Buying a home in the U.S. often comes with one of the biggest challenges: saving enough for the down payment. That’s where Chenoa Down Payment Assistance —also known as the Chenoa Fund—steps in.
Backed by CBC Mortgage Agency, the Chenoa Fund program provides flexible solutions for borrowers who qualify for FHA loans but need help covering the 3.5% down payment. Whether you’re a first-time buyer or not, this program can make homeownership more accessible.
What Is the Chenoa Fund? What Is the Chenoa Fund? The Chenoa Fund Down Payment Assistance Program provides a second mortgage to cover part—or all—of your required down payment. Depending on your eligibility, this second loan may either:
Be repayable with fixed monthly payments, or Be forgivable after a set period of on-time payments on your first mortgage. Unlike many state-level assistance programs, Chenoa is available nationwide (except in New York), with funding available year-round. That means you don’t have to worry about the program “running out of money.”
Who Qualifies for Chenoa Down Payment Assistance? To take advantage of the program, borrowers generally need to meet the following requirements:
Requirement Details Credit Score Minimum 600 (some products may require 620+) Debt-to-Income (DTI) Typically up to 45%; in some cases 50% with stronger credit Loan Type Primarily FHA loans (some conventional options may be available through approved lenders) Home Type Must be a primary residence (single-family, condo, or townhouse) Income Limits No income limits for most programs; certain products (like Rate Advantage) may set restrictions Homebuyer Education Required in some cases—especially for lower-credit borrowers Approved Lender You must work with a lender authorized by Chenoa Fund
Types of Chenoa Assistance Programs Chenoa Fund offers several program options to fit different borrower profiles:
- Forgivable Second Mortgage 0% interest, no monthly payment Fully forgiven after a set number of on-time payments (usually 36 months) - Repayable Second Mortgage Fixed term (often 10 years) Monthly payments required at a low interest rate - Rate Advantage Program Competitive interest rates on the first mortgage May have stricter eligibility (credit and income caps) Key Benefits of Chenoa Down Payment Assistance Benefits of Chenoa Down Payment Assistance Lower upfront costs: Helps you buy a home without draining your savings. Flexible repayment options: Choose forgivable or repayable assistance. Accessible credit standards: Eligible with credit scores starting at 600. No income limits on most products: Many middle-income buyers qualify. Consistent funding: Unlike many state programs, Chenoa doesn’t “pause” when funds run out. Homebuyer support: Education and post-purchase resources help ensure long-term success. Things to Consider Before Applying If you sell or refinance before your forgivable loan term ends, you may need to repay the assistance. Not every lender participates—you’ll need an approved Chenoa Fund lender. FHA mortgage insurance premiums (MIP) still apply, which affect your monthly payment. Requirements can vary slightly by state and lender, so double-check local rules. How to Apply for Chenoa Fund Assistance How to Apply for Chenoa Fund Assistance Here’s a step-by-step guide to getting started:
Find an Approved Lender – Only certain lenders are authorized to offer Chenoa Fund programs. Check Eligibility – Review your credit score, income, and DTI ratio with your loan officer. Complete Homebuyer Education (if required) – HUD-approved counseling helps prepare you for homeownership. Choose a Program – Decide between forgivable or repayable second mortgage options. Submit Your Loan Application – Your lender will handle both the FHA mortgage and the Chenoa Fund second mortgage. Close on Your Home – Use the down payment assistance to meet FHA’s minimum 3.5% requirement. → Read more: FHA Home Loan
Why Homebuyers Choose Chenoa Fund Unlike many down payment assistance programs tied to income limits or local funding caps, Chenoa Down Payment Assistance offers more flexibility and nationwide access.
It’s particularly attractive for:
Borrowers with decent but not perfect credit Families who earn too much for other DPA programs Buyers who need help with upfront costs but can handle monthly mortgage payments As CBC Mortgage Agency puts it: “Chenoa Fund empowers creditworthy families to overcome the barrier of down payments and achieve sustainable homeownership.”
Why Choose Loan Factory At Loan Factory, we make programs like Chenoa Down Payment Assistance simple, transparent, and stress-free.
When you work with us, you get more than just access to 240+ wholesale lenders—you also get:
AI-powered applications that speed up approvals and match you with the best-fit program. Direct access to Chenoa Fund and other top assistance programs nationwide. Instant rate comparison across hundreds of lenders, ensuring you never overpay. Local loan officers + personal guidance, so you feel confident every step of the way. “At Loan Factory, we make sure first-time buyers feel confident, informed, and fully supported—from pre-approval to closing.” — Thuan Nguyen, CEO
If the down payment is the only thing standing between you and your dream home, the Chenoa Fund could be your solution. And with Loan Factory by your side, the process is faster, easier, and 100% transparent.
Set up your free consultation today to see how Chenoa Down Payment Assistance and Loan Factory can help you become a homeowner sooner.
Get Started with Loan Factory
Loan Factory Reviews FAQs About Chenoa Down Payment Assistance 
