Is the Chenoa fund legit?
Chenoa is funded by CBC Mortgage Agency (CBCMA), a federally chartered government agency. CBCMA specializes in providing financing for loans under the guidelines of FHA and Fannie Mae and partners with quality mortgage lenders on a correspondent basis. American Financing is an approved Chenoa Fund partner.
What does forgivable second mortgage?
Forgivable mortgage loans are second mortgages that you won’t have to pay back as long as you stay in a home for a set number of years. These loans come with an interest rate of 0%. Lenders will forgive them, meaning that owners won’t have to pay them back, after a certain number of years.
What is a soft second mortgage?
A “soft second” is a type of second, subordinate mortgage loan that is used to cover down payment and closing costs. The soft second has a deferred payment schedule in which the borrowers do not have to make any payments until/unless they sell their home or refinance their mortgage.
How does the Chenoa fund work?
Chenoa Fund™ is a down payment assistance program provided by CBC Mortgage Agency. Under this program, buyers who meet certain eligibility criteria may receive a second mortgage to cover the minimum down payment requirement when purchasing an FHA-insured or FNMA conventional loan.
Do you have to pay back the Chenoa fund?
The Chenoa Fund DPA Edge is a ‘Soft Second’ mortgage. This option is quite popular among borrowers with lower income, because the funds used for a down payment are forgivable – meaning you typically don’t have to pay the loan back.
Does Chenoa fund cover closing costs?
More affordable monthly payments. Sure, there’s the upfront cost of the down payment and closing costs, but the Chenoa Fund™ program can help with the down payment (and a portion of the closing costs, in some instances), while a seller of a home may help with the closing costs.
Can a second mortgage be used as a down payment?
When used as down payment assistance, second mortgages may carry a zero or low-interest rate; or interest may be deferred for a certain amount of time. This means that the borrower can focus their effort and resources on paying off the original loan first while the secondary loan remains silent.
Can you take out a second mortgage for down payment?
You can take out a home equity loan (HEL) or home equity line of credit (HELOC) to make the down payment on your second home. Your first home serves as collateral. Advantages of HELs and HELOCs as a down payment include the following: You may be able to deduct the interest paid on home equity debt, up to $100,000.
What is a ghost mortgage?
A silent second mortgage is a second mortgage placed on an asset (such as a home) for down payment funds that are not disclosed to the original lender on the first mortgage. The second mortgage is called “silent” because the borrower does not disclose its existence to the original mortgage lender.
Is Chenoa fund forgivable?
What is Chenoa fund program?
Chenoa Fund is a national down payment assistance program provided through CBC Mortgage Agency. CBC Mortgage Agency’s mission is to increase nationwide affordable and sustainable homeownership, with a focus on creditworthy, low and moderate-income individuals.