CEDAR CITY, Utah, Jan. 11, 2019 /PRNewswire-PRWeb/ -- There has been a steep decline to homeownership rates over the last 10 years, especially among millennials, single-parent households, and minority households. In order to help borrowers sustain homeownership, CBC Mortgage Agency (CBCMA) recently entered into a partnership with the Baltimore-based nonprofit HLP, a Baltimore-based nonprofit.

Founded in 2013, CBC Mortgage Agency (http://cbcmortgageagency.org/) is a nationally chartered Housing Agency. CBC Mortgage Agency is a subsidiary of the Cedar Band Corp., a federally chartered, tribal corporation founded by the Utah-based Cedar Band of Paiutes. The partnership was created as a way to provide outreach to homeowners after purchasing.

The two organizations saw that many individuals have the income and credit history to afford and maintain a home; however, there is often a lack in ability to accumulate a downpayment. As such, the new Chenoa Fund initiative will provide homeowners specific-to-them financial advice from an HUD-approved housing counselor. This initiative will allow homeowners to receive the tools and advice necessary to keep them on track with mortgage payments.

The innovative Chenoa Fund program hopes to give more affordable homeownership access to qualified buyers by breaking through the down payment barrier. You can view recent successes from the Chenoa Fund program here: https://chenoafundreviews.com/

Chenoa Fund Rate Advantage Program:

Chenoa Fund's Rate Advantage allows borrowers to obtain a first mortgage FHA loan at a market rate along with a repayable second mortgage as a down payment, as long as they meet CBCMA's debt-to-income and credit score requirements. The second mortgage can cover the 3.5% minimum down-payment requirement when purchasing a home. With the help of a financial counselor, CBCMA clients will find it much easier to make significant monthly payment savings when compared to other methods. The Rate Advantage program truly is the first of its kind.

CBCMA's Chenoa Fund also provides other great solutions for qualified borrowers, and the Rate Advantage program falls directly in line with the mission of each of these options. The new program will give borrowers another choice as they begin their journey to owning their own home. Where some down payment assistance models may raise specific concerns, Rate Advantage addresses these while also giving borrowers immense cost savings.

"Buying a home is a cornerstone of the American Dream, and we have developed this new program to help more creditworthy buyers make homeownership a reality for themselves and their families," said Richard Ferguson, president of CBCMA.

The Rate Advantage program will give the borrower the ability to lock their first mortgage in at a market comparable rate as long as borrowers meet the minimum FICO score requirement of 640, have a debt to income ratio of 50% or less and their income is less than or equal to 115% of the median income for the county in which they live. On top of this, qualified borrowers may obtain a repayable second mortgage for the down payment.

Chenoa Fund DPA Edge Program:

There is also another option for CBCMA clients, the DPA Edge Program.

The DPA Edge Program allows eligible borrowers to apply for a forgivable second mortgage in order to cover their 3.5% minimum down payment requirement when purchasing an FHA-insured home.

"Our goal is to provide home buyers with multiple assistance options to increase the likelihood of homeownership success," Ferguson said. "We believe that by helping responsible homebuyers meet the down payment investment required for a mortgage, we can create healthier communities by improving the balance between homeownership and other housing types. That benefits our entire economy."

As lending restrictions have begun to crop up in recent years, there has become a great need for programs like Rate Advantage and DPA Edge Program. These kinds of home financing tools have opened up doors that have been otherwise closed to potential home buyers in the past, especially if they have responsible debt and good credit.

Additional information available via https://chenoafund.org
Chenoa Fund training resources can be found here: https://chenoafundtrainingresources.org/

SOURCE CBC Mortgage Agency