CEDAR CITY, Utah, June 7, 2018 /PRNewswire/ -- In a significant expansion of its offerings for homebuyers, CBC Mortgage Agency (CBCMA) has launched a program that provides eligible borrowers with a conventional loan coupled with a low-interest second mortgage that can be used to cover down payment and closing costs.
Known as the Chenoa Fund Conventional Loan Program, the initiative is a 3.5% second mortgage, which can be used for closing costs and the 3% down payment requirement for 97% LTV conventional mortgage financing. This assistance is offered through Fannie Mae's HomeReady program for low to moderate income borrowers, with expanded eligibility for homes in low-income communities. For those borrowers who do not fit the HomeReady criteria but may not have the resources for a larger down payment on a home purchase, CBCMA offers Fannie Mae's Standard 97% loan-to-value program.
The borrower receives a market competitive interest rate on the first mortgage. The Down Payment Assistance is repaid over 10 years through an affordable second, priced at 8%.
Chenoa Fund is an affordable housing program funded by CBCMA, a federally chartered government agency. CBCMA's mission is to increase affordable and sustainable homeownership, specifically for credit-worthy, low- and moderate-income individuals. CBCMA specializes in providing financing for loans under the guidelines of FHA and Fannie Mae and partners with quality mortgage lenders on a correspondent basis.
How does a borrower qualify for the Chenoa Fund HomeReady program?
To qualify for the Chenoa Fund Conventional Loan Program, borrowers must meet program criteria, including:
- A minimum FICO of 640
- No income limits in low-income census tracts, 100% of area median income (AMI) for all other properties
- There are no income limits under the Standard 97% LTV program
Why was the Chenoa Fund Conventional Loan Program created?
Homeownership isn't for everyone — but housing is. By helping credit-worthy families overcome barriers and buy homes, our program reduces competition for rental housing, thereby decreasing its cost and increasing its availability for families who don't qualify for our direct assistance.
Other Chenoa Fund Down Payment Assistance Programs
CBCMA has long been known for its unique down payment assistance programs for borrowers receiving an FHA first mortgage. Offerings include:
Chenoa Fund Edge Program: With this program, borrowers receive a 30-year term, 0% rate, no payment second mortgage. Borrowers must meet a minimum FICO score of 620 and report a qualifying income that is equal to or below 115% of the median income for the county in which they will live. The loan is forgiven once the borrower makes 36 consecutive on-time payments on the original FHA first mortgage.
Chenoa Fund Repayable Second Program: This program carries no income restrictions and offers two options for a repayable second mortgage – a 10-year repayable second at 0% interest rate or a 30-year repayable second at 5% interest rate. Borrowers must meet a minimum FICO score of 620.
Chenoa Fund Rate Advantage Program: This alternative allows borrowers to lock in their first mortgage at a market comparable rate. Borrowers must meet a minimum FICO score of 620, have a debt-to-income ratio of 50% or less, and have a qualifying income equal to or less than 115% of the median income for the county in which they will live. The down payment assistance is repaid over a 10-year period at 8%.
CBC Mortgage Agency
SOURCE CBC Mortgage Agency