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 The Chenoa Fund Repayable Second Program may be a helpful option for eligible buyers who need down payment assistance and are comfortable with an additional second-mortgage payment. However, it is not the only path to homeownership, and it may not be the right fit for every borrower.
Loan Factory helps borrowers compare Chenoa Fund options alongside other mortgage programs and lender structures, so you can review the full picture before choosing.
Here is how Loan Factory helps:
Compare 240+ lenders and programs instead of relying on one down payment assistance option. Review Chenoa Fund alongside FHA, Conventional, VA, USDA, and other eligible mortgage options. Zero application or junk fees to get started. Tera AI technology helps speed up pricing, document review, and loan matching. Transparent side-by-side comparison of rate, payment, mortgage insurance, closing costs, lender credits, down payment assistance terms, and total loan structure. Local loan advisors can help review whether a repayable second mortgage, grant, forgivable assistance, gift funds, seller credits, lender credits, or another option may fit your situation. Guidance from Loan Factory, led by Thuan Nguyen, #1 Loan Officer in the U.S. Instead of choosing one program based only on the down payment help, Loan Factory helps you compare the full cost and structure: first mortgage, second mortgage payment, cash to close, monthly payment, mortgage insurance, credits, and long-term flexibility.
The Chenoa Fund Repayable Second Program may be a strong option for some eligible borrowers, especially if down payment help is the main need. But before moving forward, it is smart to compare it with other available options to see which structure better fits your payment comfort, cash-to-close goal, and long-term plan.
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FAQs: Chenoa Fund Repayable Second Program 
