Chenoa Fund FHA Rate Advantage (Forgivable 3.5%)

What is Chenoa Fund FHA Rate Advantage (Forgivable 3.5%)?

Chenoa Fund FHA Rate Advantage (Forgivable 3.5%) is a forgivable loan for homebuyers in California.

• 3.5% of purchase price as forgivable second mortgage on FHA loans. Forgiven after 36 on-time monthly payments on the first mortgage (3 years). Higher first mortgage rate offset by DPA benefit. Min 620 FICO. No income limits. Statewide CA.
• Up to 3.5% of purchase price in assistance.
• loan forgiven after required occupancy.
• Funding comes from Private/Non-profit.

How much assistance does it provide?

Chenoa Fund FHA Rate Advantage (Forgivable 3.5%) provides assistance worth 3.5% of the purchase price, as set by the program.

• The program asks buyers to contribute 1% of purchase price (borrower minimum).
• The program can be combined with other assistance, subject to the rules of each.
• Amounts are the program's published maximums, not an offer — the administering agency determines any individual award.

Do you have to pay it back?

Chenoa Fund FHA Rate Advantage (Forgivable 3.5%) is forgiven after 3 years, so a buyer who stays that long does not repay it.

• Repayment is triggered by Forgiven after 36 months of on-time payments. Income at or below 115% AMI.
• The assistance is recorded in Second position.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

Chenoa Fund FHA Rate Advantage (Forgivable 3.5%) is open to buyers who will live in the home as their primary residence.

What are the income limits?

Chenoa Fund FHA Rate Advantage (Forgivable 3.5%) sets its income limit as follows: Contact program provider for current income limits.

• The limit applies to total household income, not only the borrower’s.
• The program lists a maximum household size of 8.
• Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

What kind of home can it be used for?

Chenoa Fund FHA Rate Advantage (Forgivable 3.5%) caps the purchase price as follows: Contact program for current purchase price limits.

• Eligible property types include Single-family (1-4 unit), FHA-approved condominium, townhome/PUD.
• New construction is eligible.
• Manufactured homes are not eligible.

Where does it apply?

Chenoa Fund FHA Rate Advantage (Forgivable 3.5%) serves buyers purchasing anywhere in California.

How do you apply?

Applications for Chenoa Fund FHA Rate Advantage (Forgivable 3.5%) go through the administering agency, which publishes the current terms and the application steps on its own site.

1. 1

   Contact the administering agency to reserve funds

   Funds are reserved through Contact provider directly; subject to funding availability, and are subject to availability.

2. 2

   Work with a lender who handles the program

   Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.