Combining the goal of Home Ownership With The Tools to Finance It…
Home ownership isn’t for everyone—but housing is. While we have minimum credit scores that may put some borrowers out of the reach of our direct assistance, we believe that throught assisting credit worthy families to overcome the down payment assistance barrier, we can reduce the competition for “shelter” housing, which in turn helps to reduce its cost and increase its availability for those we cannot assist directly.
Down Payment of 3.5% from Chenoa Fund
- 115% of area median income =down payment assistance paid back through a monthly payment
- 115% or less of area median income= down payment assistance can be forgivable
Simply Requirements for FHA Loan
- No equality share or recapture provisions
- No income or geographic restrictions
- No first time home buyer
- Minimum 620 credit score
Chenoa Fund is a affordable housing program provided through CBS Mortgage Agency (CBCMA), a uniquely created and organized government institution. CBCMA specialized in providing down payment assistance solutions in conjunction with FHA loans, with a focus on providing funding for affordable housing opportunities in communities nationwide.
Assisting Under-Represented Markets
- lower income
Qualifications for Borrower
- Credit= Borrowers must have a minimum FICO score of 620.
- DTI Ratio= maximum DTI per AU findings or manual underwriting guidelines found in Mortgagee Letter 2014-02 and 4000.1. The required monthly payments underboth the FHA-insured first mortgage and the second mortgage, plus other housing expenses and all recurring charges, cannot exceed the borrower household’s reasonable ability to pay.
- Disclosure= The source, amount, and repayment terms of the secondary financing MUST be disclosed in the first mortgage application, and the borrowers must acknowledge that they understand and agree to the terms.
- After the loan Closes= Correspondent uploads the credit file and closing packages (including the Collateral Package) into the Client Portal. To login to the Client Portal, you will need to contact us for credentials.
First Mortgage loans must be a fixed rate and conform to standard FHA guidelines. No ARM loans are acceptable. All first mortgages must be issued by or sold to CBC Mortgage Agency and conform to CBC Mortgage Agency investor guidelines.
The second mortgage can be up to 3.5% of the sales price or appraised value, whichever is less. The combined loan to value cannot exceed the amount of the first mortgage (including any financed mortgage insurance premiums) plus the required 3.5% down payment.
Borrower Fees on Second Mortgage
The only fees chargeable to the borrower in conjunction with the secondary financing are pre-paid interest, recording fees for the Trust Deed, reasonable title closing fees, and a courier fee to return the signed documents to the Lender.
Fees for Second Mortgage
Loan Originators may not charge any fees in conjunction with the second mortgage other than a reasonable document preparation fee.
Chenoa Fund is available in the following areas/cities
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