Yes. Seller concessions can still help with closing costs when you use Chenoa — within FHA contribution limits. Chenoa and seller credits often stack to lower your cash to close.
Chenoa Fund does not ban seller-paid closing costs. Your purchase contract can still request a seller contribution toward allowable fees, prepaid items, and other eligible closing costs — just as it would on a purchase without DPA.
The guardrails come from the first mortgage. FHA caps how much a seller can contribute. Those caps still apply when Chenoa sits in second position.
Ryan and Steve size Chenoa assistance and seller credits together so you do not over-request credits that underwriting will cut — or leave cash on the table at closing.
A strong offer uses Chenoa for down payment help and seller credits for fees — without mixing the two in confusing contract language.
State the seller contribution as a dollar amount or percentage toward buyer closing costs — not as a vague “pay everything” promise underwriters cannot honor.
FHA’s typical 6% ceiling still applies. Over-asking can force a last-minute contract amend.
Credits generally cover origination, title, prepaid taxes/insurance, and similar items — not unlimited cash back to the buyer.
The Chenoa second and first-mortgage underwriter both review sources of funds. We keep the file consistent from contract to Closing Disclosure.
Illustrative only — your numbers depend on price, product, and negotiated credits.
| Item | Without stacking | With Chenoa + seller credit |
|---|---|---|
| Down payment need | Buyer cash | Often covered by Chenoa % |
| Closing costs / prepaid | Buyer cash | Seller credit (within caps) |
| Chenoa second lien | N/A | Recorded at closing |
| Net cash to close | Higher | Often much lower |
Related guides on assistance sizing, FHA pairing, and seller concessions.
3.5% and 5% examples by purchase price.
FHA 203(b) pairing and MIP basics.
FHA 203(b) pairing, MIP, and closing-cost basics.
Primary residences and property eligibility.
Full program guide, estimator, and qualification form.
How FHA’s minimum down payment works with or without DPA.
Compare Chenoa with IHCDA and other DPA.
No. Chenoa covers part of your down payment or closing costs via a second lien. Seller credits are a separate negotiation under FHA concession caps.
FHA generally allows seller contributions up to 6% of the sales price toward allowable closing costs and prepaid items — subject to underwriting and contract language.
Often yes, within first-mortgage concession limits and as long as funds are applied to eligible costs. Ryan and Steve structure the contract language so credits and Chenoa do not conflict.
Chenoa assistance is typically a percentage of purchase price (3.5% or 5%). Seller credits change cash to close, not the Chenoa percentage itself — we still verify eligible uses at underwriting.
Ryan & Steve will model Chenoa assistance and allowable seller concessions so your offer and cash-to-close stay underwriting-ready.
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.