From pre-qual through closing, Chenoa layers a second mortgage on your FHA 203(b) first loan — delivering 3.5% or 5% toward down payment or closing costs via a forgivable or repayable structure.
Four milestones every Chenoa-assisted purchase follows.
Ryan and Steve pull credit, verify income and assets, and confirm an FHA 203(b) first loan. They simultaneously screen Chenoa 3.5% vs 5% and forgivable vs repayable structures.
Your FHA 203(b) loan goes through standard underwriting while Chenoa second-lien docs are prepared. Both approvals must clear before you can lock and schedule closing.
If required, you complete a HUD-approved homebuyer education course. Remaining conditions — appraisals, insurance, title — follow the same path as any purchase.
At closing, Chenoa assistance funds apply toward your down payment and/or closing costs. You sign both the first mortgage and Chenoa second-lien note, then begin your first-mortgage payment schedule.
The assistance percentage depends on how much help you need at closing on your FHA 203(b) purchase.
3.5%
The most common pairing with FHA 203(b). On a $350,000 home, that is $12,250 — enough to cover FHA's minimum down payment so you may bring little or no cash to closing.
Also used when you need help offsetting FHA closing costs after the 3.5% down is covered.
5%
Higher assistance for buyers who need more help at the table. On a $400,000 home, 5% equals $20,000 toward down payment or closing costs.
Often used when FHA closing costs would otherwise drain your reserves after the minimum down payment.
Your second-lien structure determines whether you make monthly Chenoa payments and when assistance is forgiven.
Forgivable
Repayable
Related Chenoa guides and loan programs to compare before you apply.
Program overview — national DPA from CBC Mortgage Agency.
Credit, loan type, occupancy, and education requirements.
600 FICO minimum and underwriting factors beyond score.
3.5% and 5% dollar examples by purchase price.
Estimator, comparison table, eligibility checklist, and form.
Compare Chenoa with state and local DPA programs.
How FHA 203(b) pairs with Chenoa assistance.
Timelines mirror standard FHA purchases — typically 30–45 days from contract to close. Chenoa adds a second-lien component, so Ryan and Steve start the Chenoa approval alongside your FHA 203(b) underwriting to avoid delays.
Under DPA Edge, your Chenoa second is forgiven automatically after 36 consecutive on-time payments on your first mortgage. A single late payment resets the forgiveness clock.
Only on repayable Rate Advantage or DPA Advantage products. Forgivable DPA Edge carries 0% interest and no monthly payment on the Chenoa second.
Your assistance level is locked at origination based on your FHA 203(b) file and Chenoa product. Ryan and Steve model both scenarios during pre-qual so you pick the right amount before you write an offer.
Ryan & Steve will map your pre-qual through closing — including which Chenoa structure fits your timeline and budget.
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.