What to Expect?
Up to 5% Assistance
Flexible Down Payment Support
Receive up to 5% in assistance that can be used toward your down payment, closing costs, and prepaid expenses, helping significantly reduce your upfront financial burden.
Apply
Apply
Chenoa Fund DPA
Get your keys - Skip the upfront burden
Up to 5% assistance, 0% interest options, and no income caps.
0% Interest
0% Interest
0% Interest
0% Interest
0% Interest
0% Interest
Chenoa Fund Guidelines
Simple guidelines designed to make homeownership more accessible.
Credit Score
A minimum credit score of 600 is required for all borrowers on the loan.
Eligible Property Types
1–2 unit homes, PUDs, townhomes, FHA condos & manufactured homes
Education
Homebuyer education is required for borrowers with scores below 640.
Employment
Self-employed borrowers must show recent proof of active income.
Loan Type
First mortgage must be an FHA loan under standard guidelines.
0% Interest Option
Forgivable Assistance
Choose a 0% interest forgivable option with no monthly payments, which can be fully forgiven after 36 consecutive on-time payments on your primary mortgage.
600 Minimum Credit Score
Easier Qualification
With a minimum credit score requirement of just 600, the program is designed to make homeownership accessible to more buyers compared to traditional loan options.
No Minimum Contribution
Low Out-of-Pocket Costs
No minimum borrower contribution means you may be able to purchase a home without needing significant personal savings for upfront costs.
No Income Limits
More Buyers Qualify
With no income restrictions, this program is accessible to a broader range of borrowers, making it easier for more people to qualify and achieve homeownership.
DPA Process
Application and Loan Registration
We initiate the FHA first mortgage and register the Chenoa second lien. Both the primary and secondary liens are included in the loan estimate.
Initial Disclosures, Appraisal, and Rate Lock
You sign the initial disclosures. We order the appraisal, and the loan is locked and simultaneously secured within the Chenoa system.
Underwriting
The first mortgage is fully underwritten, while key details are synced to the second lien for alignment. Any changes to the loan terms are reviewed, and updated disclosures are issued for one or both liens if required.
Closing & Funding
Both loans are finalized together, documents are signed, and funds are disbursed to complete the transaction.
Do's and Don'ts
Do
Confirm property eligibility upfront
Make sure the home type (SFR, condo, PUD, or eligible manufactured home) meets FHA and Chenoa guidelines before proceeding.
Plan how you’ll use the DPA funds
Strategically allocate the assistance toward down payment, closing costs, or prepaids to reduce out-of-pocket expenses.
Keep your loan scenario stable after disclosure
Changes in loan structure can trigger redisclosures for both first and second liens, potentially delaying closing.
Don't
Assume all DPA % are available
The 5% forgivable option isn’t available for FHA high-balance loans, so it’s important to check your eligibility early in the process.
Overlook occupancy-related restrictions
Certain scenarios (like manufactured homes) may limit the use of non-occupant co-borrowers in some cases.
Expect flexibility with lien restructuring early on
Second liens cannot be resubordinated until specific conditions (like 36 payments for repayable DPA) are met.
Chenoa vs State & FHA
See how the Chenoa Fund DPA stands out with flexible qualification, consistent funding, and built-in down payment assistance compared to traditional FHA loans and state-run programs.
Chenoa Fund DPA
Standard FHA Loan
State DPA Program
Down Payment Assistance
3.5% or 5%
Not included
Limited / varies
Property Ownership Allowed
Yes
Yes
Often restricted
Repayment Option
Yes (10-year second lien)
N/A
Yes (varies)
Credit Score
Min 600
580–620
620+ usually
Forgivable Option
Yes (after 36 payments)
No
Sometimes
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Frequently asked questions
You’ve got questions, we’ve got answers
Yes! You can use gift funds from family members or other eligible sources to cover your down payment and closing costs. However, lenders may require a gift letter confirming that the funds are a gift, not a loan. Some programs may also have limits on how much of your down payment can come from gift funds.
It depends on the option you choose:
Forgivable DPA: No payments and fully forgiven after 36 consecutive on-time payments
Repayable DPA: Paid back over 10 years with a low interest rate
Yes, the assistance can be used for down payment, closing costs, and prepaid expenses.
Yes, borrowers are allowed to own other properties and still be eligible for the program.
