The Chenoa Fund is proving to be a big hit in Atlanta, where it is providing individuals and families with opportunities to qualify for mortgage loans and become homeowners. Aspiring homebuyers who have good credit records but a lack of down payment funds are finding help from the Chenoa Fund, in the form of flexible down payment assistance solutions. These solutions enable the individuals to qualify for Federal Housing Administration loans and realize their dreams of homeownership.
What Is The Chenoa Fund?
The Chenoa Fund is an affordable housing program offered by the Cedar Band Corporation Mortgage Agency, a housing finance authority approved by the Department of Housing and Urban Development as a Title II Government Lender. Its purpose is to create sustainable opportunities for home ownership for people with good credit but no money saved up for a down payment. In its capacity as a federally chartered government agency, the Chenoa Fund allows lenders to offer an assistance program that isn’t bound by state or local regulations, helping them to meet the housing needs of undeserved populations.
The CBC Mortgage Agency created the Chenoa Fund, to enable lenders to help their borrowers meet the minimum 3.5% down payment required for them to qualify for an FHA loan. To qualify for assistance from the Chenoa Fund, an individual must have a credit score of at least 620. There are no first-time homebuyer restrictions, no restrictions based on income or geographic location, and no equity share or recapture provisions.
The Chenoa Fund provides the 3.5% down payment mandated by the FHA. For borrowers with 115% or less of the median income for their area, the down payment assistance may be forgivable. For those whose income exceeds this limit, the down payment assistance is paid back in affordable monthly installments.
How The Chenoa Fund is Helping People
The Chenoa Fund provides direct assistance to individuals and families for whom the lack of a down payment is the only barrier between them and homeownership. Rather than waiting years to save up for a down payment, or tapping into other necessary savings, such as retirement or college funds, the fund enables qualified individuals to enter into the purchasing process. Underserved communities like minorities, millennials, and low-income earners can use the Chenoa Fund to make homeownership attainable.
There are also downstream effects from Chenoa Fund assistance. By making home ownership reachable for those who have the credit rating but not the cash on hand, the Chenoa Fund reduces competition for shelter housing and other low-income housing programs, reducing the costs and increasing the availability of such programs for those who need them.
Home Buying Help for Atlanta And Beyond
The Chenoa Fund is a flexible, public-purpose driven program. It can bring home ownership within reach of countless potential buyers who have demonstrated themselves to be responsible with their credit, but who have been unable to save up the significant sums of cash required to make a down payment on a house.
Home buyers who seek housing in Atlanta and elsewhere are benefiting from lenders that offer down payment assistance programs backed by the Chenoa Fund. By turning individuals with the means to sustain mortgage payments into homeowners and reducing the load on other housing assistance programs, the Chenoa Fund is helping to make safe, secure, and reliable homes into realities for many.