How to Get 100% Financing for Up to $453,100 Through the Chenoa Fund!

Large home with porch and green lawn under blue sky

With 100% financing through the Chenoa Fund, you can actually achieve 100% financing for your home purchase up to $453,100! 

This is a type of loan that is almost unheard of in the real estate sector, and while 100% financing may not be for all, it can be a significant boost to people who are struggling with their down payments.

At San Diego Purchase Loans, we are proud to offer a wide variety of real-estate financing options. From jumbo loans to refinancing, we believe that affordable lending is critical to your financial future, and we would love to help you secure 100% financing through the Chenoa Fund.

Interested? Then keep reading to learn more about eligibility and how to get 100% financing through the Chenoa Fund.

Get 100% Financing Through the Chenoa Fund

Using the Chenoa Fund, you can get 100% financing for your home loan. They have a few different options for homebuyers, including a soft second, which is a favorable and flexible option for many borrowers. With this option, there is no payment required, and it only calls for a 620 credit score or higher. It also allows borrowers to acquire 100% financing if they earn up to 115% of the median annual income for their area, making it available to more borrowers.

There is also a 0%-interest second loan if you choose a 30-year term. The Chenoa Fund has many options that we would be happy to discuss with you.

Are You Eligible for 100% Financing Through the Chenoa Fund?

To take advantage of this beneficial program, you need to be eligible. The Chenoa Fund is meant for people with moderate to low incomes, so not all buyers will qualify. However, no matter what your income you owe it to yourself to look over the qualifications for 100% financing through the Chenoa Fund to see if you may be eligible.

First of all, you must have an income that is 115% or less of the median income in your area. If you meet this requirement, you may be eligible for the soft second, which does not require repayments until after 36 months and does not require repayment if you have no late payments with your lender during that time. This means that you could actually have your down payment essentially paid for by the Chenoa Fund!

If your income does exceed 115% of the area’s median income, there are still options available. You can still get down-payment assistance in the form of a fully-amortized second mortgage, which will require repayment. For the second mortgage, you have the option of choosing from a couple of long-term and associated interest rates. This is a flexible option that is one of the many advantages of working with the Chenoa Fund, especially compared to some state bond programs that provide down payment assistance but are not nearly as flexible. Bond programs usually have stricter limits on debt-to-income ratios, location of the home, income requirements, and credit.

Advantages of 100% Financing

With 100% financing through the Chenoa Fund, you can purchase a top-quality home up to $453,100.

While financing 100% of your purchase is not for everyone, it may be the right choice for a lot of buyers, especially those that have a difficult time saving for a down payment. With 100% financing, the initial costs of buying a home are far less expensive. The down payment, as well as closing costs, can amount to tens of thousands of dollars, and many people simply don’t have this money is savings. Therefore, they may be entirely unable to pay for a home and will stay out of homeownership, which is seen as an important part of financial stability for Americans.

Even people with cash on hand may prefer 100% financing because it allows them to use their finances in different ways. For example, some people feel it is a better financial choice to hold on to their money and place it in an investment account, which stands the chance of growing at rates that outpace the interest on the money borrowed. Essentially, they think “why not pay the mortgage interest and invest the money instead?”. Of course, this plan can backfire if the market goes down, so it’s not a plan endorsed by all financial experts.

Does 100% Financing Have a Downside?

There are, of course, some downsides to 100% financing. Assuming you have to pay back the second loan or the entire 100% financing loan (which may not always be the case with the Chenoa Fund), you will be paying interest on the full amount. With a down payment, you reduce the overall cost of the loan and reduce the amount of interest. This will mean a lower monthly payment for you as well, which could certainly be beneficial to your monthly expenses.

No matter what your situation, be sure to talk with a qualified professional before making any decisions related 100% financing.

What is the Chenoa Fund?

The Chenoa Fund is a program dedicated to affordable housing that is provided by the CBC Mortgage Agency, which is a government institution. They specialize in providing down-payment assistance with FHA loans across the country, helping to improve the overall opportunities for families and individuals struggling with homeownership.

The CBCMA is a federally-chartered government lender that is intended to assist the general public. They created the Chenoa Fund to help lenders assist borrowers who are struggling to obtain the required 3.5% down payment for an FHA loan. They partner with specific mortgage lenders who are dedicated to helping under-served homebuyers, including San Diego Purchase Loans. Home lending has gone through significant restrictions, which has had the unfortunate consequence of limiting access for some buyers. The Chenoa Fund, however, seeks to provide responsible solutions to this issue.

Helping You Secure 100% Financing Through the Chenoa Fund

If you would like to learn more about 100% financing for your home purchase up to $453,100, contact San Diego Purchase Loans today. We’ll help you find the right financing for your specific situation, and if you need assistance with a down payment, we’ll do everything we can to find the right support.



“Chad Baker is THE BEST, most professional, understanding, HONEST person I’ve ever worked in the mortgage industry. He knows exactly what he’s talking about, will never promise something he can’t deliver, and will bend over backwards to get you what you need. I had a very unique problem qualifying and every other mortgage company I worked with assured me from the beginning that they could get me financed, and then it would all fall apart once we hit underwriting. Chad understood my circumstance from the beginning and patiently explained every step of the way. I can’t thank you enough Chad! Juliann has been great keeping me updated and making sure that everything comes together in a timely fashion. She also appreciates my sense of humor, which gives personality to a boring funding process. Thanks Juliann! I HIGHLY recommend Home Point and if I ever buy another home, will absolutely use them again.”

EXCEPTIONAL, SUPER EXCEPTIONAL! The most professional, accountable and committed mortgage service we have ever worked with. With numerous experiences in buying and refinancing homes, by far Chad Baker and his team remain at the top of our list. We feel very blessed to have located such a committed company who serve their clients with an exceptional first “first class” mindset.

Excellent service!. Recently purchased a property in Northern San Diego County. Chad and his team were recommended to me to check out. The rate he acquired was a full point & a half better than the Broker I have been using for years. His team was exceptional and did great follow through. Definitely 5 star service!”

I hope you enjoyed reading this article. It's my goal to keep you updated with the latest real estate mortgage news. I'm proud to provide you with 100% original and unique content. Subscribe now to get high quality real estate mortgage content and articles delivered directly to your inbox. Chad Baker is Regional Manager for Cross Country Mortgage. Chad is consistently recognized in the top 1% of mortgage originators in the United States 2011-2019. Got a question for Chad? Call (858) 353-8331 or submit your question online