Chenoa Fund Stacking: Combine DPA Programs in Tampa Bay (2026)

Why does the Chenoa Fund matter for Tampa Bay buyers?

Most down payment assistance programs in Florida have income limits. Hometown Heroes caps eligibility at income levels tied to the area median. County SHIP programs have even stricter limits. The Chenoa Fund stands apart because its most popular products have no income limit at all.

This opens the door for buyers earning $100,000 to $150,000+ who make too much for income-restricted programs but still struggle to save a 3.5% FHA down payment while paying Tampa Bay rents. A household earning $120,000 does not necessarily have $15,000 sitting in savings when rent, student loans, car payments, and childcare consume most of their income.

The Chenoa Fund overview covers the basic program structure. For a side-by-side comparison of all DPA programs available in your county, see tampabaydownpayment.com's program comparison. This guide focuses on how to stack it with other programs and strategies for maximum benefit.

How does the Chenoa Fund work?

The Chenoa Fund provides 3.5% of the purchase price as a second mortgage to cover the FHA minimum down payment. The buyer takes out an FHA first mortgage for the remaining 96.5% of the purchase price.

• FHA down payment required: 3.5% = $14,000
• Chenoa Fund second mortgage: $14,000 (covers the entire down payment)
• FHA first mortgage: $386,000
• Cash needed at closing: closing costs and prepaid items only

The Chenoa Fund second mortgage has two options:

Forgivable: After 36 consecutive on-time payments on the first mortgage, the Chenoa Fund second mortgage is forgiven entirely. You make no payments on the second mortgage during those 36 months. If you sell, refinance, or miss a payment before the 36-month mark, the second mortgage becomes due.

Repayable: 0% interest rate, 10-year term, with monthly payments. This option is available to borrowers with slightly lower credit scores and provides a predictable repayment schedule.

How can Tampa Bay buyers stack Chenoa with other programs?

The power of the Chenoa Fund is in the stacking. Here are strategies that work:

Chenoa Fund + seller concessions. The Chenoa Fund covers your down payment. A seller concession of 2% to 3% covers most or all of your closing costs. On a $400,000 purchase, a 3% seller concession is $12,000, which goes directly toward closing costs and prepaid items. Combined with the Chenoa Fund covering the down payment, your total out-of-pocket can approach zero.

Chenoa Fund + lender credits. Some lenders offer credits toward closing costs in exchange for a slightly higher interest rate. A 0.5% rate increase might generate $2,000 to $3,000 in lender credits. Combined with Chenoa Fund for the down payment and seller concessions, this can further reduce your cash to close.

Chenoa Fund + Hometown Heroes (where allowed). Some lenders can layer these programs. The Chenoa Fund covers the 3.5% down payment, and Hometown Heroes (5% of loan amount) covers closing costs and prepaids. This double-layer stacking can result in excess assistance that reduces your total cash needed to near zero. Our FHA stacking guide explains the coordination required.

What are the trade-offs of using the Chenoa Fund?

Slightly higher interest rate. Chenoa Fund FHA loans typically carry interest rates 0.25% to 0.75% above market FHA rates. On a $386,000 loan, a 0.50% higher rate adds roughly $113 per month to your payment. Over 30 years, that is approximately $40,680 in additional interest. You need to weigh this against the $14,000 you did not have to save for a down payment. For most buyers who would otherwise rent for 2 to 3 additional years saving up, the math favors taking the slightly higher rate now.

Second mortgage on title. The Chenoa Fund second mortgage appears on your title and must be addressed if you refinance. If you refinance before the 36-month forgiveness period, the second mortgage becomes due. This limits your ability to take advantage of rate drops in the first 3 years.

Not all lenders participate. The Chenoa Fund works through a network of approved lenders. Not every FHA lender is approved for Chenoa Fund products. Finding a lender who participates in both Chenoa and Hometown Heroes can be challenging. Ask specifically about Chenoa Fund participation during your preapproval process.

Who is the ideal Chenoa Fund buyer?

The Chenoa Fund is best suited for buyers who earn too much for income-restricted DPA programs, have good credit (620+) but limited savings, plan to stay in the home for at least 3 years to reach forgiveness, and are comfortable with a slightly above-market interest rate.

It is less ideal for buyers who qualify for Hometown Heroes (which has lower rate premiums), have enough savings for the down payment without assistance, or plan to sell or refinance within 3 years.

Your agent and lender should evaluate all available programs and recommend the combination that produces the lowest total cost. Sometimes the Chenoa Fund is the best option. Sometimes Hometown Heroes or HFA Preferred Plus offers a better deal. The right answer depends on your specific income, credit score, savings, and timeline. Understanding how interest rates interact with DPA helps you evaluate the trade-offs.

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The Chenoa Fund removes the biggest barrier to homeownership for buyers who earn too much for income-restricted programs but have not yet saved a full down payment. Call Barrett Henry, REALTOR, at (813) 733-7907. With 23+ years of real estate experience, Barrett works with Chenoa Fund approved lenders and coordinates stacking strategies across Tampa Bay.

Resources for First-Time Buyers

• Chenoa Fund overview
• FHA stacking with Hometown Heroes
• Hometown Heroes program guide
• HFA Plus forgivable loan
• how much down payment do you need
• eligibility checker