By Kelsey TrumbullSep 4, 2018
One of the biggest reasons holding people back from becoming homeowners is lack of funds, specifically to cover the cost of a down payment on a loan. Luckily, there are several assistance programs available to help people in those financial situations become homeowners by covering the required down payment. If you’re in a tight financial situation, make this the year you become a homeowner by checking out the Chenoa Fund Program.
What is the Chenoa Fund Program?
The Chenoa Fund Program assists borrowers who lack funds by helping them finance the down payment requirement of an FHA loan, which is 3.5%. It essentially combines the ease of an FHA loan with a grant or second mortgage to cover the 3.5% down payment requirement, meaning you receive could receive up to 100% financing.
There are three different options to choose from based on your income. If your income is the same or less than 115% of your area median income, you might be eligible for a different program than if your income exceeds 115%. Let one of our Mortgage Loan Originators help you determine if and for what kind of assistance you may qualify.
Like any loan option, the Chenoa Fund does have a credit requirement. You must have a minimum of 620 FICO score and all additional FHA loan criteria must be met. In some instances, a non-occupant co-borrower is allowed.
As a homebuyer, you should research and discuss with your lender all the possible loan and program options available to you. If you’re thinking an FHA loan might be right for you, talk with your lender about the Chenoa Fund Program. Being unable to fulfill a down payment requirement is no longer a reason to stall your dreams of becoming a homeowner.
For more information about this program, other loan options, or the homebuying process, contact one of our licensed Mortgage Loan Originators. If you are ready to begin the process, click here to get started!
Proceeds from the financing can only be used for down payment. Closing costs and prepaid items are the responsibility of the borrower and must be paid by other FHA eligible sources. Please visit http://chenoafund.org/ for more information.
These blogs are for informational purposes only. Make sure you understand the features associated with the loan program you choose, and that it meets your unique financial needs. Subject to Debt-to-Income and Underwriting requirements. This is not a credit decision or a commitment to lend. Eligibility is subject to completion of an application and verification of home ownership, occupancy, title, income, employment, credit, home value, collateral, and underwriting requirements. Not all programs are available in all areas. Offers may vary and are subject to change at any time without notice. Should you have any questions about the information provided, please contact us.