Chenoa Fund
National non-profit DPA program for FHA buyers. It's available in Arizona and most other states. No income limit, no first-time-buyer requirement, FICO floor of 600. That makes Chenoa one of the most accessible DPA programs we work with.
Quick answer: how does Chenoa Fund work?
- Where: nationwide. Works anywhere in Arizona.
- Loan type: FHA-focused (FHA insured first mortgage required).
- Forms available: Forgivable second (30-year deferred at 0% interest) or Repayable second (10-year amortized at 1% above first mortgage rate).
- Assistance: 3.5% on most products; 5% on the repayable option.
- FICO floor: 600 (with full AUS approval).
- Income limit: none.
- FTHB requirement: not required by Chenoa (FHA's normal rules apply).
How it works, step by step
- Pre-qualify with us. Chenoa requires AUS (DU/LP) approval and a 600+ FICO.
- Pick the structure: forgivable or repayable. Forgivable carries a slightly higher first-mortgage rate. Repayable keeps the rate lower but adds a 10-year second payment.
- The first mortgage is FHA-insured. Chenoa's DPA is recorded as a second lien.
- Close.
Eligibility
| Requirement | Detail |
|---|---|
| Loan type | FHA 203(b). Primary residence only, 1–2 unit. |
| Minimum FICO | 600 (with AUS approval). |
| Manual underwrites | Loan files going manual underwrite are reviewed but not always allowed. AUS approval preferred. |
| Income limit | None. |
| FTHB | Not required. |
| Property location | Anywhere in AZ (and 49 other states, varies). |
FAQ
Forgivable or repayable: which is the better deal?
Forgivable: 30-year deferred 2nd at 0% interest. No monthly payment, forgiven at the 30-year maturity. Repayable: 10-year amortized 2nd at 1% above the first-mortgage rate. Repayable is usually cheaper if you'll stay in the home long-term because the first-mortgage rate is lower; forgivable is cheaper short-term because there's no second-mortgage payment.
Why FHA only?
Chenoa's program structure is built around the FHA-insured first mortgage. Conventional Chenoa products exist but have different rules; we'll cover those in your consult.
Can I do this with a 600 FICO?
Yes, with AUS approval. FICO 600 typically requires stronger compensating factors (lower DTI, higher reserves).
Do I have to be a first-time homebuyer?
No. Chenoa has no FTHB requirement.
Curious if Chenoa Fund is the right fit?
A 20-minute call. Bring your zip code, income range, and credit ballpark. We'll model real numbers against the actual program tiers.