High Five for 5% Down Payment Assistance!

September 15, 2020

CBC Mortgage Agency is excited to announce an expansion to Chenoa Fund! Starting September 15th, we are now allowing borrowers to receive 5% down payment assistance through our Rate Advantage product. Buyers, sellers, and lenders, let out a cheer! The current, crazy market is a seller’s market for sure, which can be very difficult for borrowers who need seller concessions in order to purchase a home. To help meet this need, we added 1.5% to the amount of DPA offered by our Rate Advantage program—which can go a long way to cover closing costs. This enables more borrowers get into homes, helps more sellers sell their homes, and gives lenders one more tool to serve low- to medium-income borrowers.


5% Down Payment Assistance through the Rate Advantage product?


You read that right! Borrowers can now choose between two different down payment assistance amounts when they pair our Rate Advantage product with an FHA loan: 5% or 3.5%. Other than the assistance amount, the only difference between a 5% DPA Rate Advantage product and a 3.5% DPA Rate Advantage product is the interest rate on the first mortgage (click here to go to our rates page). Since 5% down payment assistance is an expansion of the Rate Advantage product, not a new product, everything else is identical between a 5% DPA Rate Advantage loan and a 3.5% DPA Rate Advantage loan.


Is this assistance only for the down payment?


No, it is not. Any amount of the 5% down payment assistance offered through the Rate Advantage product can apply towards the down payment, closing costs, or prepaid items, or any combination of the three.


What are the requirements for the Rate Advantage product?


Chenoa Fund offers very market-competitive requirements for the Rate Advantage product:

  1. 640 FICO or higher
  2. 50% DTI or less
  3. Qualifying income equal to or less than 135% of the area median income for the home you will live in

Rate Advantage down payment assistance loans are available in all states except for New York.


Do I need to be a first-time homebuyer, and will I need homeownership education?


No to both questions!


How do I find a lender that offers Chenoa Fund?


Ask your loan officer if your lender offers Chenoa Fund! You can also reach out to info@chenoafund.org to request a list of lenders in your area that offer Chenoa Fund.


How can I learn more?


Email info@chenoafund.org with any questions you have.    


The post High Five for 5% Down Payment Assistance! appeared first on Chenoa Fund - Down Payment Assistance.

CBC Mortgage Agency
NMLS: 1186381
912 W. Baxter Drive, Suite 150
South Jordan, Utah 84095

Main: 866-563-3507
Servicing: 866-563-7572
Fax: 435-237-0022
NMLS 1186381. CBC Mortgage Agency is not affiliated with or acting on behalf of the FHA, VA, or USDA. CBC Mortgage Agency provides down payment assistance and does not originate mortgage loans. This site is for information purposes and is used by licensed industry professionals. The site and the information contained therein is not a solicitation to lend money to consumers. 

For licensing information, go to: www.nmlsconsumeraccess.org.
Licensees must also post their license number and the address and telephone number of the Commissioner: Illinois Department of Financial and Professional Regulation, Division of Banking, 100 West Randolph, 9th Floor, Chicago, IL 60601 1-888-473-4858. Georgia Residential Mortgage Licensee, License # 1186381