Everyone deserves to have their own home.
Unfortunately, a number of families aren’t able to afford their own home. The issue isn’t so much they don’t have the credit rating to get a mortgage.
The problem is they don’t have the funds necessary to put a down payment on a home.
Thankfully, these families now have a source of assistance. It’s a down payment assistance organization called Chenoa Fund.
Today, we’re going to explain how this fund works and why it’s such a great tool for new homebuyers.

What the Chenoa Fund Is and How It Can Help You Buy a New Home

For years now, the standard rate for a home buying down payment was around 20%. For many prospective homebuyers, this amount is a hefty chunk of change and often out of reach.
With rent prices and the cost of living constantly on the rise, saving 20% of the cost of a home takes years. For some people, it’s impossible.
According to Credit.com, however, the days of 20% down may very well be a thing of the past. Many loans don’t require as much and some figures can be negotiated as well.
Some home loans, particularly FHA loans, are available to assist first time home buyers by providing a break. FHA loans only require a 3.5% down payment.
And now, with help from the Chenoa Fund, coming up with the money for this type of a down payment has never been easier.

How the Chenoa Fund Works

The Chenoa Fund provides financial assistance to prospective buyers – giving them enough money to cover the 3.5% down payment amount of an FHA loan.
There are two different ways this fund works for home buyers.
First, the people behind the fund calculate the median home price within the area where a buyer is looking to live.
Then, they’ll figure in their annual income.
Finally, they’ll ensure the potential buyer has a good credit score. While they don’t demand “excellent” credit scores, the Chenoa Fund is based on having a decent score.
Based on these calculations, the Chenoa Fund will provide the 3.5% necessary to purchase a home in the buyer’s city of choice.
Another way the fund works is by providing a grant to eligible buyers.
Those buyers who have the same or less than 115% of the income level of the city where they live may be eligible for a grant.
The grant is given like a gift, which means borrowers aren’t required to pay the down payment amount back.
The term rate for this grant is 0% interest for 10 years, or 5% interest for 30 years.

Making Homeownership Within Reach

Purchasing a new home is an exciting prospect. But for those who don’t have the funds for a down payment, homeownership may seem out of reach.
Thankfully, with the Chenoa Fund and other mortgage options, becoming a homeowner might be well within reach.
Would you like more information about the Chenoa Fund or any of our other mortgage services? Contact Northpoint Mortgage today to schedule a consultation.