Chenoa Fund: national down payment assistance, including options with no income cap
The Chenoa Fund is a national down payment assistance program run by a government agency lending arm, available through participating lenders — including options with no income limit. How the repayable and forgivable structures differ, who it fits, and how it compares to local grants.
Who Chenoa Fund actually fits
- Your income is above the limits your local DPA programs use.
- You have the credit to qualify for an FHA or conventional loan but not the cash.
- Your county's grant funds are exhausted for the year.
- You're willing to work with a lender that participates in the program.
- You want a pure grant with no repayment under any circumstance.
- You qualify comfortably for a local forgivable grant — take the free money first.
- You want to use any lender you like.
- You aren't buying a primary residence.
What the process actually looks like
- 1
Check that you'd qualify for the underlying loan
Chenoa layers on top of an FHA or conventional mortgage. You still need to qualify for that loan on credit and DTI.
- 2
Find a participating lender
The assistance is only available through lenders approved to deliver it. Not every loan officer knows the program.
- 3
Pick the right structure
Some options are a repayable second mortgage; others forgive after a set period of on-time payments. This is the single most important question to ask.
- 4
Compare against local grants first
If a local forgivable grant covers you, take it. Chenoa is the answer when local money is capped, exhausted, or unavailable to you.
- 5
Confirm total cost, not just cash at closing
Compare the rate and the second-lien payment against a plain loan with less assistance.
Chenoa Fund vs. stacking grants and down payment assistance
| Factor | Chenoa Fund | Grant + DPA stack |
|---|---|---|
| Income limit | Options with none | Most local programs cap at area median |
| Form of help | Second mortgage — repayable or forgivable by option | Grants, forgivable loans, and deferred seconds |
| Coverage | National, via participating lenders | Whatever exists in your ZIP |
| Lender choice | Participating lenders only | Varies by program |
| Funding availability | Not tied to a county allocation | Local funds can run out mid-year |
| Best used | When local money is capped or gone | Always check first |
Common questions
Keep going
The Chenoa Fund is an independent organization. Home Approach is not affiliated with it, receives nothing for this referral, and cannot influence whether you're accepted or what terms you're offered. Program details change — confirm everything directly with them before you apply.