Chenoa Fund is structured as a second mortgage — not a no-strings cash grant. Forgivable DPA Edge can feel grant-like after 36 on-time payments; repayable options function as a true 10-year second loan.
Marketing often calls down payment assistance a “grant,” but Chenoa is administered by CBC Mortgage Agency as a subordinate mortgage behind your FHA 203(b) first loan. That legal structure protects the assistance and sets clear rules for forgiveness, repayment, sale, and refinance.
DPA Edge is the closest to grant-like outcomes: 0% interest, no monthly payment, and forgiveness after 36 consecutive on-time first-mortgage payments. Until then, it remains a lien that can come due on certain exits.
Rate Advantage and DPA Advantage are straightforward second loans — fixed rate, monthly payment, 10-year term — often chosen when the rate or product fit outweighs the extra payment.
Calling Chenoa a grant vs. a loan changes how you plan payments, exits, and credit.
Either path can fund 3.5%–5% toward down payment or closing costs — the difference is what you owe afterward.
Forgivable = no Chenoa payment. Repayable = budget a second payment for up to 10 years.
A remaining second-lien balance is typically due unless product rules allow another outcome — we verify before you list or refi.
Both paths require dual approval: your first mortgage and the Chenoa second. Credit, DTI, and occupancy still apply.
Same assistance percentage — different obligations after closing.
| Question | DPA Edge | Rate / DPA Advantage |
|---|---|---|
| Feels like a grant? | After forgiveness, yes | No — repayable loan |
| Documented as | Second mortgage | Second mortgage |
| Monthly payment | None | Required |
| Path to zero balance | 36 on-time 1st payments | Pay schedule or refinance/payoff |
Related guides on repayment, structure, and refinance timing.
Forgivable DPA Edge vs. 10-year repayable options.
National DPA overview from CBC Mortgage Agency.
Pre-qual through closing and 3.5% vs 5% pathways.
How a second lien affects refinance plans.
Full program guide, estimator, and qualification form.
Compare Chenoa with IHCDA and other DPA options.
FHA 203(b) first mortgages that pair with Chenoa.
It behaves like assistance you may never repay if you meet the forgiveness conditions — but it is still documented as a second mortgage, not a cash grant with no lien.
As a second mortgage, the Chenoa lien is part of your mortgage file. Reporting practices follow the note and servicer; Ryan and Steve explain how it appears alongside your first mortgage.
Only on repayable products. DPA Edge has no monthly Chenoa payment. Rate / DPA Advantage add a fixed second-lien payment for up to 10 years.
It reduces cash to close, but terms still apply — forgiveness rules, occupancy, and possible payoff on sale or refinance. We walk through the real obligations before you choose a product.
Ryan & Steve will show you exactly how forgivable vs. repayable Chenoa looks on your Loan Estimate and monthly payment.
Chenoa Fund is a registered trademark of CBC Mortgage Agency. All programs are subject to borrower qualification and lender approval. This website is not directly affiliated with or endorsed by HUD, FHA, or the CBC Mortgage Agency.