Chenoa opens doors for buyers with qualifying credit and a steady file — but every scenario still passes full underwriting. Here is what Ryan and Steve screen before you write an offer.
Chenoa Fund generally requires a minimum 600 FICO score. Higher scores unlock better first-mortgage pricing, which lowers your total monthly payment even when Chenoa covers your upfront costs.
Underwriters also review debt-to-income ratio, employment history, and asset reserves. Chenoa does not replace standard FHA qualification — you must qualify for both the FHA 203(b) first loan and the Chenoa second.
Recent bankruptcies, foreclosures, or significant collections may require waiting periods per FHA guidelines before Chenoa can be layered on your purchase.
Chenoa assistance pairs with specific first-mortgage products on primary residences only.
The only Chenoa pairing we offer. FHA accepts lower credit scores and 3.5% down — Chenoa 3.5% assistance can cover that minimum so you may bring minimal cash to closing.
Chenoa is no longer available with conventional financing. If you want a conventional first mortgage with DPA, ask about VLIP, Indiana Housing, or Hoosier Homes instead.
Occupancy must be primary residence. Second homes, investment properties, and non-owner-occupied purchases do not qualify under standard Chenoa products.
Rules that catch buyers off guard — and how Ryan and Steve screen them early.
Homebuyer Education (HBE)
Required if all borrowers are first-time homebuyers. Ryan and Steve tell you upfront when a course is required for your Chenoa file.
No temporary buydowns, co-signors, or renovation products
Temporary interest rate buydowns, co-signors, and renovation loan products are not allowed with Chenoa Fund assistance.
Payment shock reserves
If payment shock is greater than 100% (for example, current rent is $1,000 and the new payment is $2,250 — payment shock is 125%: $1,250 ÷ $1,000), or the borrower lives rent-free, 2 months of reserves are required. Gift funds cannot be used to meet the reserve requirement. If rent is not clearly noted on the bank statement, it must be verified with a VOR.
No income limits on standard FHA Chenoa
Standard FHA-paired Chenoa products typically have no income caps — a major advantage over many state DPA programs.
Related Chenoa guides and loan programs to compare before you apply.
National DPA overview — forgivable vs repayable structures.
Pre-qual through closing and 3.5% vs 5% pathways.
600 FICO minimum and what underwriters review beyond score.
Dollar examples at 3.5% and 5% by purchase price.
Full eligibility checklist, estimator, and qualification form.
Compare Chenoa with IHCDA and other programs.
FHA 203(b) guidelines that pair with Chenoa assistance.
Yes. Chenoa is not limited to first-time buyers. Homebuyer Education (HBE) is required if all borrowers are first-time homebuyers.
No. Chenoa Fund requires the property to be your primary residence. Investment and second-home purchases do not qualify under standard Chenoa products.
Standard FHA-paired Chenoa typically has no income caps. Ryan and Steve still confirm current product guidelines during pre-qual.
No. Co-signors are not allowed on Chenoa Fund transactions. Occupying co-borrowers who are on the loan and meet credit and occupancy requirements may still be evaluated together — Ryan and Steve confirm the correct structure for your file.
No. Temporary buydowns and renovation products are not allowed with Chenoa Fund assistance.
If payment shock is greater than 100% (for example, current rent is $1,000 and the new payment is $2,250 — payment shock is 125%), or the borrower lives rent-free, 2 months of reserves are required. Gift funds cannot meet the reserve requirement. If rent is not clearly noted on the bank statement, it must be verified with a VOR.
Ryan & Steve run a full eligibility screen — credit, loan type, occupancy, education, and income limits — before you shop.
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.