When buying a home, credit score is often one of the first factors lenders review. For buyers exploring down payment assistance (DPA), the Chenoa Fund program is known for being more flexible than many state or conventional programs.
So what is the minimum credit score for the Chenoa Fund, and how does it really compare to FHA, VA, USDA, and conventional loans ?
Let’s break it down clearly.
What Is the Minimum Credit Score for Chenoa Fund?
Most Chenoa Fund programs require a minimum FICO score of 600.
Here’s how the main Chenoa options typically work:
- Forgivable Second Mortgage
Minimum credit score: 600+
Forgiven after 36 consecutive on-time payments on the first mortgage.
- Repayable Second Mortgage
Minimum credit score: 600+
Repaid over 10 years, often at low or 0% interest (program-dependent).
- Rate Advantage Program
Minimum credit score: 600+
Additional requirement: household income ≤115% of Area Median Income (AMI).
While FHA guidelines allow scores as low as 580, most lenders approved to offer Chenoa Fund assistance set their own minimum at 600 or higher.
→ Read more: Chenoa Down Payment Assistance | Complete Guide to Chenoa Fund
Why Chenoa Fund Uses a 600 Credit Score Minimum
Chenoa’s credit threshold is intentional and serves a few key purposes:
A slightly higher bar than FHA’s 580 helps improve long-term loan performance.
Still reachable for moderate-credit buyers who don’t qualify for USDA or conventional loans.
Forgivable assistance requires borrowers to stay current for 36 months, making credit stability more important.
This is why Chenoa often lands in the “middle ground” between FHA and stricter programs.
Chenoa Fund vs Other Loan Programs (Credit Score Comparison)
Program | Typical Minimum Credit Score | Down Payment | Income Limits |
| Chenoa Fund (FHA + DPA) | 600 | 3.5% covered by Chenoa | None (except Rate Advantage ≤115% AMI) |
| FHA Loan (no DPA) | 580 (many lenders use 600) | 3.5% borrower funds | None |
| USDA Loan | ~640 | 0% | ≤115% AMI |
| VA Loan | ~620 (lender typical) | 0% | None |
| Conventional Loan | 620–640 | 3%–5% | May apply with DPA |
| State Housing DPA | 620+ (varies) | Grant or second loan | Usually 80%–120% AMI |
Key takeaway:
Chenoa’s 600 FICO minimum makes it more flexible than USDA or conventional loans, while still slightly stricter than FHA alone.
→ Read more: Chenoa Fund Rates Today | Compare Live FHA + DPA Rates
Pros and Cons of Chenoa’s Minimum Credit Score
Pros
- Easier credit standards than USDA or conventional loans
- Accessible for buyers rebuilding or stabilizing credit
- Opens the door to forgivable down payment assistance
Cons
- Higher minimum than FHA’s 580 baseline
- Some lenders apply stricter overlays (e.g. 620+)
- Forgiveness depends on 36 months of perfect payment history
Why Comparing Options Matters More Than Hitting 600
Reaching the Chenoa Fund minimum credit score is only one piece of the puzzle. Credit score alone doesn’t determine whether Chenoa is the best option for your situation.
That’s where side-by-side comparison matters.
Why Choose Loan Factory
Instead of pushing one loan or one assistance program, Loan Factory helps you compare Chenoa Fund, FHA, VA, USDA, conventional, and other DPA options across a massive lender network.
Why homebuyers work with Loan Factory:
- Best Price Guarantee: If Loan Factory can’t beat a competitor’s official offer, you may receive $1,000. Terms & Conditions apply.
- Zero application or junk fees
- Side-by-side comparison of 240+ wholesale lenders
- Local licensed loan advisors who explain trade-offs clearly
- AI-powered MOSO platform for faster scenario reviews and pricing
- Trusted guidance from Loan Factory, led by Thuan Nguyen (#1 Loan Officer in the U.S.)
Even if your credit score is right around 600, we help you evaluate whether Chenoa—or another program—creates the best long-term outcome.
Final Thoughts: Is 600 a Good Credit Score for Chenoa Fund?
The Chenoa Fund Down Payment Assistance minimum credit score of 600 strikes a practical balance. It’s higher than FHA’s baseline, but still far more flexible than USDA or conventional loans.
For many buyers, it unlocks access to down payment assistance that may be forgiven, making homeownership possible sooner.
Still, credit score is only part of the decision. Program structure, lender overlays, pricing, and long-term cost all matter—and that’s why comparison is key.
Next Steps
Apply online: www.LoanFactory.com/apply
Compare options & check rates: www.LoanFactory.com/quote
Set up a rate alert: www.loanfactory.com/mortgage-rate-alert
Talk to an advisor: (660) 333-3333
Based on real-world jumbo loan scenarios reviewed by Loan Factory’s lending team across multiple high-cost markets.
Disclaimer:
This content is for informational purposes only and is not a commitment to lend. Program availability, credit requirements, and terms depend on borrower profile, underwriting, and investor guidelines.
FAQs: Chenoa Fund Minimum Credit Score
