Chenoa Fund Down Payment Assistance in Florida — 2026 Guide

What Is the Chenoa Fund?

The Chenoa Fund is a national down payment assistance program administered by CBC Mortgage Agency, a federally chartered government instrumentality established by the Cedar Band of Paiutes. It was created to fill a gap in the DPA landscape: buyers who qualify for a mortgage but cannot save enough for a down payment, and who may earn too much for state-level programs like Florida Hometown Heroes or FL Assist.

According to CBC Mortgage Agency, the Chenoa Fund has helped tens of thousands of families nationwide become homeowners since its inception. The program works exclusively with FHA first mortgages through a network of participating lenders across all 50 states, including Florida.

For Tampa Bay buyers, the Chenoa Fund is particularly valuable because it has no household income limits — the single biggest barrier that disqualifies moderate-income earners from other DPA programs.

Why Do No Income Limits Matter?

Most Florida DPA programs set income caps based on Area Median Income (AMI). In Tampa Bay, these limits can exclude dual-income households, experienced professionals, and workers in higher-paying industries — even when those buyers genuinely struggle to save for a down payment after paying rent, student loans, and other living expenses.

The Chenoa Fund removes that barrier entirely. There is no income ceiling. If you meet the credit score, debt-to-income, and FHA loan requirements, you can qualify regardless of how much you earn. This makes the Chenoa Fund the go-to DPA option for buyers in the "middle gap" — earning too much for state help but not enough to save a 3.5% down payment quickly.

According to the National Association of REALTORS, down payment is the single largest obstacle for first-time homebuyers. The Chenoa Fund directly addresses this by making DPA available to a wider income spectrum than any Florida state program.

How Much Assistance Does the Chenoa Fund Provide?

The Chenoa Fund offers two assistance levels, both structured as a second mortgage behind your FHA first mortgage:

• 3.5% of the purchase price — Covers the exact FHA minimum down payment. On a $350,000 home, that is $12,250 in assistance.
• 5% of the purchase price — Provides extra funds beyond the down payment that can be applied toward closing costs. On a $350,000 home, that is $17,500 in assistance.

You choose between two second mortgage structures:

• Forgivable second mortgage — Requires 36 consecutive on-time payments on your first mortgage. After that, the remaining balance on the second mortgage is forgiven. This option typically requires a 620+ credit score.
• Repayable second mortgage — Carries a low fixed interest rate with a 10-year or 30-year repayment term. Monthly payments are small relative to your first mortgage. This option may accept credit scores as low as 600.

Your participating lender will run the numbers for both options and help you determine which structure results in the lowest total cost over the life of the loan.

How Does the Chenoa Fund Work with FHA Loans?

The Chenoa Fund is designed exclusively to pair with FHA first mortgages. Here is how the two work together:

1. You apply for an FHA loan through a Chenoa Fund-participating lender. FHA requires a minimum 3.5% down payment.
2. The Chenoa Fund provides the 3.5% (or 5%) as a second mortgage, so you do not need to bring down payment cash to closing.
3. Both loans close simultaneously. The FHA first mortgage sits in first lien position; the Chenoa Fund second mortgage sits behind it.
4. You make payments on the first mortgage. If you chose the forgivable option, the second mortgage requires no monthly payments and is forgiven after 36 on-time first mortgage payments. If you chose the repayable option, you make small monthly payments on both.

The FHA loan itself comes with competitive interest rates and flexible underwriting guidelines, including credit scores as low as 580 (though the Chenoa Fund layer may require 600-620). FHA mortgage insurance premiums apply to the first mortgage regardless of DPA usage.

What Credit Score Do You Need for the Chenoa Fund?

Credit score requirements depend on the second mortgage option you choose:

• Forgivable second mortgage: Typically requires a minimum FICO score of 620.
• Repayable second mortgage: May accept scores as low as 600, depending on the lender and other qualifying factors.

These thresholds are slightly higher than the FHA minimum of 580, but the trade-off is significant: you receive thousands of dollars in DPA that you would otherwise need to save on your own. For most buyers, the credit score requirement is easily met with a few months of credit-building habits.

Your lender will pull your credit during pre-approval and let you know exactly where you stand. If your score falls slightly below the threshold, they can recommend rapid credit improvement strategies to get you qualified within 30 to 90 days.

How Does the Chenoa Fund Compare to Other DPA Programs?

Each DPA program has strengths and trade-offs. Here is how the Chenoa Fund stacks up against the most popular Florida options:

For a full side-by-side breakdown of all Tampa Bay DPA programs, see the DPA Program Comparison Guide.

How Do You Apply for the Chenoa Fund in Florida?

The Chenoa Fund is only available through participating lenders. Here is the step-by-step process:

1. Find a Chenoa Fund-participating lender.Not all mortgage lenders offer the Chenoa Fund. You can search CBC Mortgage Agency's lender directory or call Barrett Henry at (813) 733-7907 for a referral to an approved lender in Tampa Bay.
2. Get pre-approved for an FHA loan. Your lender will review your credit, income, employment, and debt-to-income ratio to confirm you qualify for FHA financing.
3. Select your Chenoa Fund option. Choose between the 3.5% or 5% assistance level, and between the forgivable or repayable second mortgage structure.
4. Complete homebuyer education. A HUD-approved homebuyer education course is typically required.
5. Find your home and close. Work with a REALTOR who understands DPA transactions. At closing, the Chenoa Fund second mortgage funds alongside your FHA first mortgage.

Processing times are similar to a standard FHA loan — typically 30 to 45 days from contract to closing. The Chenoa Fund does not run out of funding like some state programs, so availability is generally year-round.