Saving for a down payment is one of the hardest parts of buying a home. The Chenoa Fund Repayable Second Program, offered by CBC Mortgage Agency , is designed to help borrowers cover the FHA-required 3.5% down payment through a second mortgage that must be repaid.
Here’s everything you need to know about this program, how it works, and why comparing it with other options is essential.
What Is the Chenoa Fund Repayable Second Program? The Repayable Second Program is one of Chenoa’s down payment assistance (DPA) options. Instead of giving a grant or forgivable loan, it provides a second mortgage that helps cover the down payment.
Loan Amount: Typically 3.5%–5% of the home’s purchase price. Repayment Terms: Either a low-interest or zero-interest second mortgage. Monthly Obligation: Borrowers will make payments in addition to their primary FHA mortgage. Term Length: Often 10 years, with interest rates aligned to the first mortgage (per CBC guidelines). This makes homeownership accessible without years of saving, but it also adds responsibility.
Who Qualifies for the Repayable Second Program? Based on Chenoa Fund guidelines, eligibility usually requires:
Credit Score: At least 600 FICO. Debt-to-Income Ratio (DTI): Generally capped at 45%–50%. Property Type: FHA-approved homes only; must be primary residence. Occupancy: Borrower must move in within 60 days. Loan Pairing: Must be combined with an FHA first mortgage. Education: Some borrowers may be required to complete HUD-approved counseling. → Read more: Chenoa Fund Minimum Credit Score: Requirements & DPA Comparison
Pros and Cons of the Chenoa Fund Repayable Second Program Pros Covers the entire 3.5% FHA down payment. Accessible to buyers who don’t meet income limits of state programs. Can be used in multiple states. May offer low or no interest depending on terms. Cons Unlike forgivable options, you must repay the loan. Adds a second monthly payment, raising your housing costs. Not offered nationwide (restricted in some states like New York). Not HUD/FHA-endorsed, though federally recognized. Alternatives to the Repayable Second Program If you’d prefer not to take on another payment, consider:
Chenoa Forgivable Second Program – Debt is erased after 36 months of on-time payments. State Housing Finance Agencies (HFAs) – Often provide grants or forgivable assistance but with income caps USDA Loans – 0% down, for eligible rural/suburban buyers.VA Loans – 0% down for veterans, service members, and surviving spouses.→ Explore: Chenoa Fund Down Payment Assistance
Chenoa Fund vs Loan Factory While the Chenoa Fund Repayable Second Program provides much-needed help, it’s not always the best long-term solution. At Loan Factory, we go further:
Best Price Guarantee: If we can’t beat a competitor’s official offer, we’ll pay you $1,000. Terms & Conditions Zero Junk Fees: No application or hidden fees. 240+ Lender Access: Instantly compare FHA lenders, Chenoa, and alternatives. AI-Powered Platform (MOSO): Faster approvals and real-time pricing. Trusted Guidance: Backed by Thuan Nguyen, America’s #1 Loan Officer. Instead of locking into a single DPA program, Loan Factory shows you all your options side by side.
The Chenoa Fund Repayable Second Program can be a great option if you need down payment help but don’t mind an additional monthly payment. However, it’s not always the cheapest or most flexible choice.
That’s why it pays to compare with Loan Factory, where you’ll see Chenoa side by side with 240+ lenders and programs—with no junk fees and a $1,000 Best Price Guarantee.
→ Read more: Top Loan Officers Near Me: Get Local Help
FAQs: Chenoa Fund Repayable Second Program 
