Most down payment assistance is local — run by a state, county, or city. But a handful of programs operate nationally, and they are worth knowing about because they are available in many markets and work through regular mortgage lenders. Here is a plain-language look at the big national names: the Chenoa Fund, the National Homebuyers Fund, and the grant programs run by large banks.
A note before we start: this is educational background, not an offer of any specific program. Details change, and lender participation varies by market. Verify current guidelines — programs and funding change frequently.
The Chenoa Fund: FHA-paired assistance
The Chenoa Fund is a nationally advertised down payment assistance program designed to pair with FHA mortgages. Its concept is straightforward: the assistance is delivered as a second mortgage alongside your FHA first mortgage, and it is structured either as a forgivable second or a repayable second. According to the fund's public materials, there is no income cap — eligibility is driven more by credit and the underlying FHA loan approval than by household income.
Why does that matter? Many state programs cap income at levels that exclude solidly middle-class buyers. A program without an income cap opens the door for buyers who earn too much for local programs but still have not saved a large down payment. The tradeoff, as with any second mortgage, is in the structure: a forgivable second rewards you for staying put through the forgiveness period, while a repayable second adds a monthly payment and counts in your debt-to-income ratio. If you are considering Chenoa, ask the lender for the exact second-mortgage terms in writing — forgiveness schedule, interest rate if any, and what happens on sale or refinance.
National Homebuyers Fund: Nonprofit grants
The National Homebuyers Fund (NHF) is a nonprofit organization that provides down payment and closing cost assistance as grants — money that does not have to be repaid. Publicly, the program has been described as offering assistance up to 5 percent of the home price, and it does not necessarily require you to be a first-time buyer.
There is an important catch, though: NHF works through participating lenders. You cannot simply apply on your own — you need a loan officer whose company is set up with the program. That is true of many national programs, and it is one of the biggest practical hurdles in down payment assistance generally: the program exists, but your lender has to know how to originate it. When you shop for a lender, ask directly which national assistance programs they are signed up with. The answer tells you a lot about how much DPA business they actually do.
Big-bank grant programs: Real money, with a string attached
Several of the country's largest banks run grant programs offering thousands of dollars toward down payments or closing costs. These are real grants, not loans, and they can meaningfully reduce the cash you need at closing.
The string attached is straightforward: you generally have to get your mortgage from that bank. These programs are customer-acquisition tools as much as they are community programs, and they are often limited to select markets or specific neighborhoods. That does not make them bad deals — a few thousand dollars is a few thousand dollars — but it does mean you should compare the bank's full mortgage offer (rate, fees, and service) against what independent lenders offer. A grant attached to a more expensive loan is not the bargain it appears to be. And because these programs come and go with corporate priorities, confirm the program is currently active in your market before building your plans around it.
How to think about national vs. local programs
National programs have two big advantages: they are available in many places, and their rules are relatively standardized, which makes them easier to research. Local programs — state, county, and city — often have better terms or larger dollar amounts, but they are harder to find and their funding can be limited.
The smartest approach is to look at both. Start by asking a knowledgeable lender which national programs they originate — that takes one conversation. Then check your state housing finance agency and your city or county housing department for local options, which are sometimes undersubscribed simply because buyers do not know they exist. The best deal is often a combination: a national program your lender knows well, stacked with local help they can guide you toward.
Questions to ask about any national program
- Is the assistance a grant, a forgivable second, or a repayable second?
- What triggers repayment — sale, refinance, moving out? Get the schedule in writing.
- Is there a shared-appreciation clause?
- Must I use a specific lender or loan type to get it?
- Is the program currently funded and accepting applications?
- What homebuyer education or counseling is required?
DownPaymentAssistanceCasa.com is published by Vision One Mortgage, NMLS #7861, where we help buyers sort through national and local assistance options and find the combination that fits. If you want a plain-English walkthrough of what is available for your situation, call (949) 253-3480.
Programs and funding change frequently — always verify current guidelines with the program provider and your lender before applying.
Program guidelines change frequently. Verify the current guidelines and matrix before locking or quoting. This is educational information, not a commitment to lend. Equal Housing Opportunity.