Chenoa is a second mortgage — forgivable DPA Edge can feel grant-like; Rate/DPA Advantage is a repayable 10-year second loan.
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Chenoa Fund
Grant or Loan?
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.
Same assistance percentage — different obligations after closing.
Related guides on repayment, structure, and refinance timing.
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.