Chenoa shines for nationwide 3.5%–5% assistance with forgivable or repayable options — but it is a second mortgage, not a free grant, and product pairing can affect rate and monthly cost.
The Chenoa Fund helps buyers bring less cash to closing by pairing a first mortgage with a second lien for 3.5% or 5% of the purchase price. For many households, that is the difference between renting and owning.
Advantages include nationwide availability, FHA 203(b) pairing, a forgivable pathway (DPA Edge), and clearer rules than waitlisted local programs. Disadvantages center on second-lien complexity, possible rate/payment impact, and early payoff if you sell or refinance before forgiveness.
Ryan and Steve walk both sides with real numbers — assistance amount, monthly payment, and exit plans — so you choose with eyes open.
Where Chenoa typically beats saving longer or waiting on limited local funds.
3.5% or 5% of purchase price toward down payment or closing costs — dollars you do not have to scrape together alone.
Available across all 50 states, not locked to one county waitlist or annual funding cycle.
DPA Edge: 0% interest, no monthly second payment, forgiven after 36 consecutive on-time first-mortgage payments.
Works with an FHA 203(b) first loan — Chenoa is not offered with conventional financing. For conventional DPA, compare VLIP, Indiana Housing, or Hoosier Homes.
None of these are deal-breakers for the right buyer — but they should be intentional choices.
| Trade-off | What it means | How we handle it |
|---|---|---|
| Second lien | Not a pure grant | Explain payoff / forgiveness |
| Early sale / refi | Balance may be due | Map exit timeline |
| Repayable option | 10-year monthly payment | Budget side by side |
| Pricing impact | Pathway can affect rate | Compare total monthly cost |
| Eligibility rules | Credit · occupancy · education | Pre-screen before offers |
Related guides to weigh Chenoa against your other options.
Decision framework for your income, credit, and timeline.
Forgivable DPA Edge vs. repayable Rate/DPA Advantage.
Second-mortgage structure explained plainly.
3.5% and 5% examples by purchase price.
When stacking works — and when to choose one program.
Full program guide, estimator, and qualification form.
Compare Chenoa with IHCDA and other options.
Not always. DPA Edge (forgivable) wins when you want zero second-lien payment and plan to stay put through forgiveness. Rate/DPA Advantage can make sense when the rate structure improves the first mortgage and you can budget the 10-year payment.
It is a second lien — sale or refinance before forgiveness (or payoff) usually means addressing the balance. Buyers who expect a pure grant sometimes underestimate that.
Product pairing and which Chenoa pathway you choose can affect first-mortgage pricing. We compare total monthly cost — not just the assistance percentage — before you lock.
Buyers who need 3.5%–5% help nationwide, qualify for FHA 203(b), and want a clear forgivable or repayable second instead of waiting on limited local DPA funds.
Ryan & Steve will show assistance dollars, estimated payment, and what happens if you sell or refinance — so the trade-offs are specific to your purchase.
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.