CBC Mortgage Chenoa Fund FHA Forgivable DPA: Complete Guide 2026
The Chenoa Fund from CBC Mortgage Agency gives Las Vegas buyers up to 3.5% of their purchase price in forgivable down payment assistance layered on top of an FHA loan. With Clark County’s median home price near $430,000 in early 2026, that translates to roughly $15,050 in assistance that can be fully forgiven after 36 consecutive on-time mortgage payments for income-qualified borrowers.
Key Takeaways
- The Chenoa Fund covers the FHA 3.5% down payment requirement, enabling zero-down purchase for qualifying buyers
- Forgiveness occurs after 36 consecutive on-time payments for borrowers at or below 115% of Area Median Income
- Clark County’s 2025 HUD income limit of $89,700 for a family of four means the forgiveness threshold is approximately $103,155 (115% of AMI), per HUD AMI datasets
- Minimum credit score is 580, consistent with FHA guidelines from HUD
- Seller concessions up to 6% of purchase price can cover closing costs, making this a near-zero cash-to-close option
What Is the CBC Mortgage Chenoa Fund FHA Forgivable DPA?
The Chenoa Fund is a national DPA program from CBC Mortgage Agency that provides 3.5% of the home purchase price as a forgivable second mortgage layered behind an FHA first loan. Since 2013, the program has helped more than 50,000 households nationally, per CBC Mortgage Agency. Income-qualified buyers earn full forgiveness after 36 consecutive on-time first-mortgage payments.
The program targets the single biggest barrier to homeownership: the upfront cash requirement. FHA requires 3.5% down for borrowers with credit scores of 580 or above, per HUD’s FHA guidelines. For a $430,000 home in the Las Vegas valley, that is $15,050 that most first-time buyers cannot assemble quickly. The Chenoa Fund eliminates that gap.
The second mortgage sits behind the primary FHA loan in lien position. No separate monthly payment is required on the DPA portion during the forgiveness period for the income-qualified track. If the borrower sells or refinances before reaching 36 consecutive on-time payments, the outstanding balance becomes due at closing.
Data note: CBC Mortgage Agency reports 50,000+ families assisted nationally since inception in 2013. Clark County’s FY2025 Area Median Income is $89,700 for a four-person household per HUD AMI datasets. The forgivable DPA track requires household income at or below 115% of that figure, or approximately $103,155. Verify current income caps with an approved Chenoa Fund lender before application, as limits are updated annually.
How the 36-Month Forgiveness Schedule Works
The forgivable structure converts the 3.5% second mortgage into a zero-cost assistance when the borrower makes 36 consecutive on-time first-mortgage payments and household income stays at or below 115% of AMI at origination. Most borrowers who remain current for three years owe nothing on the DPA at forgiveness, per CBC Mortgage Agency program guidelines. The key trigger is payment consistency, not simply time elapsed.
Here is how the outstanding DPA balance declines against payment milestones on a $430,000 purchase:
Missing a single payment resets the forgiveness clock. The program requires 36 consecutive on-time payments, not simply 36 payments over any timeframe. A late payment at month 34 restarts the count from zero, so buyers who are prone to payment variability should consider whether a standard DPA loan structure offers better protection.
If household income rises above 115% of AMI after origination but before month 36, the forgiveness structure remains intact, because the income qualification is measured at origination, not throughout the forgiveness period. Buyers uncertain about their income trajectory can close with confidence on that point.
Eligibility Requirements for Las Vegas Buyers
To qualify for the income-based forgivable Chenoa Fund track, buyers need household income at or below 115% of HUD’s Clark County AMI, a minimum 580 credit score, and a primary residence purchase. As of 2025, that income ceiling is approximately $103,155 for a four-person household, per HUD AMI data, which covers most first-time buyers in the Las Vegas valley.
Income and Credit Thresholds
| Requirement | Chenoa Forgivable Track |
|---|---|
| Minimum credit score | 580 |
| Max debt-to-income ratio | 45% (up to 50% with compensating factors) |
| DPA amount | 3.5% of purchase price |
| Loan type | FHA 30-year fixed |
| Income cap, 4-person HH | ~$103,155 (115% of AMI) |
| Occupancy | Primary residence only |
| First-time buyer required | No |
Understanding your credit profile before applying will save time and protect your rate. Review the full credit score requirements for home buying to see how scores between 580 and 620 affect FHA terms.
Property Eligibility
Single-family homes, FHA-approved condominiums, and townhomes throughout Clark County all qualify. The property must pass an FHA appraisal covering both value and physical condition. Las Vegas resale homes built before 1978 require a lead-paint disclosure and may need minor repairs before FHA clearance.
Rate Advantage Track for Higher-Income Buyers
Borrowers above the 115% AMI cap can still access the Chenoa Fund through the Rate Advantage product, which structures the 3.5% DPA as a second mortgage with a higher interest rate rather than forgiveness. This option has no income limit but carries an ongoing payment obligation until the second mortgage is paid off or forgiven through sale or refinance.
Income limit context: Clark County’s FY2025 HUD AMI for a family of four is $89,700. The forgivable track caps at 115% of that figure, or approximately $103,155. One-person households cap near $72,220 and two-person households near $82,535 at 115% AMI. Limits are updated each spring and differ by household size. Confirm the current limits with an approved Chenoa Fund lender before you begin your home search.
Chenoa Fund vs. Other Nevada DPA Programs
Nevada first-time buyers have several DPA choices, including the Nevada Housing Division’s Home Is Possible and municipality-level grants. The Chenoa Fund’s key advantage is accepting a 580 minimum credit score and requiring no first-time buyer status, while Home Is Possible’s minimum is 640 and the program is restricted to qualifying Nevada residency. The National Association of Realtors reports that credit and savings barriers remain the top obstacles cited by first-time buyers nationally, making lower score thresholds a meaningful differentiator.
Home Is Possible from the Nevada Housing Division also accepts FHA and conventional loans and can layer with Las Vegas-specific municipality grants for buyers in certain zip codes. Chenoa Fund is the better fit when credit is below 640 or when the buyer has previously owned a home. For borrowers with a 640 or higher score and first-time buyer status, Home Is Possible’s conventional track avoids FHA mortgage insurance premiums entirely, which saves $150 to $200 monthly on a $430,000 purchase.
Learn more about the Home Is Possible Nevada program and compare all available options in the Nevada DPA programs guide. Explore further in our nevada down payment assistance programs.
Step-by-Step: Applying for Chenoa Fund in Las Vegas
Applying for the Chenoa Fund takes 30 to 45 days from initial contact to closing, aligning with standard FHA timelines per HUD’s origination guidelines. Buyers must work with a CBC Mortgage-approved lender, complete a HUD-approved homebuyer education course, and provide the same documentation as any FHA loan. Getting pre-qualified before house hunting is essential given Las Vegas’s competitive resale inventory.
Step 1: Verify Income and Credit Eligibility
Pull free credit reports at AnnualCreditReport.com and calculate your household income against the 115% AMI limit. If your score falls below 620, review strategies to raise it before applying, because a score jump from 580 to 620 can lower your FHA rate meaningfully. See our credit score buying guide for a timeline-based improvement plan.
Step 2: Find a CBC Mortgage-Approved Lender
Not every FHA lender participates in the Chenoa Fund. Use the lender locator on cbcmortgageagency.com or ask your buyer’s agent for a referral to an approved loan officer in Nevada.
Step 3: Complete Homebuyer Education
A HUD-approved homebuyer education certificate is required before closing. The Nevada Housing Division offers an online course that takes six to eight hours. Several Las Vegas housing counseling agencies also offer in-person sessions for buyers who prefer guided instruction.
Step 4: Gather Documentation
- Two years of W-2s or tax returns (1099s for self-employed buyers)
- 30 days of recent pay stubs
- Two months of bank statements (all pages)
- Government-issued photo ID
- Landlord contact information or 12 months of rental payment records
Step 5: Shop for a Home and Write an Offer
Search for FHA-eligible properties in Clark County. Most single-family homes built after 1980 qualify without condition issues. Condominiums must appear on HUD’s approved condo list. Townhomes are typically eligible without additional review. Use our buyer search tool to browse active listings in Henderson, Summerlin, and North Las Vegas.
Step 6: Underwriting and Closing
Both the primary FHA loan and the Chenoa Fund second mortgage go through underwriting simultaneously. The additional DPA layer adds minimal processing time when the lender has Chenoa Fund experience. Plan for closing costs of 2% to 3% of the purchase price, which seller concessions can cover.
Closing Costs and Total Cash to Close
Even with the down payment covered, Las Vegas buyers need to budget for closing costs. Nevada’s typical closing costs run 2% to 3% of the purchase price – roughly $8,600 to $12,900 on a $430,000 home – based on ATTOM Data closing cost benchmarks. With the FHA-allowed 6% seller concession, buyers who negotiate well can approach a near-zero cash-to-close transaction. Review the complete Las Vegas closing cost breakdown before writing your first offer.
FHA mortgage insurance adds to the monthly payment. Buyers pay an upfront MIP of 1.75% of the loan amount (commonly rolled into the loan) and an annual MIP of 0.55% on a 30-year loan with less than 10% equity. On a $430,000 purchase with the Chenoa Fund covering the 3.5% down, the FHA first mortgage is $414,950. Annual MIP is approximately $2,282 per year, or $190 per month. That premium stays for the life of the FHA loan unless the buyer later refinances into a conventional mortgage after reaching 20% equity.
See all down payment assistance options for Las Vegas first-time buyers and compare programs side by side before committing to a lender. Read more in our related guide: first time home buyer assistance programs. Explore further in our down payment.
Frequently Asked Questions
Does the Chenoa Fund forgiveness create a taxable event?
The forgiven second mortgage balance is generally not treated as taxable income on a primary residence, consistent with IRS guidance on qualified principal residence debt. Buyers should confirm their specific situation with a tax professional. IRS Publication 523 addresses debt exclusions related to primary residence transactions.
What happens if I miss a payment before month 36?
Missing a payment resets the forgiveness clock. The program requires 36 consecutive on-time payments, not simply 36 payments over any period. A single late payment at month 34 restarts the count from zero, so buyers should build a payment buffer or automatic payment setup before closing.
Can I use the Chenoa Fund if I previously owned a home?
Yes. The Chenoa Fund does not require first-time buyer status. A previous homeowner who currently does not own a primary residence and meets income and credit thresholds can qualify for the forgivable track.
Can the Chenoa Fund be combined with seller concessions to eliminate cash to close?
Yes. FHA permits sellers to contribute up to 6% of the purchase price toward buyer closing costs. Combined with the 3.5% DPA covering the down payment, a buyer who negotiates a 4% seller concession on a $430,000 home could reach closing with minimal out-of-pocket expense. Pair this strategy with the DPA advantage guide for a full picture of layering options. For more on this topic, see our dpa loan. Explore further in our dpa grant.
Is the Chenoa Fund available for new construction homes in Las Vegas?
New construction qualifies as long as the property passes FHA appraisal and meets FHA property standards. Builders in Summerlin and Henderson frequently sell FHA-eligible homes, but some builder-preferred lenders do not participate in the Chenoa Fund. Confirm lender approval before signing a new construction purchase agreement.
Ready to find Las Vegas homes that work with Chenoa Fund financing? Search available properties or explore all Nevada down payment assistance programs to compare your options before choosing a lender.
