2026 Guide: How to Buy a Home in San Diego with $0 Down using the Chenoa Fund

Bridge the gap to homeownership with 3.5% to 5% assistance, even with a 600 credit score

Time to Say YES – Keys to Homeownership Await

The Chenoa FundTM from CBC Mortgage Agency helps make homeownership possible for creditworthy borrowers who may lack the funds for a down payment. This down payment assistance program, offered through approved lenders, provides a second mortgage to cover either 3.5% or 5% of the purchase price or appraised value of the home.

Chenoa Fund – Helping Families Achieve Homeownership

THE CHENOA FUND™ IS A NATIONAL DOWN PAYMENT ASSISTANCE PROGRAM PROVIDED BY CBC MORTGAGE AGENCY, A FEDERALLY CHARTERED GOVERNMENTAL ENTITY. THE CHENOA FUND™ PROGRAM IS DESIGNED TO INCREASE ACCESS TO HOMEOWNERSHIP FOR CREDITWORTHY FAMILIES.

The Chenoa Fund down payment assistance program increases access to affordable housing and homeownership for creditworthy borrowers. CBC Mortgage Agency partners with reputable lenders to provide down payment assistance in the form of second mortgages to qualified buyers.

Chenoa Fund believes that responsible homeownership strengthens families and communities. While homeownership isn’t right for everyone, we help remove barriers for buyers who have the income, credit, and ability to maintain a home but lack funds for a down payment. Our down payment assistance gives creditworthy borrowers a path to homeownership.

Chenoa Fund provides 3.5% or 5% down payment assistance for FHA loans to help borrowers meet the minimum investment required. By assisting buyers who can afford mortgage payments but face hurdles saving for a down payment, we improve housing stability and availability for all.

Check My Chenoa Eligibility Now

Contact Us at https://homesinsdcounty.com/contact/contact to learn more about these and other down payment assistance mortgage options. Our experienced team is ready to help you understand the program and get started on your path to homeownership.

An Affordable Housing Program Dedicated To Sustainable Homeownership

Who We Are

Chenoa Fund™ is a down payment assistance program provided through CBC Mortgage Agency™ (CBCMA), which is one of nine tribally owned enterprises of the Cedar Band Corporation. CBCMA’s mission is to increase nationwide affordable and sustainable homeownership, with a focus on creditworthy, low- and moderate-income individuals.

Chenoa Fund Provides

  • Homebuyers 3.5% or 5% down payment assistance
  • Post-closing for homebuyer assistance
  • Fast approval process without review delays
  • Minority opportunities with UHOUSI and the Kani Urban Indian Housing initiative
  • The ability to become a first-time homebuyer and build wealth

Chenoa Fund offerings:

  • 3.5% or 5% down payment assistance
  • FHA program offerings with a minimum credit score of 600
  • Industry-leading customer service that guides homebuyers through the home buying process
  • 18 months of post purchase counseling for homebuyers
  • Minority-focused initiatives to help educate underserved communities about building wealth through sustainable homeownership

Borrowers have two options for the down payment assistance loan:

  1. Repayable Loan: Features a 10-year term with a fixed interest rate 1% higher than the first mortgage rate, structured with fully amortized monthly payments.
  2. Forgivable Loan: Features a 30-year term with a 0% interest rate and no monthly payments. For both the 3.5% and 5% assistance options, the entire balance is fully forgiven after 36 consecutive, on-time monthly payments on your first mortgage.

To qualify, borrowers need a minimum credit score of 600 and must meet Chenoa FundTM income and other eligibility criteria. The program helps creditworthy buyers overcome the biggest hurdle to homeownership — the down payment. By assisting responsible homebuyers, Chenoa FundTM aims to build stronger communities through improved housing stability.

Feature Forgivable Option (Recommended) Repayable Option
Down Payment Covered 3.5% or 5% 3.5% or 5%
Monthly Payment $0 (No payment) Fixed Monthly Payment
Interest Rate 0% Interest 1% higher than 1st Mortgage
Forgiveness Term 36 consecutive, on-time payments” for the 5% option. N/A (10-year term)

The Chenoa FundTM down payment assistance program has the following guidelines:

  • Down payment assistance is available in all states except New York.
  • Borrowers can receive 3%, 3.5%, or 5% down payment assistance based on the specific Chenoa Fund product.
  • Origination fees and lender charges must comply with the 3% points and fees rule for Qualified Mortgages under TRID regulations.
  • The first mortgage must be sold to CBC Mortgage Agency.
  • The delegated underwriter approves the loan and appraisal for closing by the approved lender.
  • Eligible properties include attached and detached single family residences, PUDs, townhomes, condos, and modular homes.
  • Two-unit properties are allowed only with certain DPA Edge products. Three to four units are not eligible with any product.
  • Manufactured homes may qualify for FHA loans in some cases.
  • HPML (Rebuttable Presumption) loans are permitted on certain products, but High-Cost Mortgages are not allowed.

Through Chenoa Fund™, CBC Mortgage Agency offers down payment assistance products that are issued in conjunction with FHA-insured first mortgages.

Chenoa Fund Down Payment Assistance for FHA Loans

3.5% and 5% DPA
600+ FICO Score

Chenoa Fund offers 3.5% and 5% down payment assistance (DPA) for borrowers with a minimum credit score of 600 using an FHA-insured first mortgage.

Repayable Option:

  • 10-Year Term
  • Interest rate 1% higher than the first mortgage rate
  • Fully amortized with a fixed interest rate
  • Requires monthly payments

Forgivable Option:

  • 0% Interest Rate (0% APR)
  • No monthly payments
  • 30-Year Term
  • Forgiveness Conditions: Both the 3.5% DPA and the 5% DPA options are completely forgiven after 36 consecutive, on-time first mortgage payments. The forgiveness period resets if a payment is missed, but the borrower has the full 30-year term to meet the 36-payment requirement.
  • Must be repaid upon transfer of ownership or refinance if the 36-month forgiveness criteria have not yet been met.

San Diego Reality Check : in the current 2026 San Diego market, the 600 FICO score requirement is the #1 tool for first-time buyers competing against all-cash offers.

BORROWER SUCCESS PROGRAM AT A GLANCE

Here at CBC Mortgage Agency, we are driven by a single goal; to do our part in making the world a better place for all.  As a federally chartered, public-purpose driven government agency, we work to increase affordable and sustainable homeownership opportunities for credit-worthy individuals who lack down payment funds. 

We have partnered with Money Management International (MMI), a non-profit Consumer Credit Counseling Agency, who shares our values, mission and commitment for service excellence. To find out more about MMI, please visit https://www.moneymanagement.org

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Your Support Doesn't End at Closing: The 18-Month Success Program. Your Support Team at Homes in SDCounty and MMI will provide you with monthly support, education material and tools that are focused on being a successful homeowner.

The Chenoa Fund™ program has not been reviewed or approved by HUD or FHA. This site is for information purposes, The information contained therein is not a solicitation to lend money to consumers. For licensing information, go to: www.nmlsconsumeraccess.org. Illinois Residential Mortgage License #MB.6761292. Illinois Department of Financial and Professional Regulation, Division of Banking, 100 West Randolph, 9th Floor, Chicago, IL 60601 – 1-888-473-4858. Georgia Residential Mortgage Licensee, License # 1186381.

Frequently Asked Questions About the Chenoa Fund

Q: Do I have to be a first-time homebuyer to use the Chenoa Fund? A: No. Unlike many down payment assistance programs, the Chenoa Fund does not require you to be a first-time homebuyer. Move-up buyers can also utilize this program as long as they meet the standard FHA eligibility criteria.

Q: What is the minimum credit score required for Chenoa Fund assistance? A: The minimum credit score requirement is a 600 FICO score. This makes the program highly accessible for buyers looking to compete in the active San Diego real estate market without waiting years to build a massive cash reserve.

Q: Does the forgivable option require a monthly payment? A: No. The forgivable second mortgage option features a 0% interest rate and requires $0 monthly payments. The entire balance is completely forgiven once you make 36 consecutive, on-time monthly payments on your first mortgage.

Q: Is the Chenoa Fund available for property types other than single-family homes? A: Yes. Eligible property types include attached and detached single-family residences, Planned Unit Developments (PUDs), townhomes, condos, and modular homes. It cannot be used for multi-unit properties (3–4 units) or properties located in the state of New York.

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