Chenoa Fund
National non-profit DPA program for FHA buyers. It's available in Arizona and most other states. No income limit, no first-time-buyer requirement, FICO floor of 600. That makes Chenoa one of the most accessible DPA programs we work with. If you'd rather stay with an Arizona program, compare it against the options on our programs overview.
Quick answer: how does Chenoa Fund work?
- Where: Nationwide. Works anywhere in Arizona.
- Loan type: FHA-focused (FHA insured first mortgage required).
- Forms available: Forgivable second (30-year deferred at 0% interest) or Repayable second (10-year amortized at 1% above first mortgage rate).
- Assistance: 3.5% on most products; 5% on the repayable option.
- FICO floor: 600 (with full AUS approval).
- Income limit: None.
- FTHB requirement: Not required by Chenoa (FHA's normal rules apply).
Chenoa has no income limit, so it can be a good fallback when a buyer earns too much for an Arizona program like Home Plus or Home in Five. For the current Arizona income caps and assistance percentages, see our current DPA figures. Keep in mind that DPA programs don't stack with each other — you choose one per purchase, and it layers with your FHA first mortgage, not with a second DPA.
How it works, step by step
- Pre-qualify with us. Chenoa requires AUS (DU/LP) approval and a 600+ FICO.
- Pick the structure: Forgivable or repayable. Forgivable carries a slightly higher first-mortgage rate. Repayable keeps the rate lower but adds a 10-year second payment.
- The first mortgage is FHA-insured. Chenoa's DPA is recorded as a second lien.
- Close.
Eligibility
| Requirement | Detail |
|---|---|
| Loan type | FHA 203(b). Primary residence only, 1–2 unit. |
| Minimum FICO | 600 (with AUS approval). |
| Manual underwrites | Loan files going manual underwrite are reviewed but not always allowed. AUS approval preferred. |
| Income limit | None. |
| FTHB | Not required. |
| Property location | Anywhere in AZ (and 49 other states, varies). |
FAQ
Do you have to pay back Chenoa Fund down payment assistance?
It depends on which option you pick. The forgivable Chenoa second is a 30-year deferred lien at 0% interest with no monthly payment, and it is forgiven at the 30-year maturity, so you never repay it if you stay. The repayable option is a 10-year amortized second you do pay back. Forgivable is cheaper short-term; repayable usually wins if you stay long-term.
How much down payment assistance can I get from Chenoa Fund?
Chenoa Fund gives you 3.5% of the purchase price on most products and 5% on the repayable option, applied to your FHA down payment and closing costs. For comparison, Arizona's Home Plus offers up to 5% statewide and Home in Five offers up to 6.5% in Maricopa County. See the current DPA figures for those Arizona tiers.
What credit score do I need for Chenoa Fund?
You need a 600 FICO with a full Automated Underwriting System (AUS) approval to qualify for Chenoa Fund. That 600 floor is lower than Arizona's Home Plus and Home in Five, which both require a 640. A 600 score usually needs stronger compensating factors, such as a lower debt-to-income ratio or higher cash reserves.
What are the income limits for Chenoa Fund?
Chenoa Fund has no income limit, which is its biggest advantage. That makes it a good fallback when you earn too much for an Arizona program: Home Plus caps borrower income at $155,386 ($146,503 with FHA, VA, USDA, or conventional HFA loans), and Home in Five caps household income at $157,360. With Chenoa, your income never disqualifies you.
Do I have to be a first-time homebuyer to use Chenoa Fund?
No, Chenoa Fund has no first-time-homebuyer requirement, so repeat buyers qualify. Arizona's Home Plus and Home in Five also allow repeat buyers. When a program does mention "first-time buyer," it usually means you haven't owned a home in the past three years. Chenoa just follows FHA's normal occupancy and primary-residence rules.
Does Chenoa Fund work with FHA, VA, USDA, or conventional loans?
Chenoa Fund is built around an FHA-insured first mortgage, so that is the path we use most. Conventional Chenoa products do exist but follow different rules. For VA, USDA, or conventional down payment assistance, Arizona's Home Plus and Home in Five pair with all four loan types, and we'll match you to the right combination on your call.
Curious if Chenoa Fund is the right fit?
A 20-minute call. Bring your zip code, income range, and credit ballpark. We'll model real numbers against the actual program tiers.