Home / Loan options / Down payment assistance
Down payment assistance.
For most buyers the cash to close is the hard part, not the monthly payment. There is more help available than most people realize, and this is the part we solve most often.
Two routes, and they work differently
State housing finance agency programs
Every state we lend in has a housing finance agency running its own assistance programs — IHCDA in Indiana, IHDA in Illinois, OHFA in Ohio, MSHDA in Michigan, and so on. They are generally the cheapest help available, and they are income-capped, with the cap varying by county and household size. They also change from year to year, sometimes mid-year, and they run out of funds.
The Chenoa Fund
The Chenoa Fund is a national program run by CBC Mortgage Agency, a federally chartered government instrumentality. It pairs with an FHA first mortgage, and unlike the state agencies it is not income-capped, so it reaches borrowers who earn too much for state help but still have not saved enough.
It works in every state we lend in. Full details and current terms are on the Chenoa Fund page.
Which one fits you
It usually turns on income, not credit. If your household income sits under your county cap, the state program is normally the cheaper option and we start there. If you are over the cap — which happens to plenty of working households in the metros we serve — Chenoa is the route that stays open.
Assistance is not free money and we will not describe it that way. Depending on the program it may be a second mortgage, a forgivable loan with a residency requirement, or a grant. The terms are disclosed in full before you commit to anything, and your loan officer will walk you through what happens if you sell or refinance early.
What you still need out of pocket
Assistance covers the down payment and sometimes part of the closing costs. Separately from that, expect to pay earnest money when your offer is accepted, the appraisal fee, and a home inspection. Those are yours regardless of the program.
Find out what you qualify for.
A licensed loan officer reviews what you send and tells you where you stand, in writing. No cost, and no obligation to go further.