The post Do You Make Too Much for Down Payment Assistance? appeared first on CBC Mortgage Agency.

Recently, we heard from a young couple in their mid-30s who were looking to buy their first home and thought they had done everything right. Both had steady jobs, solid credit scores, and careful spending habits. Every month, they paid their rent on time and even managed to set aside a little savings.  

When they finally met with a lender, they were thrilled to learn they qualified for a mortgage. Then came the surprise—they didn’t have the upfront cash. Between the down payment, closing costs, and prepaid expenses, the total was overwhelming.  

“We can afford the monthly payment,” they told us. “We just can’t get over that first hurdle.” 

Their story isn’t unusual. For many would-be buyers, the dream of homeownership doesn’t stall because of income or credit. It stalls because saving a large lump sum can feel nearly impossible when you’re already paying rent, student loans, and everyday expenses. And that’s where down payment assistance may come in (for qualified applicants).  

What Is Down Payment Assistance? 

Down payment assistance, often called DPA, is financial support that helps qualified homebuyers cover the upfront costs of purchasing a home. That typically includes the down payment as well as closing costs and prepaid expenses, like taxes and insurance. 

Depending on the program, DPA may be structured as a second loan or other form of financing that works alongside the primary mortgage, making it easier for borrowers to move forward without having to save the full lump sum on their own. 

Many DPA programs are funded through federal, state, or local government appropriations. While these programs serve an important purpose, they can be subject to funding interruptions, geographic limitations, and income caps tied to Area Median Income (AMI). However, CBC Mortgage Agency (CBCMA) operates differently. 

The Potential Advantages of Being Privately Funded  

At CBCMA, we’ve built a national, privately funded DPA program through the Chenoa Fund that’s designed to expand access to homeownership while supporting lenders with a stable, streamlined solution. 

Unlike programs that rely on government funds, our program is funded through private capital. This structure allows us to: 

• Operate nationally (except New York) 

• Maintain consistent guidelines in all markets 

• Remain available to lenders and borrowers when publicly funded programs are paused 

Because our program is privately funded, borrowers have reliable access to assistance—even during periods of uncertainty. For lenders, that translates into smoother pipelines and fewer disruptions. 

No Income Limits 

One of the most common questions we hear is, “Do I make too much money to qualify for down payment assistance?” 

It’s true that many traditional DPA programs cap eligibility based on Area Median Income (AMI). Borrowers who earn more than that threshold—even if they have student loan debt or limited savings—may not qualify.  

But not CBCMA. We don’t impose AMI restrictions, which means we can help:  

• Young professionals with strong income but limited savings  

• College graduates managing student debt  

• Established wage earners who lack sufficient upfront funds 

By removing AMI caps, we help expand access to homeownership for borrowers who are financially capable but simply cash-constrained. 

To further support borrowers, we also provide homebuyer counseling through a HUD-approved counseling agency at no additional cost. This includes: 

• Pre-purchase homebuyer education to help buyers understand budgeting, credit, and the mortgage process.  

• Post-closing homebuyer support for 18 months to encourage long-term financial stability and sustainable homeownership. 

By providing access to professional housing counselors, we help ensure borrowers are prepared not just to buy a home—but to successfully keep it. 

Designed With Lenders In Mind 

Some lenders may hesitate to offer DPA because they’ve heard it can delay closings and create extra paperwork at the last minute. Many state and local assistance programs do require lenders to navigate different guidelines, shifting requirements, administrative steps, and multiple income calculations, which can bog down the process. 

At CBCMA, we intentionally structured our DPA to avoid those challenges. Our program features streamlined internal processes, uniform guidelines nationwide, and limited overlays beyond standard loan requirements. This structure helps reduce confusion and improve efficiency throughout the transaction lifecycle. 

Because we do not originate loans, our entire focus is working alongside lenders, brokers, and real estate professionals to reduce their administrative burden and create smoother closings. For lenders, that means more time to concentrate on underwriting quality, compliance, and delivering exceptional borrower service. 

FHA Loans and DPA 

Another common misconception is that FHA loans paired with DPA automatically create closing delays. This belief often stems from past experiences with inconsistent DPA programs, or misunderstandings about how DPA works within FHA guidelines. 

The reality is that DPA programs can work seamlessly with FHA financing—when they are properly structured and clearly understood. The key is education and clear communication throughout the process. 

That’s why we work to increase awareness among loan officers, real estate agents, first-time homebuyers, and community organizations by sharing accurate information about FHA requirements, documentation, and credit standards. When everyone understands how DPA works alongside FHA financing, the process may move forward more smoothly and efficiently. 

National Partnerships That Strengthen Access 

Industry collaboration plays a central role in expanding sustainable homeownership. For example, CBCMA works with the National Association of Hispanic Real Estate Professionals to support DPA education, outreach, and shared best practices that expand awareness and access to responsible home financing solutions. 

By working alongside trusted industry partners, we’re helping to create more pathways to homeownership, especially for borrowers who have the income and credit to qualify but need support overcoming upfront cost barriers. 

If you’re a lender looking for a reliable, nationwide DPA solution built for scalability, we invite you to learn more about how CBCMA can support your goals.   

FAQs About The Chenoa Fund Down Payment Assistance Program 

How does the Chenoa Fund DPA program differ from other programs? 

The Chenoa Fund is a nationwide (except NY) DPA program funded through private capital rather than federal, state, or local appropriations, which allows us to operate without interruptions tied to government budget cycles. For lenders, that means greater stability, uniform guidelines, and a more predictable pipeline. 

Are there Area Median Income (AMI) limits lenders need to calculate? 

No. Our program does not impose AMI caps, so there’s no income threshold calculations to make. This simplifies eligibility review and reduces administrative complexity for underwriting teams. 

What additional overlays does the Chenoa Fund program have? 

We aim to minimize overlays beyond standard FHA requirements. Our guidelines are designed to integrate efficiently with established underwriting processes, allowing lenders to avoid unnecessary operational friction while maintaining compliance and risk controls. 

Can my borrower use the Chenoa Fund program with an FHA loan? 

Yes, our down payment assistance program may be combined with FHA financing. We also provide guidance and educational resources to help lenders navigate documentation, compliance, and timing requirements to support efficient closings. 

What support do you provide for lenders and their teams? 

We offer education, training resources, and operational guidance to help lenders and their staff understand eligibility, documentation, and process expectations. Our goal is to streamline execution and reduce uncertainty at every stage of the transaction. 

How does your program help lenders expand their borrower base? 

Because our program removes AMI restrictions and is privately funded, lenders can serve qualified borrowers who may otherwise be excluded from traditional DPA programs. This helps lenders expand their reach to underserved borrowers while maintaining sound underwriting practices. 

The post Privately Funded Down Payment Assistance for Lenders & Buyers appeared first on CBC Mortgage Agency.

Solving these challenges requires more than short-term fixes. While ideas like extended loan terms address current market needs, true progress depends on advancing sustainable homeownership. That involves expanding housing supply, investing in borrower education, and lowering upfront barriers through responsible down payment assistance, so that first-time buyers can enter the market sooner without increasing long-term financial risk.  

The goal isn’t just access. It’s supporting responsible homeownership opportunities that create lasting outcomes for first-time buyers and the communities they serve, which aligns closely with our mission at CBC Mortgage Agency. 

First-Time Buyers Need More Support 

According to a recent article in Mortgage Professional America, mortgage leaders – including CBC Mortgage Agency President, Miki Adams– are increasingly recognizing that sustainable affordability rather than short-term relief is essential to bringing first-time buyers back into the market. That includes expanded housing supply options, such as greater flexibility for entry-level and manufactured housing development, as well as government policies that address construction costs, zoning challenges, and housing availability.  

But as she told the reporter, first-time buyers also need knowledge, flexibility, and stronger partnerships across the housing ecosystem, so they fully understand their options and can navigate an increasingly complex market without taking on unnecessary long-term risk.  

The most effective strategies for accomplishing this are responsible down payment assistance programs, which lower upfront barriers to homeownership without increasing long-term risk, and comprehensive borrower education, which improves the financial readiness and decision-making of first-time buyers.  

Addressing Affordability and Supply Constraints  

Temporary affordability measures, such as longer loan terms, might help first-time buyers by reducing their monthly payments in the short term. However, they do not address the underlying drivers of housing affordability. In some cases, they may introduce additional risk by extending a homebuyer’s debt obligations without reducing the overall cost of a home. 

Affordability challenges are not solely financial, however. Limited housing supply, particularly at entry-level price points, remains a critical constraint for first-time buyers nationwide. Recently, industry discussions have focused on increasing manufactured housing and other housing options as part of the solution. When supported by appropriate policy frameworks and financing structures, these housing types can expand access to affordable homeownership while maintaining quality and stability.  

For lenders and housing partners, understanding how these options fit within responsible financing programs is key to serving first-time buyers more effectively.  

What Sustainable Homeownership is About 

As industry leaders continue to examine solutions for first-time buyers, one principle remains consistent: expanding access must go hand in hand with sustainability. A sustainable approach to homeownership focuses on creating pathways to homeownership that are both accessible and enduring.  

This philosophy is central to CBC Mortgage Agency’s role in the housing finance ecosystem. But all lenders and housing professionals can promote sustainable homeownership in several ways.  

Strengthen DPA Program Awareness – Identify and become familiar with all available down payment assistance programs in your area, so you can better support qualified borrowers who may lack upfront resources. 

Emphasize Education and Guidance – Borrower education is a critical component of long-term success, so be willing to spend time and share resources that help first-time buyers navigate both the mortgage process and the responsibilities of homeownership. 

Be Willing to Collaborate – For lenders and brokers, partnering with housing agencies, policymakers, and community organizations on initiatives such as first-time buyer workshops and expanded housing options is essential to addressing affordability at scale.  

Solving the affordability challenges facing today’s first-time buyers requires a holistic approach that includes responsible program design, collaboration, and long-term thinking. By staying focused on these priorities, we can all help more first-time buyers achieve lasting homeownership, while strengthening the housing market as a whole.  

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FAQs 

How does down payment assistance support sustainable homeownership? 

When structured responsibly, down payment assistance may help qualified buyers overcome upfront cost barriers while preserving long-term affordability and borrower stability.  The Chenoa Fund Down Payment Assistance Program offered by CBC Mortgage Agency are self-funded and do not rely on taxpayer dollars to support expanded access to homeownership. 

How does CBC Mortgage Agency contribute to first-time buyer solutions? 

CBC Mortgage Agency supports responsible homeownership by partnering with lenders and housing organizations to expand access through sustainable financing and education-focused programs. Through the Chenoa Fund program, CBC Mortgage Agency offers repayable, non-forgivable down payment assistance paired with FHA loans as well as first-time homebuyer education before and after closing. 

Who may qualify for down payment assistance through the Chenoa Fund Program?   

The Chenoa Fund program is available nationwide (except New York) and serves buyers purchasing a primary residence who meet credit, income, and underwriting requirements. Both first-time and repeat buyers may qualify depending on the specific program guidelines. 

The post Advancing Sustainable Homeownership for First-Time Buyers appeared first on CBC Mortgage Agency.

Clients will now find the following:

Purchase Conditions: A tab for any deficiencies that must be cleared prior to CBC Mortgage Agency purchasing the first lien. 

Post Purchase Conditions: A new tab for any deficiencies that need to be cleared for investors or any items post purchase for CBC Mortgage Agency. If items are in this tab before CBC Mortgage Agency has purchased the loan, they do not need to be cleared prior to purchase.

Servicing: A new tab where a copy of the goodbye letter for the transfer of the first lien to CBC Mortgage Agency may be found.

QC Conditions: Any deficiencies found in a quality control audit that need to be cleared. 

A training video on this new process is available in the micro training section of the Client Access Portal. Please note you will only be able to access the training if you have a login to CAP. 

If you have any questions on this new process, please contact Director of Operations, Dianah Hart, dianah.hart@chenoafund.org or Purchase Clearing team, purchaseclearing@chenoafund.org.

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Tax amounts that are due within thirty (30) days of the Purchase Date must be paid by the Seller with evidence of the tax payment provided to CBCMA. 

This announcement affects the following sections in the Seller Guide: 

6.12 | Real Estate Taxes Due the Following Month After Loan Purchase 

All tax amounts that are due and payable at closing must be paid at closing. If taxes are due and the tax bill has not been released, the Settlement Statement must show monies held for later payment by the title company/closing attorney. Documentation must be included in the loan file when submitted for purchase. 

Tax amounts that are due within thirty (30) days of the Purchase Date must be paid by the Seller with evidence of the tax payment provided to CBCMA. 

All policy changes and updates are referenced below in the appropriate section of the Correspondent Seller Guide. These policy changes apply to everyone using the Chenoa Fund down payment assistance program and are effective beginning 12/15/2025, unless otherwise noted. 

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In 2025, the path to homeownership remains a cornerstone of the American Dream but is fraught with challenges due to rising costs and economic pressures. However, through strategic partnerships, innovative mortgage products, and robust educational initiatives, organizations like CBC Mortgage Agency (CBCMA) and Guild Mortgage are working to make homeownership more accessible. 

CBC Mortgage Agency and Guild Mortgage, along with their community partners, are playing a critical role by sponsoring Homebuyer Readiness Fairs around the country. 

Challenges Facing Homebuyers in Today’s Market 

The U.S. housing market in 2025 continues to present significant hurdles for aspiring homeowners. Soaring home prices, outpacing income growth, have drastically reduced affordability, particularly for first-time buyers. High mortgage interest rates, increased monthly payments, and a persistent housing shortage limits inventory. These challenges make it difficult for many, especially low- to moderate-income and minority households, to enter the housing market.   

Homebuyer Readiness Fairs: Impacting One City At a Time 

To address these barriers, CBC Mortgage Agency has partnered with Guild Mortgage, community leaders, and local groups to launch the Future Homebuyer Initiative, a nationwide series of Homebuyer Readiness Fairs. The initiatives kicked off with a free event on July 19, 2025, in Columbia, South Carolina, at the Brookland Baptist Church’s Community Resource Center in partnership of Mayor Daniel J. Rickenmann of Columbia. These fairs aim to demystify the homebuying process, and offer educational workshops, one-on-one consultations with housing professionals, and on-site mortgage pre-qualifications for qualified attendees who bring income documentation, bank statements, and a photo ID. Note, consumers are not obligated to bring any verification documents to attend the workshop or apply for a loan. 

The agenda includes sessions on financial literacy, credit readiness, private mortgage insurance, and downpayment assistance programs like CBC Mortgage Agency’s Chenoa Fund, led by industry professionals, such as Guild Mortgage Senior Vice President Nora Guerra and CBCMA Corporate Account Director Christopher Johnson. These events provide critical knowledge about mortgage options, homebuying basics, and local real estate markets, empowering attendees to navigate the complex journey to homeownership with confidence. 

Over 300 South Carolinians registered for the first Homebuyer Readiness Fair, and the results were impressive: over 60 clients began exploring the homebuying process, with approximately 40 attendees enrolled in HUD prepurchase counseling, 11 appointments were set with loan officers and 5 homebuyers pre-qualified for loans on the spot!  

The sponsors will continue to educate potential homebuyers by sponsoring ongoing financial literacy events every other month at the Brookland Baptist Church’s Community Resource Center.                           

The Role of Down Payment Assistance and Other Solutions 

Down payment assistance (DPA) programs are a cornerstone of efforts to make homeownership attainable, particularly for those struggling with upfront costs. CBC Mortgage Agency’s Chenoa Fund DPA program, for example, has helped 50,000 families—many of whom are first-time, minority, or low-income buyers—by offering repayable and forgivable second mortgages to qualified applicants to cover down payments and closing costs. These programs help reduce the initial financial barrier, enabling qualified buyers to secure homes sooner and potentially build equity. According to Urban Institute research nearly 90% of DPA programs function as direct cash transfers with minimal cost to borrowers, making them highly accessible. 

The mortgage industry is also exploring other solutions, such as low- or no-interest loans and employer-assisted housing programs, and shared equity products to responsibly support buyers. These tools collectively address affordability challenges, particularly in high-cost areas, and help creditworthy individuals achieve sustainable homeownership. 

The Importance of Homebuyer Education 

Education is vital for ensuring long-term homeownership success. Homebuyer Readiness Fairs and programs like those offered by CBC Mortgage Agency and its partner, Money Management International (a HUD-approved housing counseling agency), provide comprehensive training on the homebuying process, mortgage options (e.g., FHA, VA, USDA, or conventional loans), and the responsibilities of ownership, such as maintenance and property tax management. For borrowers with lower credit scores, these courses are often mandatory to qualify for DPA, offering over a year of post-purchase support to prevent foreclosure. Research shows that educated buyers are more mortgage-ready, make informed decisions, and are less likely to face financial distress, fostering economic equality and stronger communities.  

Just listen to South Carolina attendee Judy explain what the Homebuying Fair meant to her: by learning about the homebuying process and about various housing programs and products, she realized that homeownership is something she can attain.  

Future events 

The next Homebuyer Readiness Fair will be held Saturday, September 13 in Houston, TX at 1183 Brittmoore Road, Suite 150, Houston, TX 77043. For additional information, click here. Additional events will be held around the country in 2025-26. 

Working Together to Help Future Homebuyers 

In 2025, homebuyers face formidable challenges, from high prices and interest rates to limited inventory and economic uncertainty. However, through initiatives like the Future Homebuyer Initiative, CBC Mortgage Agency and Guild Mortgage are addressing these barriers head-on. Homebuyer Readiness Fairs provide essential education, while downpayment assistance, and other mortgage solutions offer practical financial support. By combining these efforts with comprehensive homebuyer education, the industry is paving a viable path to homeownership, empowering individuals and families to build wealth and stability in an increasingly challenging market. 

We welcome stakeholder participation in future Homebuyer Readiness Fairs. Please reach out to representatives from CBC Mortgage Agency with questions or suggestions about future events! 

Contact us! 

CBC Mortgage Agency and Guild Mortgage are separate entities and are not affiliated.  

CBC Mortgage Agency, NMLS ID # 1186381 (for licensing information, go to: www.nmlsconsumeracccess.org); Arizona Mortgage Banker License # BK-2001540; Licensed by the Department of Financial Protection and Innovation under the California Residential Mortgage Lending Act; Illinois Residential Mortgage License #MB.6761292. Illinois Department of Financial and Professional Regulation, Division of Banking, 555 W. Monroe St., Suite 500, Chicago, IL 60661 – 1-888-473-4858. The Chenoa Fund program is not currently offered in New York. 

The post CBCMA & Guild Mortgage Launch Homeownership Program appeared first on CBC Mortgage Agency.

CBC Mortgage Agency is excited to announce our participation at MBA ANNUAL25, taking place October 19–22, 2025, in Las Vegas, NV. We invite you to schedule a meeting with us to learn more about the Chenoa Fund — our down payment assistance program that helps homebuyers achieve the dream of homeownership.

Whether you’re a lender, partner, or industry professional, we’d love to connect. Click here to request a meeting during the event!

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Join CBC Mortgage Agency at NAHREP at AVANCE Global in San Diego! Visit our booth to explore our down payment assistance program, Chenoa Fund that has empowered more than 50,000 homebuyers on their path to homeownership. Click below to schedule a meeting with us or stop by to learn how we can support your goals to increase homeownership in the Latino community.

Schedule A Meeting Here

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