Down Payment Assistance in Tennessee

The Chenoa Fund is a Homebuyer Downpayment Assistance Program in the form of an extra loan added onto the first mortgage.   This Program can provide funds to cover the down payment and also some of the closing costs.

Here are some quick facts:

Property Location:  Anywhere in 49 states (everywhere except NY )

Property Type:  SFR, Duplex, Townhome, Condo, Modular homes and Manufactured Doublewides or Triplewides built after 1976 (no Singlewides)

Acreage Limit:   No limit on acreage

Borrower Status: Available to All Buyers – not limited to FTHB

Borrower’s Minimum Credit Score: 600

Maximum Income Limit:  None

DTI Debt to Income Max: 50% (or higher with FHA AUS approval from DU)

Max Home Price: No limit

Max Loan Amount: 5% of the price, no max limit

Loan Payment choices:  Forgivable option. NO monthly payment

Remains as a lien for 30 years. However, it can be Forgiven and lien released after 36 months if the first mortgage is paid on time for 36 months straight. Loan must be paid off if home is refi or sold.

Loan Payment choices:  Repayable option. Monthly payment set on a 10 year term, interest rate is 1% higher than the first mortgage. Loan must be paid off if home is refi or sold.

Home Buyer Education Required: Yes, online class is free.

First Mortgage loan can be:  FHA only. Either 25 or 30 yr term with a fixed rate. 

Charges added to closing costs:  None

After closing, Loans will be transferred to: CBC Mortgage Servicing