Stacking Hometown Heroes with Chenoa Fund — Is It Possible?

The Chenoa Fund is a nationwide down payment assistance program that helps buyers who qualify for an FHA mortgage but lack the 3.5% down payment. Florida buyers sometimes wonder whether they can stack Chenoa Fund assistance with Florida Hometown Heroes for even more help. Here is what you need to know.

What Is the Chenoa Fund?

The Chenoa Fund is administered by the CBC Mortgage Agency, a federally chartered government entity. It provides 3.5% or 5% of the loan amount to cover the FHA down payment, offered as either a forgivable second mortgage (forgiven after 36 on-time payments) or a repayable second mortgage (10-year term). The fund is available nationwide and has no first-time buyer requirement.

Can You Stack Chenoa Fund with Hometown Heroes?

Generally, no. Both Chenoa Fund and Hometown Heroes are structured as second mortgages that sit behind your first mortgage. Lenders and program administrators typically do not allow two separate DPA second mortgages on the same transaction. The first mortgage lender would need to approve multiple subordinate liens, and neither program is designed to be in a third-lien position.

However, the DPA landscape changes frequently. Specific lender overlays and program rule updates could create windows where combinations work. Always confirm current rules with your participating lender.

How to Choose Between Chenoa Fund and Hometown Heroes

If you cannot stack them, you need to pick the program that saves you the most. Hometown Heroes offers up to 5% of the first mortgage, is forgivable after a set period, requires first-time buyer status and Florida employment, and has income limits tied to county AMI.

Chenoa Fund offers 3.5% or 5% of the loan amount, has a 3-year forgiveness option (DPA Edge program), has no first-time buyer requirement, and has more flexible income guidelines. For buyers who are not first-time purchasers, Chenoa Fund may be the only option since Hometown Heroes requires first-time buyer status. For first-time buyers who meet income limits, Hometown Heroes typically provides more favorable terms because the forgiveness period is straightforward.

What About Stacking Chenoa Fund with SHIP?

County SHIP funds may be compatible with Chenoa Fund in some situations, since SHIP is administered locally and has different structural requirements than Hometown Heroes. Ask your lender whether your county's SHIP program allows layering with Chenoa Fund assistance.

How to Determine Your Best DPA Option

Barrett Henry, REALTOR® with REMAX Collective, works with lenders who are approved for both Hometown Heroes and Chenoa Fund. They can run side-by-side comparisons showing which program saves you more over time. With 23+ years of real estate experience, Barrett helps buyers evaluate all available DPA options before committing.

Call Barrett at (813) 733-7907 to compare your DPA options.