Chenoa Fund FHA Down Payment Assistance - Forgivable

What is Chenoa Fund FHA Down Payment Assistance - Forgivable?

Chenoa Fund FHA Down Payment Assistance - Forgivable is a forgivable loan for homebuyers in Texas.

• The Chenoa Fund Forgivable program, administered by CBC Mortgage Agency, provides up to 3.5% of the home purchase price as a second mortgage at 0% interest with no required monthly payments. The DPA is forgiven after 36 consecutive on-time payments on the FHA first mortgage. There are no income limits and first-time buyer status is not required.
• No income limit.
• No first-time buyer requirement.
• 0% interest on DPA.
• No monthly payment on DPA.
• 36 on-time payments triggers forgiveness.
• Perpetual funding.
• Funding comes from Nonprofit.

How much assistance does it provide?

Chenoa Fund FHA Down Payment Assistance - Forgivable provides assistance worth 3.5% of the purchase price, as set by the program.

• 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 Down Payment Assistance - Forgivable is forgiven after 3 years, so a buyer who stays that long does not repay it.

• Repayment is triggered by Sale, Refinance, No Longer Primary, and Late Payment Reset.
• The assistance is recorded in 2nd Lien 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 Down Payment Assistance - Forgivable is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

Chenoa Fund FHA Down Payment Assistance - Forgivable sets its income limit as follows: No income limits.

• 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 Down Payment Assistance - Forgivable can be used for Single-family.

• New construction is eligible.

Where does it apply?

Chenoa Fund FHA Down Payment Assistance - Forgivable serves buyers purchasing anywhere in Texas.

How do you apply?

Applications for Chenoa Fund FHA Down Payment Assistance - Forgivable go through the administering agency, which publishes the current terms and the application steps on its own site.

1. 1

   Take a homebuyer education course

   Required by the program before funds are reserved.

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved with the provider and are subject to availability.

3. 3

   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.