This guide covers down payment assistance with CHENOA DPA EDGE PROGRAM. Down payment assistance program can be forgiveable or non-forgiveable. Down payment assistance program can be a monetary grant, assistance, loan, or fund for first-time homebuyers. Part of the American Dream is being able to own a home. 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. In the following paragraphs, we will cover down payment assistance with CHENOA DPA EDGE Program.

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:

Types of Down Payment Assistance Programs

There are forgiveable and non-forgiveable down payment assistance programs. Forgiveable down payment assistance programs are DPA programs that needs to be paid back. It is treated like a second mortgage. Non forgivable down payment assistance programs do not have to be paid paid.

• Grants: These do not need to be repaid and are provided by governmental or non-profit organizations to assist with the home purchase.
• Low-interest loans: Some DPA programs offer secondary loans at low-interest rates that may be deferred or forgiven over some time.
• Forgivable loans: These loans may be forgiven over a set number of years, effectively turning into a grant if the homeowner remains in the home for the duration of the loan term.

DPA Eligibility Guidelines

Income Limits: Most programs have income restrictions to qualify, often aimed at low- to moderate-income families. First-Time Homebuyer Status: Many programs are available specifically for first-time homebuyers, though the definition of “first-time buyer” can vary. Homebuyer Education Courses: Applicants might be required to complete certain educational courses about homeownership. Click Here to get detail more about down payment assistance programs

Benefits of Down Payment Assistance Programs

DPA mortgage programs help reduce the barrier of large upfront costs, making homeownership accessible for more people. Potential for Improved Loan Terms: Lowering the loan-to-value ratio by applying more to the down payment can result in better mortgage terms. Location-Specific: Availability and specific terms of DPA programs can vary greatly depending on state, county, or city regulations and funding. Long-Term Commitment: Some programs require you to stay home for a certain number of years to benefit from the assistance fully. For those interested in such programs, contacting local housing authorities, non-profit organizations, or financial institutions specializing in housing finance is advisable. They can provide detailed information and guidance on what programs are available in your area and how to apply.

CHENOA DPA EDGE Program For First Time Homebuyers

It doesn’t matter where you were born, or what class we’re born into, you have the ability to achieve the American Dream through sacrifice and risk-taking: NOT BY CHANCE. The American dream promises freedom and equality to all. As the year’s progress, homeownership is often the main example of obtaining the American dream. It’s Not only a symbol of financial success and Independence. But it also gives you the ability to control your own living space without the control of a landlord. The term dream is not meant to be a fantasy. Many of our viewers reading this blog may think that homeownership is something that they will never be able to obtain. This is not true! What is the main hurdle for most Americans in 2024?  The down payment!  In this article, we will go over a down payment assistance program aimed at lower-income families. It is called the CHENOA DPA EDGE PROGRAM for first-time homebuyers..

“Lower-Income” Family Defined

That is very easy to figure out. The down payment assistance program provided by the Chenoa Fund uses 115% of the HUD area median income (AMI) for your specific county. Visit HUD INCOME LIMITS for your specific area. For all purposes of this article, your total family income must be below 115% of this number. Let’s go over a quick example for Cook County Illinois. Cook County encompasses all of Chicago and many surrounding suburbs. From the lookup tool, you will use the median family income. Then multiply that number by 115%. So, in this example for Cook County Illinois, we will use the following calculation. $84,600 * 115% = $97,290. Homebuyers’ combined family income must be lower than $97,290 annually.

CHENOA DPA EDGE PROGRAM Offers Down Payment Assistance

If you fall under this number for your specific County, this down payment assistance program can HELP YOU! So, how does the program work? The program is provided by the Chenoa fund and is called DPA Edge. This down payment assistance program will provide home buyers with 3.5% of the purchase price for the down payment. The 3.5% down payment assistance can come in the form of the following:

The gift that does not need to be paid back. A soft or forgivable secondary financing. Or a fully amortized second mortgage with a term of 10 or 30 years that do require the funds to be paid back.

If buyers are eligible for the soft/ forgivable secondary financing, the 2nd mortgage will be forgiven after 36 on-time payments on your first mortgage. This may be a little confusing, but each borrower is unique and should contact us directly to discuss their situation in more detail. Please reach out to us at Gustan Cho Associates for more details at 800-900-8569 or text us for a faster response. Or email us at alex@gustancho.com. The team at Gustan Cho Associates Group are experts on the Chenoa Fund! Click Here to connect with our experts

What are The Requirements for the Chenoa Fund DPA Edge Program?

Non- occupying co-borrower are allowed. You may be refunded earnest money deposited and other third-party fees at closing. At least one borrower must occupy the property as their primary residence (see HUD guideline). The minimum credit score of 620 or higher * Maximum debt-to-income ratio is determined by AUS approve/eligible findings (see AUS BLOG for more details). Manual underwriting allowed. Single-family dwellings or two-unit properties are eligible * Maximum loan amount will mirror HUD loan limits (see HUD LOAN LIMITS for your area). All points and fees must conform to qualified mortgage guidelines. Program not available in IL, MA, MS, NY, SD, or WV.

Qualifying For CHENOA DPA EDGE PROGRAM

If you feel this program is for you, what are your next steps? Gather some basic documentation for your loan officer, see below:

• Last 60 Days Bank Statements – to source down payment
• Last 30 Days Pay Stubs
• Last Two Years W2’S
• Last Two Years Tax Returns
• Driver’s License

Now give the team Gustan Cho Associates a phone call at 800-900-8569 or text us for a faster response to discuss your down payment assistance program options or email us at gcho@gustancho.com! We are available 7 days a week during the day or evening. Our customer service level is top-notch. please take a look at our reviews if you’re having any second thoughts! 100% Mortgage Financing is a possibility! Gustan Cho Associates has a national reputation for its no overlays on government and conventional loans.

Even if you are above the 115% median income for your county there are still down payment assistance options for you. Click Here to qualify for CHENOA DPA EDGE PROGRAM