Down payment assistance
Chenoa Fund down payment assistance
The Chenoa Fund is a national down payment assistance program run by CBC Mortgage Agency. It covers 3.5% to 5% of the purchase price as a second mortgage you pair with an FHA or conventional loan — and unlike a lot of state programs, it has no income limit and doesn’t require you to be a first-time buyer. I’m Frank L Coxx, a licensed North Carolina broker with NorthGroup Real Estate, and I’ll help you figure out whether it fits before you start touring homes.
Forgivable or repayable — two ways it’s structured
Chenoa offers the assistance in two forms, and which one makes sense depends on your plans:
- Forgivable second mortgage. A 0%-interest, 30-year loan with no monthly payment that is fully forgiven after you make 36 consecutive on-time payments on your first mortgage. If you stay current for three years, you never pay it back.
- Repayable second mortgage. A 3.5% or 5% second with its own competitive interest rate and a monthly payment, typically for buyers who don’t expect to keep the loan long enough for the forgivable option to make sense.
Who qualifies (current as of 2026)
- Minimum credit score of 600.
- No income limits — a key difference from most state and local programs, including NCHFA.
- You don’t have to be a first-time buyer.
- Pairs with FHA and Fannie Mae conventional first mortgages.
- The home must be your primary residence — no investment or second homes.
- A homebuyer counseling/education course may be required, particularly at lower credit scores.
Chenoa is available in every state except New York, so it works fine here in North Carolina and across the whole Charlotte metro I cover — from Charlotte, NC out to Monroe, Matthews, Concord, and beyond.
Chenoa Fund or NCHFA — which one?
They solve different problems. The state’s NCHFA program gives a flat $15,000 but caps your income and is aimed at first-time buyers. Chenoa has no income cap and no first-time requirement, which makes it an option for move-up buyers or higher earners who still want help with the down payment. A lender who offers both can run your numbers each way — that’s the comparison worth doing.
What I do, and what a lender does
I’m a broker, not a lender, so I won’t quote you a rate, a payment, or a guarantee of approval — those come from a lender who participates in the Chenoa Fund program. What I do is make sure the option is on the table, connect you with a lender who actually offers it, and represent you through the offer, inspections, and closing so the assistance makes it to the closing table.
Program details are current as of 2026 and summarized from CBC Mortgage Agency (chenoafund.org). Terms, rates, and participating lenders change; this page is not a loan offer, a rate quote, or a guarantee of eligibility. Confirm current program terms with a participating lender.
Want to know if Chenoa fits?
Tell me a little about your situation and I'll point you to a lender who offers the Chenoa Fund — no pressure, just a straight answer.