For many families in the U.S., the hardest part of buying a home is not the monthly mortgage—it’s saving enough money for the down payment. Even with an FHA loan, you still need at least 3.5% of the purchase price upfront. On a $300,000 home, that’s over $10,000—a big barrier for most first-time buyers.
The Chenoa Fund Program was created to solve this exact problem. Backed by CBC Mortgage Agency, the program provides Down Payment Assistance (DPA) so that buyers with steady income and reasonable credit can purchase a home sooner and with more confidence.
At Loan Factory, we specialize in helping buyers access programs like Chenoa Fund Down Payment Assistance—guiding you step by step so there’s no confusion, no hidden fees, and no wasted time.
What Is the Chenoa Fund Program?
The Chenoa Fund Program provides a second loan to cover your required FHA down payment. Depending on your situation, you can choose between:
- Forgivable Loan: No monthly payment, and it is completely forgiven after a set period (usually 3 years) of making your FHA mortgage payments on time.
- Repayable Loan: Paid back in affordable monthly installments, usually over 10 years, at a low interest rate.
In simple terms: Chenoa covers your FHA down payment so you don’t have to wait years to save enough cash.
Who Can Qualify for the Chenoa Fund Program?
You don’t need to be perfect financially to qualify. The program was designed for everyday families. General requirements include:
- Credit Score: Minimum 600 (some products require 620+)
- Debt-to-Income Ratio (DTI): Usually up to 45%, sometimes 50% with stronger credit
- Loan Type: Must use an FHA loan
- Home Type: Must be your primary residence (single-family, townhouse, or eligible condo)
- Income: No income limits for most products—middle-income families can qualify too
- First-Time Buyer? Not required—you can use Chenoa even if you’ve owned a home before
Example: How the Chenoa Fund Helps
Let’s say you want to buy a $250,000 home with an FHA loan:
- FHA requires a 3.5% down payment = $8,750.
- With the Chenoa Fund Program, that $8,750 is provided as assistance.
- Result: You can purchase the home without needing thousands saved upfront.
This is why Chenoa has become one of the most popular nationwide down payment assistance programs.
Benefits of the Chenoa Fund Program
- Eliminates the down payment hurdle so you can buy sooner
- Nationwide availability (except in New York)
- Forgivable option means you may never have to pay it back
- Flexible qualification standards—credit scores from 600+ accepted
- No income limits on most options
- Year-round funding—no waiting lists or “sold out” programs
Things to Keep in Mind
Like any financial product, the Chenoa Fund has details you should understand:
- If you refinance or sell your home before the forgiveness period ends, you may need to repay the assistance.
- FHA mortgage insurance premiums (MIP) still apply, which affect your monthly payment.
- Not all lenders are approved to offer Chenoa—you must go through an authorized lender.
That’s why it’s important to work with a professional mortgage brokerage like Loan Factory that has experience with Chenoa Fund loans.
Why Choose Loan Factory for the Chenoa Fund Program?
While many lenders can technically offer Chenoa, not all make the process easy to understand. At Loan Factory, we’ve built our system to make buying your home faster, clearer, and more affordable:
- AI-powered application: Fast pre-approvals and smart matching with programs like Chenoa.
- Instant comparison across 240+ lenders: Ensures you get the best rate and the right program.
- Transparency first: Zero junk fees, only real, required costs (appraisal, title, insurance).
- Personalized guidance: Local loan officers walk you through every step, so you never feel lost.
“At Loan Factory, we make sure first-time buyers feel confident, informed, and fully supported—from pre-approval to closing.” — Thuan Nguyen, CEO
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How to Get Started with the Chenoa Fund Program
- Check if you qualify – A Loan Factory advisor will review your credit, income, and FHA eligibility.
- Choose your assistance type – Forgivable or repayable second mortgage.
- Get pre-approved – Use Loan Factory’s AI-powered platform for fast results.
- Shop for your home – Confidently make offers knowing your down payment is covered.
- Close with ease – Loan Factory guides you through every detail until the keys are in your hands.
The Chenoa Fund Program is one of the most powerful tools available for buyers who are ready to own but don’t have enough saved for a down payment. With flexible terms, nationwide reach, and support for a wide range of credit scores, Chenoa helps families achieve the dream of homeownership.
And with Loan Factory by your side, you don’t just get access to the Chenoa Fund—you get a transparent, guided, and professional mortgage experience designed to save you time, money, and stress.
Don’t let the down payment stop you. Work with Loan Factory today and see how the Chenoa Fund Program can open the door to your new home.
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FAQs About the Chenoa Fund Program
