option for your specific financial situation.

In addition to exploring the Chenoa Fund program, it's important to consider alternative financing options when consulting with a mortgage professional.

They can provide valuable insights into other loan programs and grants that may better align with your needs and qualifications. By considering all available options, you increase your chances of finding the most beneficial financing solution.

When consulting with a mortgage professional, they will thoroughly review your credit history as part of their assessment process.

If there are any areas for improvement in terms of credit score or overall creditworthiness, they will provide guidance on how to address them effectively.

Enhancing your credit profile not only increases your chances of qualifying for favorable loan terms but also opens up more opportunities in securing better financing options.

By understanding Chenoa Fund program requirements, exploring alternative financing options, and reviewing and improving your credit history along with working closely alongside an experienced mortgage professional throughout this journey ensures that you make informed decisions while navigating through the complex world of mortgages.

Bottom Line

Understanding Chenoa Fund income limits is crucial for anyone considering the program.

These limits play a significant role in determining eligibility, as they set the maximum income thresholds that applicants must meet to qualify.

By familiarizing yourself with these limits, you can assess your eligibility and make informed decisions regarding your participation in the Chenoa Fund program.

In conclusion, understanding Chenoa Fund income limits is vital for prospective participants seeking down payment assistance and affordable homeownership opportunities.

These limits directly affect an applicant's eligibility for the program and can determine their access to financial support.

By recognizing this importance, individuals can navigate the application process effectively while maximizing their chances of qualifying for this valuable initiative.

With over 50 years of mortgage industry experience, we are here to help you achieve the American dream of owning a home. We strive to provide the best education before, during, and after you buy a home. Our advice is based on experience with Phil Ganz and Team closing over One billion dollars and helping countless families.

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