Chenoa Fund in 2026: FHA Down Payment Assistance Through CBC Mortgage Agency

Chenoa Fund is one of the most widely available DPA programs in the country because it operates at the national level rather than being limited to a single state. It provides a second lien for down payment assistance layered directly on an FHA first mortgage, accessible through any Chenoa-approved lender.

How Chenoa Fund Works

Chenoa provides either a 3.5% or 5% second lien. The 3.5% option covers the FHA minimum down payment in full. The 5% option covers the down payment and assists with closing costs. The first lien is a standard FHA loan originated by an approved Chenoa lender. The second lien is funded and serviced by CBC Mortgage Agency, which operates under the Utah Housing Corporation charter.

Repayment and Forgiveness Options

• ✦Soft second (repayable): a 30-year second mortgage at 0% interest with no monthly payment; due in full on sale, refinance, or payoff of the first
• ✦Repayable 10-year: 10-year term with a defined monthly payment at a specified interest rate
• ✦Forgivable option: for borrowers at or below 115% AMI; balance forgiven after 36 months of on-time payments on the first mortgage; no sale or refi allowed during the 36-month window without repayment

Qualification Requirements

FICO minimum is 620 for most Chenoa products; some require 640. DTI can go up to 50% depending on AUS findings. There is no income cap for the repayable second options; the income cap of 115% AMI applies only to the forgivable program. First-time homebuyer status is required for the forgivable program but not always required for the repayable second. HUD-approved homebuyer education is required before closing.

Geographic Availability

Chenoa Fund is available in most states. New York, New Jersey, and a small number of other states restrict or prohibit certain DPA structures that would affect Chenoa's program. Availability should be confirmed for the specific state at the time of application, as program rules and state-level restrictions can change. Access Chenoa through their approved lender list rather than attempting to use an unapproved lender.