Chenoa DPA EDGE Program: Powerful Aid for Home Buyers

Chenoa DPA EDGE Program: Your Guide to Down Payment Help in 2025

The American dream is a term we have all heard many times. But what is the “American Dream”? According to Wikipedia: American Dream is a belief that anyone can obtain their own version of success in a society where upward Mobility is possible to everyone. Owning a home is part of the American Dream. But for many buyers, especially first-time homebuyers, the biggest roadblock is saving for a down payment. That’s where the Chenoa DPA EDGE Program steps in.

This unique down payment assistance (DPA) program gives qualified borrowers the boost they need to buy a home with little or no money out of pocket. Whether you need a forgivable loan, a repayable second mortgage, or a grant, the Chenoa Fund has options.

At Gustan Cho Associates, we specialize in helping borrowers qualify for programs like the Chenoa DPA EDGE Program — even if other lenders said no.

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What is a Down Payment Assistance Program

The Down Payment Assistance Program (DPA) is designed to help homebuyers, especially first-time buyers, afford the initial home purchase costs. These programs vary widely based on location and the organizations offering them, but they generally provide financial aid for down payments and sometimes closing costs. Here’s an overview of how these programs typically work:

What Is the Chenoa DPA EDGE Program?

The Chenoa DPA EDGE Program is a down payment assistance program offered through the Chenoa Fund. It is designed to help homebuyers who qualify for an FHA loan but don’t have enough money saved for the minimum 3.5% down payment.

Instead of waiting years to save, this program provides a 3.5% down payment so you can move into your new home sooner.

How It Works

Grant option – This is a financial benefit provided to eligible borrowers in the form of a gift, which eliminates the burden of repayment. It allows individuals to secure funds without the pressure of paying back the amount, making it easier to afford a home.
Forgivable second mortgage – This loan option requires a down payment of 3.5%, and the amount borrowed is forgiven after the borrower makes 36 consecutive on-time payments. This program encourages responsible financial behavior while assisting buyers in achieving homeownership without the long-term debt burden.
Repayable second mortgage – This option offers a fully amortized second loan, available in 10- or 30-year terms and repaid through monthly payments. It allows borrowers to finance their home while establishing a repayment schedule that fits their financial situation.

Overall, the program is designed to be adaptable, catering to the unique needs of borrowers based on their income, credit history, and future aspirations.

Why Homebuyers Choose the CHENOA DPA EDGE Program

The Chenoa DPA EDGE Program is one of the most popular DPA programs in the country because:

It allows lower credit scores (starting at 620).
It permits manual underwriting, which means borrowers with unique financial situations can still qualify.
It works for first-time and repeat buyers (as long as they meet income limits).
It can help borrowers in competitive markets where saving for a down payment is tough.
It opens the door to 100% financing with FHA loans.

Who Qualifies for the Chenoa DPA EDGE Program in 2025?

Income Requirements

The most significant factor is income. To qualify, your household income must be below 115% of your area’s median income (AMI) as determined by HUD.

Example:

In Cook County, Illinois, the median income for a family is about $84,600. Multiply that by 115%, and the income limit is $97,290. If your family earns less than that, you may qualify.

You can check your county’s AMI limits on the HUD Income Limits Tool.

Other Eligibility Rules

Credit Score: Minimum 620.
Occupancy: At least one borrower must live in the home as a primary residence.
Property Types: Single-family homes and 2-unit properties.
Loan Type: Must be an FHA loan.
Loan Limits: Matches HUD’s FHA loan limits for your county.
DTI Ratios: Determined by automated underwriting (AUS approve/eligible findings). Manual underwriting allowed.

Not Available in: Illinois, Massachusetts, Mississippi, New York, South Dakota, or West Virginia.

How the Chenoa DPA EDGE Program Helps With Down Payments

Many buyers find it challenging to save the necessary 3.5% down payment for an FHA loan. For instance, a $250,000 home amounts to $8,750 in upfront costs, not accounting for additional closing expenses.

Fortunately, the Chenoa DPA EDGE Program offers solutions to cover that down payment through three different options.

You can choose a gift that does not require repayment, a forgivable second loan that is forgiven after making 36 on-time payments, or a repayable second loan that can be paid back over a period of 10 or 30 years at affordable rates.

This means you can get into a home with little or no money down.

Chenoa DPA EDGE Program vs. Other Down Payment Assistance

Many DPA programs are local or state-based, but the Chenoa DPA EDGE Program is offered nationwide (with exceptions). Unlike some programs, it:

Does not require first-time buyer status.
Offers both forgivable and repayable options.
Allows higher income limits (115% of AMI).
It can be used with manual underwriting, which other DPA programs often restrict.

This flexibility makes it a strong option for borrowers who may not fit the box for local programs.

Steps to Apply for the CHENOA DPA EDGE Program

If you think the Chenoa DPA EDGE Program might be right for you, here’s what to expect:

1. Check your income limit

Before applying for the Chenoa DPA EDGE Program, verifying that your income is below 115% of the Area Median Income (AMI) is essential. This ensures eligibility for the program, as it is designed to assist low-to moderate-income households. Understanding where you stand in relation to AMI will help you assess whether this program can support your homeownership goals.

2. Review your credit score

Your credit score is super important when applying for a mortgage. If you’re looking into the Chenoa DPA EDGE Program, you’ll need a credit score of at least 620. It’s good to check your score beforehand to see where you might improve and understand how lenders will view your financial situation. If your score isn’t up to par, consider ways to boost it before applying.

3. Gather documents

The proper documentation is key to a smooth application process. Here’s what you’ll need:

- Last 60 days of bank statements
- Last 30 days of pay stubs
- Last 2 years of W-2s and tax returns
- Government-issued ID

4. Contact Gustan Cho Associates

If you’ve been turned down elsewhere or feel a bit lost about the whole process, getting in touch with Gustan Cho Associates can really help. Our team is all about working without the extra hurdles, so we focus on finding solutions that fit your specific situation. We’re here to help you tackle the mortgage process and make sure you get the best options out there.

Call us at 800-900-8569, text us for a faster response, or email us at gcho@gustancho.com.

Long-Term Benefits of Using the CHENOA DPA EDGE Program

When you use the Chenoa DPA EDGE Program, you’re not just getting help with a down payment. You’re also:

Building equity sooner instead of renting.
Accessing better FHA loan terms with lower loan-to-value ratios.
Protecting your savings for moving expenses and emergencies.

Gaining the ability to buy in 2025’s competitive housing market without waiting years to save.

Final Thoughts: Make Homeownership Possible With the Chenoa DPA EDGE Program

The Chenoa DPA EDGE Program is one of the most powerful tools for buyers who dream of homeownership but are held back by the down payment. Whether you qualify for a forgivable loan, a repayable second, or even a grant, this program can help you buy a home in 2025.

At Gustan Cho Associates, we specialize in programs like Chenoa, with no lender overlays and approvals for borrowers that many banks turn away.

Borrowers who need a five-star national mortgage company licensed in 50 states with no overlays and who are experts on Chenoa DPA EDGEE Program, please contact us at 800-900-8569, text us for a faster response, or email us at alex@gustancho.com. Don’t let the down payment stop you. Contact us today to see if you qualify for the Chenoa DPA EDGE Program and take the first step toward your new home.