{"id":6165,"date":"2023-09-05T17:21:34","date_gmt":"2023-09-05T17:21:34","guid":{"rendered":"https:\/\/chenoafund.org\/?page_id=6165"},"modified":"2026-04-08T22:36:17","modified_gmt":"2026-04-08T22:36:17","slug":"homebuyer-faq","status":"publish","type":"page","link":"https:\/\/chenoafund.org\/homebuyer\/homebuyer-faq\/","title":{"rendered":"Homebuyer FAQ"},"content":{"rendered":"[vc_row type=”full_width_background” full_screen_row_position=”middle” column_margin=”default” column_direction=”default” column_direction_tablet=”default” column_direction_phone=”default” bg_image=”6111″ bg_image_type=”default” bg_position=”center center” background_image_loading=”default” bg_repeat=”no-repeat” scene_position=”center” top_padding=”5%” constrain_group_1=”yes” bottom_padding=”5%” text_color=”light” text_align=”left” row_border_radius=”none” row_border_radius_applies=”bg” row_position_desktop=”default” row_position_tablet=”inherit” row_position_phone=”inherit” overflow=”visible” id=”home” enable_gradient=”true” color_overlay=”#10188e” color_overlay_2=”#5530e8″ overlay_strength=”0.8″ gradient_direction=”left_to_right” enable_shape_divider=”true” shape_divider_position=”bottom” shape_divider_height=”10%” bg_image_animation=”none” parallax_bg=”true” parallax_bg_speed=”fast” gradient_type=”default” shape_type=”fan”][vc_column column_padding=”no-extra-padding” column_padding_tablet=”inherit” column_padding_phone=”inherit” column_padding_position=”all” flex_gap_desktop=”10px” column_element_direction_desktop=”default” column_element_spacing=”default” centered_text=”true” desktop_text_alignment=”default” tablet_text_alignment=”default” phone_text_alignment=”default” background_color_opacity=”1″ background_hover_color_opacity=”1″ column_backdrop_filter=”none” column_shadow=”none” column_border_radius=”none” column_link_target=”_self” column_position=”default” gradient_direction=”left_to_right” overlay_strength=”0.3″ width=”1\/1″ tablet_width_inherit=”default” animation_type=”default” bg_image_animation=”none” border_type=”simple” column_border_width=”none” column_border_style=”solid”][vc_column_text css=”.vc_custom_1694540059985{margin-bottom: 35px !important;}”]\n

Homebuyer Frequently Asked Questions<\/h1>\n[\/vc_column_text][\/vc_column][\/vc_row][vc_row type=”full_width_background” full_screen_row_position=”middle” column_margin=”default” column_direction=”default” column_direction_tablet=”default” column_direction_phone=”default” bg_color=”#ffffff” scene_position=”center” top_padding=”3%” bottom_padding=”4%” text_color=”dark” text_align=”left” row_border_radius=”none” row_border_radius_applies=”bg” row_position_desktop=”default” row_position_tablet=”inherit” row_position_phone=”inherit” overflow=”visible” overlay_strength=”0.5″ gradient_direction=”left_to_right” shape_divider_position=”bottom” bg_image_animation=”none” gradient_type=”default” shape_type=””][vc_column column_padding=”no-extra-padding” column_padding_tablet=”inherit” column_padding_phone=”inherit” column_padding_position=”all” flex_gap_desktop=”10px” column_element_direction_desktop=”default” column_element_spacing=”default” desktop_text_alignment=”default” tablet_text_alignment=”default” phone_text_alignment=”default” background_color_opacity=”1″ background_hover_color_opacity=”1″ column_backdrop_filter=”none” column_shadow=”none” column_border_radius=”none” column_link_target=”_self” column_position=”default” gradient_direction=”left_to_right” overlay_strength=”0.3″ width=”1\/1″ tablet_width_inherit=”default” animation_type=”default” bg_image_animation=”none” border_type=”simple” column_border_width=”none” column_border_style=”solid”][vc_row_inner column_margin=”default” column_direction=”default” column_direction_tablet=”default” column_direction_phone=”default” text_align=”left” row_position=”default” row_position_tablet=”inherit” row_position_phone=”inherit” overflow=”visible” pointer_events=”all”][vc_column_inner column_padding=”no-extra-padding” column_padding_tablet=”inherit” column_padding_phone=”inherit” column_padding_position=”all” flex_gap_desktop=”10px” column_element_direction_desktop=”default” column_element_spacing=”default” desktop_text_alignment=”default” tablet_text_alignment=”default” phone_text_alignment=”default” background_color_opacity=”1″ background_hover_color_opacity=”1″ column_backdrop_filter=”none” column_shadow=”none” column_border_radius=”none” column_link_target=”_self” overflow=”visible” gradient_direction=”left_to_right” overlay_strength=”0.3″ width=”1\/12″ tablet_width_inherit=”default” animation_type=”default” enable_animation=”true” animation=”fade-in-from-bottom” animation_easing=”default” bg_image_animation=”none” border_type=”simple” column_border_width=”none” column_border_style=”solid” column_padding_type=”default” gradient_type=”default”][\/vc_column_inner][vc_column_inner column_padding=”no-extra-padding” column_padding_tablet=”inherit” column_padding_phone=”inherit” column_padding_position=”all” flex_gap_desktop=”10px” column_element_direction_desktop=”default” column_element_spacing=”default” desktop_text_alignment=”default” tablet_text_alignment=”default” phone_text_alignment=”default” background_color_opacity=”1″ background_hover_color_opacity=”1″ column_backdrop_filter=”none” column_shadow=”none” column_border_radius=”none” column_link_target=”_self” overflow=”visible” gradient_direction=”left_to_right” overlay_strength=”0.3″ width=”5\/6″ tablet_width_inherit=”default” animation_type=”default” enable_animation=”true” animation=”fade-in-from-bottom” animation_easing=”default” bg_image_animation=”none” border_type=”simple” column_border_width=”none” column_border_style=”solid” column_padding_type=”default” gradient_type=”default”][vc_custom_heading text=”The following are commonly asked questions regarding Chenoa Fund\u00ae, a national down payment assistance program provided through CBC Mortgage Agency, an FHA-approved, federally chartered governmental agency.” font_container=”tag:h3|text_align:center” use_theme_fonts=”yes” css_animation=”none” css=”” link=”url:https%3A%2F%2Fchenoafund.org%2F|title:down%20payment%20assistance”][nectar_cta btn_style=”text-reveal-wave” heading_tag=”h6″ link_type=”regular” button_color=”accent-color” button_color_hover=”#10188e” text_color=”#ffffff” text_color_hover=”#ffffff” button_border_color=”#10188e” button_border_color_hover=”#10188e” button_border_thickness=”0px” alignment=”center” alignment_tablet=”default” alignment_phone=”default” constrain_group_3=”yes” constrain_group_4=”yes” display=”block” display_tablet=”inherit” display_phone=”inherit” icon_family=”none” link_text=”Get Started” margin_top=”5vh” padding_top=”15″ padding_bottom=”15″ padding_left=”15″ padding_right=”15″ url=”\/affordable-housing\/”][\/vc_column_inner][vc_column_inner column_padding=”no-extra-padding” column_padding_tablet=”inherit” column_padding_phone=”inherit” column_padding_position=”all” flex_gap_desktop=”10px” column_element_direction_desktop=”default” column_element_spacing=”default” desktop_text_alignment=”default” tablet_text_alignment=”default” phone_text_alignment=”default” background_color_opacity=”1″ background_hover_color_opacity=”1″ column_backdrop_filter=”none” column_shadow=”none” column_border_radius=”none” column_link_target=”_self” overflow=”visible” gradient_direction=”left_to_right” overlay_strength=”0.3″ width=”1\/12″ tablet_width_inherit=”default” animation_type=”default” bg_image_animation=”none” border_type=”simple” column_border_width=”none” column_border_style=”solid” column_padding_type=”default” gradient_type=”default”][\/vc_column_inner][\/vc_row_inner][\/vc_column][\/vc_row][vc_row type=”full_width_background” full_screen_row_position=”middle” column_margin=”default” column_direction=”default” column_direction_tablet=”default” column_direction_phone=”default” bg_color=”#f7f7f7″ scene_position=”center” top_padding=”2%” bottom_padding=”4%” text_color=”dark” text_align=”left” row_border_radius=”none” row_border_radius_applies=”bg” row_position_desktop=”default” row_position_tablet=”inherit” row_position_phone=”inherit” overflow=”visible” overlay_strength=”0.3″ gradient_direction=”left_to_right” enable_shape_divider=”true” shape_divider_color=”#5530e8″ shape_divider_position=”bottom” bg_image_animation=”none” gradient_type=”default” shape_type=”fan”][vc_column column_padding=”no-extra-padding” column_padding_tablet=”inherit” column_padding_phone=”inherit” column_padding_position=”all” flex_gap_desktop=”10px” column_element_direction_desktop=”default” column_element_spacing=”default” desktop_text_alignment=”default” tablet_text_alignment=”default” phone_text_alignment=”default” background_color_opacity=”1″ background_hover_color_opacity=”1″ column_backdrop_filter=”none” column_shadow=”none” column_border_radius=”none” column_link_target=”_self” column_position=”default” gradient_direction=”left_to_right” overlay_strength=”0.3″ width=”1\/1″ tablet_width_inherit=”default” animation_type=”default” bg_image_animation=”none” border_type=”simple” column_border_width=”none” column_border_style=”solid”][toggles style=”minimal”][toggle color=”Default” heading_tag=”default” heading_tag_functionality=”default” title=”What is the Chenoa Fund\u00ae?”][vc_column_text css=”” text_direction=”default”]Chenoa Fund\u00ae is a national down payment assistance<\/a> program provided by CBC Mortgage Agency, a federally chartered governmental entity. The Chenoa Fund\u00ae program is designed to increase access to homeownership for creditworthy families.<\/p>\n

At CBC Mortgage Agency, it\u2019s our core belief that everyone in America deserves access to affordable housing and it\u2019s our mission to help make that happen. We provide tools that open the doors to home ownership for individuals who have the income and credit history to afford a home but may lack the ability to accumulate a down payment. CBC Mortgage Agency partners with reputable mortgage lenders on a correspondent basis to provide down payment assistance for qualified homebuyers in the form of second mortgages.<\/p>\n

Homeownership isn\u2019t for everyone\u2014but housing is. While we have minimum credit scores and debt-to-income ratio restrictions that may put some borrowers out of the reach of our direct assistance, we believe that we can reduce the competition for rental housing by assisting creditworthy families to overcome barriers, which in turn helps to reduce the cost of renting and increase its availability for those we cannot assist directly.<\/p>\n

The Chenoa Fund\u00ae program has served the U.S. first-time homebuyer market in a significant way, having completed thousands of mortgage transactions since 2013.[\/vc_column_text][\/toggle][toggle color=”Default” heading_tag=”default” heading_tag_functionality=”default” title=”How does the Chenoa Fund\u00ae help buyers overcome the barrier of homeownership?”][vc_column_text css=”” text_direction=”default”]Under the Chenoa Fund\u00ae program, buyers who meet our eligibility criteria may receive a second mortgage to cover their 3.5% minimum down payment requirement when purchasing an FHA-insured home or the 3% minimum down payment required on a FNMA conventional loan. We believe that by helping responsible homebuyers meet that minimum investment required for a mortgage we create healthier communities by improving the balance between homeownership and other housing types.[\/vc_column_text][\/toggle][toggle color=”Default” heading_tag=”default” heading_tag_functionality=”default” title=”Why can\u2019t people just save for a down payment and wait to buy?”][vc_column_text css=”” text_direction=”default”]Most first time buyers manage to purchase a home by saving for a down payment over a period of years, or perhaps by receiving gifts from parents or other family members. But increasing home prices and stagnant or low wages can make this process difficult, and many Americans lack the earning power to reach that home buying mark. As a result, they have no way to break into homeownership and reap its economic benefits for themselves and for their children.<\/p>\n

Studies reveal that many would-be buyers have the income and credit history to qualify for a loan but they lack sufficient savings for a down payment. This barrier is often the most significant economic obstacle for families seeking to transition from renting to sustainable homeownership, and the consistent availability of down payment assistance programs can make all the difference for more U.S. families.<\/p>\n

Homeownership rates have decreased over the last ten years and this decline was most dramatic among minority households, millennials, and single-parent households. The need for down payment assistance is greater than ever.<\/p>\n

We believe in helping people buy now (if they credit qualify) so they can begin building up equity today.[\/vc_column_text][\/toggle][toggle color=”Default” heading_tag=”default” heading_tag_functionality=”default” title=”Is down-payment assistance a responsible option for homeownership?”][vc_column_text css=”” text_direction=”default”]In a 2017 survey taken by the Urban Institute and the Federal Reserve1<\/sup>, 53% of renters stated that they continued to rent because of their inability to afford a down payment.<\/p>\n

Another Urban Institute survey, conducted with Fannie Mae, reports that down payment assistance and lower down payment mortgages have become increasingly critical to the health of the housing market. Minorities are especially in need of assistance, as many do not have family who can help them buy their first home. Without assistance, most will not become homeowners.<\/p>\n

Chenoa Fund\u00ae is a down payment assistance program provided by CBC Mortgage Agency. Under this program, buyers who meet certain eligibility criteria may receive a second mortgage to cover the minimum down payment requirement when purchasing an FHA-insured or FNMA conventional loan. By helping homebuyers responsibly meet that minimum investment required for a mortgage, we create healthier communities by improving the balance between homeownership and other housing types. Homeownership is the number one creator of household wealth.<\/p>\n

CBC Mortgage Agency is accountable to FHA. FHA has strict guidelines under which down payment assistance<\/a> programs are administered. CBC Mortgage Agency carefully reviews every loan to ensure borrower success. All borrowers receive post-purchase counseling to ensure the transition to homeownership is successful.<\/p>\n

1<\/sup> NCSHA Blog: Urban Institute Report Touts Importance of HFA Down Payment Assistance Programs, November 17, 2017[\/vc_column_text][\/toggle][toggle color=”Default” heading_tag=”default” heading_tag_functionality=”default” title=”Can you provide an overview of the Chenoa Fund\u00ae products?”][vc_column_text css=”” text_direction=”default”]The Chenoa Fund\u00ae program includes several second lien products that are issued in conjunction with first mortgages that are FHA-insured.<\/p>\n

Chenoa Fund\u00ae down payment assistance<\/a> second liens may be used in conjunction with an FHA-insured first mortgage lien so long as the first mortgage adheres to applicable underwriting guidelines. Down payment assistance paired with an FHA mortgage has an option of 3.5% or 5% of the lower of the purchase price or appraised value.[\/vc_column_text][\/toggle][toggle color=”Default” heading_tag=”default” heading_tag_functionality=”default” title=”Does Chenoa Fund\u00ae provide homebuyer education\/counseling?”][vc_column_text css=”” text_direction=”default”]A leading non-profit homebuyer counseling agency based in Houston, TX, known as Money Management International (welcome.moneymanagement.org) works closely with CBC Mortgage Agency on a QA and Homebuyer Education initiative. Money Management International (MMI) provides financial education for first-time homebuyers receiving Chenoa Fund\u2122 down payment assistance<\/a> to ensure that new homeowners understand the importance of making their mortgage payments on time. This education component is part of an overall lending strategy developed by MMI to help CBC Mortgage Agency\u2019s borrowers sustain homeownership while simultaneously improving loan performance measures in an effort to maintain the financial soundness of the FHA insurance program.<\/p>\n

The MMI\/CBC Mortgage Agency outreach and education program engages all new CBC Mortgage Agency homeowners each month during the first eighteen months of homeownership. Each homeowner receives financial advice targeted to their specific needs from a HUD-approved nonprofit housing counselor with the goal of helping them make their mortgage payments on time. The counselor will also teach customers how to build a budget, save money for home repairs, and other steps needed to maintain responsible homeownership.<\/p>\n

MMI also may counsel with borrowers with a credit score lower than 640 prior to purchase to ensure they are prepared for the challenges of homeownership. Borrowers with a credit score lower than 620 are required to take an education course through MMI prior to closing.[\/vc_column_text][\/toggle][toggle color=”Default” heading_tag=”default” heading_tag_functionality=”default” title=”Are there social benefits that come from owning a home?”][vc_column_text css=”” text_direction=”default”]Yes. In 2017 the National Association of Realtors1<\/sup> released a study entitled, \u201cSocial Benefits of Homeownership and Stable Housing.\u201d The findings revealed that:<\/p>\n