Chenoa Fund Down Payment Assistance Program in Kentucky

This Program is for any eligible potential home buyers in Kentucky .

You can find some general information about our program here:  https://chenoafund.org/homebuyer/providing-down-payment-assistance-on-fha-and-conventional-loans.

In short, Chenoa Fund covers the entire down payment and provides 3.5% and 5% assistance on FHA and 3% and 5% on Fannie Mae conventional loans. Some basic information and requirements for our products are included below:

With the DPA Edge Forgivable Soft Second product, you receive a 30-year term, 0% interest rate, no monthly payment second mortgage. You will need to meet the minimum credit score of 600 and have a qualifying income less than or equal to 115% of the median income for the county in which you will live. The loan is forgivable under conditions dependent on the down payment assistance amount:

• 3.5%: Forgivable after 36 consecutive, on-time payments on the FHA first mortgage.
• 5%: Forgivable after 120 consecutive, on-time payments on the FHA first mortgage.

The DPA Edge Repayable option has no income requirement and has either a 0% rate for a 10 yr term, or a 5% rate for a 30 yr term.

The Rate Advantage product, which is also paired with an FHA loan, also offers a 3.5% or 5% down payment assistance. With the 5%, 1.5% of that can be used for Closing Costs. It offers a 6% 10 yr. term, and requires a 640 minimum credit score, and the income requirement is less than or equal to 135% of the Area Median Income for the county where you will live.

For FHA loans, this assistance has a maximum debt-to-income (DTI) requirement of 45%, with more wiggle room for FICO scores of 640 and higher.

For Standard Conventional and Conventional HomeReady loans, the income requirement is according to Fannie Mae guidelines. This assistance covers the entire down payment and part of the closing costs. Assistance for conventional loans has a minimum FICO requirement of 620 and a maximum debt-to-income (DTI) requirement of 50%. Conventional loans carry a 10-year fixed rate with an interest rate 2% higher than the first mortgage rate.

Please let us know if you have any questions about these requirements. You can apply for our program through one of our approved lenders—in fact, you can access the entire program through your lender, from registration to closing, as long as your lender is approved.

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Check out CBC Mortgage Agency’s down payment assistance program known as Chenoa Fund below.

FHA

DPA Edge: Soft Second

3.5% and 5% DPA
600+ FICO Score

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Rate Advantage Program

3.5% and 5% DPA
640+ FICO Score

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DPA Edge: Repayable

3.5% and 5% DPA
600+ FICO Score

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CONVENTIONAL

HomeReady®

3% and 5% DPA
620+ FICO score

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Conventional Standard

3% and 5% DPA
620+ FICO score

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