Chenoa Guide

Do I Have to Repay the Chenoa Fund?

It depends on the product. Forgivable DPA Edge requires no monthly payment and can be forgiven after 36 on-time first-mortgage payments. Repayable Rate Advantage / DPA Advantage options require fixed monthly payments over a 10-year term.

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Two Paths, Two Repayment Rules

Chenoa Fund is structured as a second mortgage behind your first loan. Whether you “repay” it depends on which pathway you choose — not on whether assistance feels like a gift at closing.

DPA Edge is the forgivable option: 0% interest, no monthly payment, and automatic forgiveness after 36 consecutive on-time payments on your first mortgage. Miss a payment and the forgiveness clock typically resets.

Rate Advantage and DPA Advantage are repayable: fixed competitive interest, a 10-year term, and a monthly payment that sits beside your primary mortgage payment until the second lien is paid off.

Repayment Snapshot

DPA Edge0% · no monthly payment

Forgiveness36 on-time 1st-mortgage payments

Rate / DPA Advantage10-year fixed repayment

Early sale / refinanceBalance often due

Assistance amount3.5% or 5% of price

What Triggers Repayment Early

Even forgivable assistance can come due if the second lien is not yet forgiven.

Sale of the home

Selling before forgiveness usually requires paying off the remaining Chenoa balance from sale proceeds.

Refinance of the first mortgage

Refinancing often triggers payoff of the Chenoa second unless a subordinate refinance is specifically allowed — we check product rules first.

Payoff of the first mortgage

Paying off the primary loan early can accelerate the second-lien due date under typical Chenoa notes.

Missed first-mortgage payments

On DPA Edge, late or missed payments can reset the 36-month forgiveness clock — consistency matters.

Forgivable vs. Repayable Side by Side

Use this to decide which Chenoa structure fits your monthly budget and exit plans.

Feature	DPA Edge (forgivable)	Rate / DPA Advantage
Monthly Chenoa payment	None	Yes — fixed rate
Interest	0%	Competitive fixed
Term	Forgiven after 36 on-time 1st payments	10 years
Best when	You want zero second-lien payment	You want rate advantage and can budget the payment

Keep Exploring

Related Chenoa guides on structure, refinance, and assistance sizing.

Is Chenoa a Grant or a Loan?

How forgivable vs repayable structures are classified.

How Does Chenoa Fund Work?

3.5% vs 5% pathways and DPA Edge vs Rate / DPA Advantage.

Can I Refinance After Using Chenoa?

What happens to the second lien when you refinance.

How Much Assistance Does Chenoa Provide?

3.5% and 5% dollar examples by purchase price.

Chenoa Fund Overview

Full program guide, estimator, and qualification form.

Down Payment Assistance

Compare Chenoa with IHCDA and other DPA options.

FHA Loans

FHA 203(b) first mortgages that pair with Chenoa.

Frequently Asked Questions

Does forgivable Chenoa ever require a monthly payment?

No. DPA Edge carries 0% interest and no monthly payment. You still make on-time payments on your first mortgage — 36 consecutive ones unlock automatic forgiveness.

What happens if I sell before forgiveness?

If you sell, refinance, or pay off the first mortgage before the forgiveness period ends, the remaining Chenoa second-lien balance is typically due. Ryan and Steve confirm the payoff rules for your exact product.

How long is the repayable term?

Rate Advantage and DPA Advantage use a 10-year repayment term with a fixed competitive rate. Monthly payments run alongside your primary mortgage until the second lien is satisfied.

Can I pay off a repayable Chenoa second early?

Usually yes — early payoff is allowed on repayable structures, subject to the note terms. Ask during pre-qual if any prepayment language applies to your lender’s Chenoa product.

Not Sure Which Repayment Path Fits?

Ryan & Steve will model forgivable vs. repayable Chenoa against your first mortgage payment and cash-to-close goals.

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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.

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