New FHA Down Payment Assistance Program

Nearly a fourth of first-time buyers use a Federal Housing Administration (FHA) loan, according to the National Association of REALTORS®. But with recent home price increases, even FHA’s low 3.5% down payment can be tough to tackle for many buyers. Atlantic Bay’s new down payment assistance (DPA) program for FHA loans, Chenoa, makes that down payment possible – with some other great perks! Chenoa Fund™ DPA for FHA Loans is unique because it offers a 3.5% second mortgage as a down payment, not just settlement costs, which creates a 100% combined loan-to-value FHA loan. Better yet, because FHA allows up to 6% in settlement cost assistance, in the right circumstances a qualified borrower could need little if any cash for the closing! Additional benefits that make Chenoa helpful for your buyers include:

• No first-time homebuyer requirement as some other DPA programs have.

• Generous income limit that is higher than the state bond programs. 

• There is no minimum contribution from the borrower.

Other program features to remember:

• Minimum credit score of 600.

• Homebuyer education required for borrowers with credit score under 640.

• Minimum LTV is 90%.

• Non-occupant co-borrowers not allowed.

• Construction-to-Permanent and single-wide manufactured homes not allowed.

Don’t forget, in addition to Chenoa and other down payment assistance programs, your buyers can use gift funds from relatives and friends to help toward the down payment, too. Have questions? I’m happy to help – call, text, or email me today!