Quick Answer
Chenoa Fund is a national down payment assistance program administered by CBC Mortgage Agency, a federally designated Community Development Financial Institution (CDFI). It provides 3.5% or 5% of the purchase price as a second mortgage paired with an FHA first mortgage. Available in all 67 Florida counties with no income limits, no first-time buyer requirement, and a forgivable option for buyers with credit scores as low as 580.
Florida is one of the most active housing markets in the country, and the cost of homeownership continues to climb. The median home price across the state now exceeds $400,000 in many metro areas, which puts the standard 3.5% FHA down payment above $14,000 for a typical purchase.
The state offers several well-known DPA programs, including Hometown Heroes and FL Assist. But both come with restrictions that leave significant gaps. Hometown Heroes is limited to specific occupations and carries a $50 million annual budget that depletes quickly each cycle. FL Assist offers $10,000 as a deferred second mortgage but requires pairing with a Florida Housing first mortgage, which may not always offer competitive terms.
Chenoa Fund fills those gaps. It is available to any buyer who qualifies for an FHA loan in Florida, regardless of occupation, income level, or first-time buyer status. This guide covers how Chenoa Fund works in Florida, who it is best for, how it compares to the state programs, and how to apply.
How Chenoa Fund Works in Florida
Chenoa Fund operates as a second mortgage that covers your FHA down payment. The assistance is calculated as a percentage of the purchase price, not a fixed dollar amount, so it scales with the home you are buying.
There are two main program structures available to Florida buyers:
DPA Edge (Forgivable)
- Amount: 3.5% or 5% of the purchase price
- Repayment: Forgiven after 36 consecutive on-time first mortgage payments
- Credit: Minimum 580 FICO
- Rate: Slightly higher first mortgage rate (typically 0.5% to 1% above market)
- Best for: Buyers who plan to stay in the home at least 3 years and want the assistance completely erased
Repayable Second Mortgage
- Amount: 3.5% or 5% of the purchase price
- Repayment: 10-year or 30-year amortizing second mortgage
- Credit: Minimum 620 FICO
- Rate: Lower first mortgage rate compared to the forgivable option
- Best for: Buyers with 620+ credit who want the lowest possible first mortgage rate and are comfortable with a small second payment
Both options pair exclusively with FHA first mortgages. Chenoa Fund does not work with conventional, VA, or USDA loans. The property must be a primary residence, and standard FHA guidelines apply for property type, condition, and appraisal requirements.
Florida-Specific Eligibility Details
Chenoa Fund does not impose state-specific restrictions beyond standard FHA guidelines. Here is what Florida buyers need to know about eligibility:
| Requirement | Chenoa Fund in Florida |
|---|---|
| Credit Score | 580 minimum (forgivable), 620 minimum (repayable) |
| Income Limits | None. No household income caps. |
| First-Time Buyer | Not required. Repeat buyers eligible. |
| Occupation | No restrictions. Any employed or self-employed buyer. |
| Counties | All 67 Florida counties |
| Property Type | Single-family, townhomes, FHA-approved condos |
| Occupancy | Primary residence only |
| Homebuyer Education | Required for the forgivable option |
Florida FHA Loan Limits (2026)
Since Chenoa Fund pairs with FHA loans, the FHA loan limit in your county sets the ceiling on your purchase price. Florida FHA limits range from $472,030 to $667,000 depending on where you are buying. Here are the limits for major metro areas:
| County / Metro | FHA Limit (1-Unit) | 3.5% Chenoa DPA | 5% Chenoa DPA |
|---|---|---|---|
| Miami-Dade / Broward | $667,000 | $23,345 | $33,350 |
| Monroe County (Keys) | $667,000 | $23,345 | $33,350 |
| Orlando (Orange County) | $472,030 | $16,521 | $23,602 |
| Tampa / Hillsborough | $472,030 | $16,521 | $23,602 |
| Jacksonville / Duval | $472,030 | $16,521 | $23,602 |
| Cape Coral / Lee County | $472,030 | $16,521 | $23,602 |
On a $350,000 home purchase in Florida, the 3.5% Chenoa Fund option provides $12,250, which covers the entire FHA minimum down payment. The 5% option provides $17,500, leaving roughly $5,250 available toward closing costs.
Who Should Use Chenoa Fund in Florida?
Chenoa Fund is not the only DPA option in Florida, but it fills specific gaps that the state programs leave open. It is the strongest fit for buyers in these situations:
Chenoa Fund is ideal for Florida buyers who:
- Work in occupations that do not qualify for Hometown Heroes (private sector, self-employed, gig workers, remote employees)
- Have credit scores between 580 and 639, which disqualify them from most Florida Housing programs
- Are shopping when Hometown Heroes funds have been exhausted for the current cycle
- Are repeat buyers who already own a home and want to purchase a new primary residence
- Earn above the income limits set by Florida Housing programs
- Want a forgivable option with no repayment after 36 months
Chenoa Fund vs Florida DPA Programs
Understanding how Chenoa Fund compares to the major Florida programs helps you pick the right option. Here is a side-by-side breakdown:
| Feature | Chenoa Fund | Hometown Heroes | FL Assist |
|---|---|---|---|
| Amount | 3.5% or 5% | 5% (up to $35K) | $10,000 |
| Type | Forgivable or repayable | 0% deferred second | 0% deferred second |
| Min Credit | 580 (forgivable) | 640 | 640 |
| Income Limits | None | County-based | County-based |
| First-Time Buyer | Not required | Not required | Not required |
| Occupation | No restriction | Must be in qualifying list | No restriction |
| Funding Cap | No annual limit | $50M/year (depletes fast) | Subject to availability |
| Forgiveness | After 36 months | Due on sale/refi/transfer | Due on sale/refi/transfer |
Chenoa Fund vs Hometown Heroes
Hometown Heroes can offer a larger dollar amount (up to $35,000) and carries a 0% deferred repayment structure, which is attractive when funds are available. However, it is restricted to a specific list of occupations and depletes its $50 million annual budget quickly each cycle. Chenoa Fund is available year-round to any buyer regardless of occupation, making it the go-to backup when Hometown Heroes is unavailable or when your job does not qualify.
Chenoa Fund vs FL Assist
FL Assist provides a flat $10,000 as a 0% deferred second mortgage. It requires pairing with a Florida Housing first mortgage and has income limits. Chenoa Fund has no income limits and provides percentage-based assistance that scales with purchase price. On homes above $285,000, Chenoa Fund at 3.5% already exceeds FL Assist's $10,000 in dollar terms.
How to Apply for Chenoa Fund in Florida
Chenoa Fund is not applied for directly. You work through an FHA-approved lender who is enrolled with CBC Mortgage Agency's Chenoa Fund program. Here is the step-by-step process:
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1
Check Your Eligibility
Use our free Florida eligibility tool to confirm you meet the basic requirements. You will need your credit score range, target purchase price, and county.
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2
Connect with a Chenoa Fund-Approved Lender
Not all FHA lenders are enrolled with Chenoa Fund. Your lender must be specifically approved by CBC Mortgage Agency. Ask upfront whether they participate in Chenoa Fund programs.
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3
Complete Homebuyer Education
The forgivable (DPA Edge) option requires completion of a HUD-approved homebuyer education course. Online courses through eHome America or Framework are accepted. This can typically be completed in a few hours.
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4
Get Pre-Approved and Find a Home
Your lender structures the Chenoa Fund DPA into your FHA loan package during pre-approval. Once approved, you shop for a home within FHA loan limits for your Florida county.
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5
Close and Move In
The Chenoa Fund DPA is disbursed at closing as a second mortgage alongside your FHA first mortgage. There is no separate closing process. Your lender handles the entire transaction.
Chenoa Fund Availability by Florida City
Chenoa Fund is available statewide in Florida with no geographic restrictions. Here are DPA resources for major Florida metro areas:
Frequently Asked Questions
Does Chenoa Fund work in Florida?
Yes. Chenoa Fund is a national program available in all 67 Florida counties. There are no geographic restrictions. Any FHA-approved lender in Florida who is enrolled with Chenoa Fund can originate these loans.
How much down payment assistance does Chenoa Fund provide in Florida?
Chenoa Fund provides either 3.5% or 5% of the purchase price. On a $350,000 Florida home, that is $12,250 to $17,500 in assistance. The 3.5% option covers the full FHA minimum down payment. The 5% option adds extra for closing costs.
What credit score do I need for Chenoa Fund in Florida?
The forgivable option requires a minimum 580 credit score. The repayable second mortgage option requires a minimum 620 credit score. Chenoa Fund is one of the few DPA programs that accepts scores in the 580-619 range.
Is Chenoa Fund forgivable in Florida?
Yes. The forgivable option (called the DPA Edge) is forgiven after 36 months of on-time payments. You must maintain the home as your primary residence during that period. The repayable option is structured as a 10-year or 30-year second mortgage.
Do I have to be a first-time homebuyer for Chenoa Fund in Florida?
No. Chenoa Fund does not require first-time homebuyer status. Repeat buyers and current homeowners are eligible as long as the property will be their primary residence.
Are there income limits for Chenoa Fund in Florida?
No. Chenoa Fund does not impose household income limits. Eligibility is based on credit score, FHA loan qualification, and primary residence occupancy. This makes it accessible to a wider range of Florida buyers than many state programs.
How is Chenoa Fund different from Florida Hometown Heroes?
Florida Hometown Heroes offers up to 5% (capped at $35,000) but is restricted to specific occupations like teachers, nurses, law enforcement, and military. It also has a limited $50 million annual budget that runs out quickly. Chenoa Fund has no occupation requirement, no income limits, and no annual funding cap.
What are the FHA loan limits in Florida for Chenoa Fund?
Florida FHA loan limits range from $472,030 in most counties to $667,000 in high-cost areas like Miami-Dade, Broward, and Monroe counties. Since Chenoa Fund pairs with FHA loans, these limits determine your maximum purchase price.
Can I use Chenoa Fund with FL Assist or other Florida programs?
You typically cannot stack Chenoa Fund with FL Assist ($10,000 deferred second) because both programs use a second mortgage position. However, Chenoa Fund can be a strong alternative when FL Assist funds are depleted or when you do not qualify for state programs.
How do I apply for Chenoa Fund in Florida?
Apply through a Chenoa Fund-approved lender in Florida. Step 1: Check your eligibility using our free tool. Step 2: Connect with a participating lender. Step 3: Complete homebuyer education if required by FHA. Step 4: Get pre-approved and find a home. The DPA funds are disbursed at closing alongside your FHA first mortgage.
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