CBC Mortgage Chenoa Fund - FHA Forgivable DPA
CBC Mortgage Chenoa Fund - FHA Forgivable DPA
Program Category
Down Payment Programs
Max Amount
Up to $34,250
5% of Purchase Price
5% of Purchase Price
Agency Website
Contact Info
Information Team 866-563-3507
info@chenoafund.org
info@chenoafund.org
Program Details
Buyer contribution type
None
Income calc method
First mortgage types
FHA 203(b),FHA 234(c)
First mortgage terms
Fully Amortizing,Fixed Rate,30-year
Property types
Single Family Detached, Condo, Townhome/PUD, Manufactured Home
Repayment triggers
Sale of the home
Change of occupancy
Refinance
Payoff of 1st mortgage
Transfer of title
Loan Forgiveness
Fully
Program Guide
Lending Guide/Matrix:
https://chenoafund.org/lender/program-guidelines/Announcements:
https://chenoafund.org/lender/announcements/Limitations
Loan must conform to and comply with all applicable HUD and FHA underwriting, lending, selling, and servicing requirements, as well as all Ginnie Mae requirements for the inclusion of the mortgaged loan in a Ginnie Mae MBS pool.
High Cost loans are not permitted. All first mortgages must adhere to QM/ATR Compliance. Mortgage loans exceeding the QM 3% max points/fees test are not permitted unless cures are applied. Bona fide discount points must adhere to CFPB and any/all state regulations.
Manual Underwriting was suspended October 16, 2023.
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Escrow Holdbacks -
Exception requests for escrow holdbacks will be considered for weather-related repairs only (cannot be completed prior to close due to inclement weather). Prior approval is not required when conditions outlined in Correspondent Lending Guide Section 7.16.
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Deed Restrictions -
Deed restrictions allowed per FHA 4000.1 are permissible; however, easements and deed restrictions that affect marketability must be reviewed and approved by CBCMA to be eligible for purchase, unless the easement or deed restriction expires upon foreclosure (requests for review should be submitted to scenariodesk@chenoafund.org)
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Additional Properties Owned: Allowed, but a Letter of Explanation (LOE) is required to explain the motivation to keep current residence while purchasing new. An acceptable reason must be documented for the move, along with the intent behind retaining the current property. Occupancy reasonability must be documented and a QC review may be applied to the transaction. If new residence puts the borrower’s commute at an additional distance of 30 minutes to place of employment, Chenoa expects this to be referenced in the LOE.
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Present Housing Expense & Verification - Must adhere to the Correspondent Lending Guide.
High Cost loans are not permitted. All first mortgages must adhere to QM/ATR Compliance. Mortgage loans exceeding the QM 3% max points/fees test are not permitted unless cures are applied. Bona fide discount points must adhere to CFPB and any/all state regulations.
Manual Underwriting was suspended October 16, 2023.
_______________________________________________________________
Escrow Holdbacks -
Exception requests for escrow holdbacks will be considered for weather-related repairs only (cannot be completed prior to close due to inclement weather). Prior approval is not required when conditions outlined in Correspondent Lending Guide Section 7.16.
_______________________________________________________________
Deed Restrictions -
Deed restrictions allowed per FHA 4000.1 are permissible; however, easements and deed restrictions that affect marketability must be reviewed and approved by CBCMA to be eligible for purchase, unless the easement or deed restriction expires upon foreclosure (requests for review should be submitted to scenariodesk@chenoafund.org)
_______________________________________________________________
Additional Properties Owned: Allowed, but a Letter of Explanation (LOE) is required to explain the motivation to keep current residence while purchasing new. An acceptable reason must be documented for the move, along with the intent behind retaining the current property. Occupancy reasonability must be documented and a QC review may be applied to the transaction. If new residence puts the borrower’s commute at an additional distance of 30 minutes to place of employment, Chenoa expects this to be referenced in the LOE.
_________________________________________________________________
Present Housing Expense & Verification - Must adhere to the Correspondent Lending Guide.
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