National and wholesale down payment assistance programs vary in loan type, eligibility, second mortgage terms and lender access. Here’s how they work, a public example, and how to compare total cost.
Besides Utah Housing, some down payment assistance (DPA) is offered by national or regional programs that lenders access through approved wholesale or correspondent relationships. These can be useful, but they aren’t interchangeable. Each one has its own lender approval requirement, loan type, credit and income rules, and its own second mortgage structure. The best way to compare them is on total cost and risk, not on the size of the assistance.
This guide explains how these programs work and how to compare them, using one publicly documented example. It isn’t a list of programs I currently offer. Program access depends on the lender’s approvals and changes over time, so any specific program has to be confirmed for your loan.
How wholesale DPA programs differ from a state program
Who offers it: a state housing finance agency like Utah Housing works through its own approved Participating Lenders. National programs work through lenders approved by that program. In both cases, a lender can only offer a program it’s approved for.
What it pairs with: many programs are built around one first mortgage type, often FHA, and sometimes conventional. The assistance and the first mortgage are usually priced together.
How it’s funded: some programs depend on bond or appropriated funds that can run out. Others say they’re funded year-round. Availability and pricing can still change.
Who qualifies: income limits, first-time buyer rules, minimum credit scores and education requirements vary widely by program.
One public example: Chenoa Fund (CBC Mortgage Agency)
The Chenoa Fund is a down payment assistance program from CBC Mortgage Agency, a tribally owned enterprise of the Cedar Band Corporation based in South Jordan, Utah. On its own website, checked November 7, 2026, it says:
It offers 3.5% or 5% of the down payment needed to buy a home with an FHA loan.
Both a forgivable option and a repayable option are available for the assistance second.
The minimum credit score is 600, using the lowest middle score on the loan. Borrowers below a certain score may need homeownership counseling.
Its program pages say there are no income limits, and that you don’t have to be a first-time homebuyer.
It’s available in all states except New York, through approved lenders on a correspondent basis, and it says the program isn’t bond-funded and doesn’t run out of funds.
It allows gift funds or other assistance to be combined with it.
Important caveats: Chenoa’s lender materials also reference program-specific overlays, including how area median income is calculated. Its public pages don’t list the forgivable or repayable terms or current pricing. A lender has to be approved with CBC Mortgage Agency to offer it. If you’re interested, ask your lender for the current program guide and the actual terms for your file.
How to compare DPA programs side by side
Assistance type: grant, forgivable second, deferred second, or repayable second?
First mortgage rate and fees: what’s the rate and APR with the program versus without it? Assistance paired with a higher rate can cost more over time.
Second mortgage terms: the rate, term, monthly payment, and the forgiveness or repayment triggers.
Mortgage insurance: FHA mortgage insurance and conventional mortgage insurance work differently, which affects the total payment.
Cash to close: does the assistance cover closing costs and prepaid items, or only the down payment?
Eligibility: credit score, income, first-time buyer status, property type, occupancy and education.
Exit: what happens when you sell or refinance, and will the provider subordinate?
Timing and funding: can it be reserved, and for how long? Is funding first-come, first-served?
Compare three paths, not just one
For many buyers the honest comparison is:
A low down payment loan with no assistance, such as 3% down conventional or 3.5% down FHA, using savings, a gift or seller credits.
A state program, such as Utah Housing’s first mortgage with DPA.
A national or wholesale DPA program available through your lender.
Look at the monthly payment, cash to close, and what you’d owe if you sold in 3, 5 or 10 years. If the assistance only saves a few thousand dollars at closing but adds a higher rate or a sizable second, waiting and saving, or using a gift, could be the better deal.
Rules behind conventional assistance
When the first mortgage is conventional, the second generally must meet Fannie Mae’s Community Seconds or Freddie Mac’s Affordable Seconds rules, including who may provide it and a rate cap of 2% above the first mortgage. Your lender checks that the program qualifies.
Questions to ask your lender
Which DPA programs are you approved to offer, and which ones do I qualify for?
Can you show me a side-by-side Loan Estimate with and without the assistance?
Is the assistance a grant or a second mortgage? Is it forgivable, deferred or repayable, and on what terms?
Does using the program change my first mortgage rate or fees?
What will I owe if I sell or refinance early?
Is there a counseling or education requirement, and when does it need to be done?
For how each type of assistance works, read Down Payment Assistance: Grants vs Forgivable, Deferred and Repayable Seconds. For Utah programs, see Utah Housing Loans and Down Payment Assistance and Davis County Homeownership Assistance.
FAQ
Are wholesale DPA programs better than Utah Housing?
Not automatically. It depends on your eligibility, the rate and fees, and the second mortgage terms. Compare them on the same scenario.
Can any lender offer any program?
No. A lender has to be approved by the program provider, and programs can change or stop being offered.
Does DPA mean zero out of pocket?
Not necessarily. Earnest money, inspections, the appraisal and closing costs not covered by the assistance may still be your responsibility.
Will the assistance show up as a loan on my credit?
A second mortgage is a recorded lien and a debt. How it’s reported depends on the program and servicer. Ask before you commit.
Next step
If you want to compare DPA options for your situation, contact me. I’ll confirm which programs are actually available for your loan before we rely on any of them. Please don’t send your Social Security number or financial documents through the contact form or by email. Related reading: FHA vs Conventional Loans and How Much House Can I Afford?.
Sources
Sources checked November 7, 2026. Jimmy Hobson, NMLS #1514540, UMortgage, powered by NEXA Lending (NMLS #1660690). This article is general education. Programs named here are examples, not endorsements or offers, and availability through any lender must be confirmed. It is not a loan approval or a commitment to lend.
Have a Mortgage Question? Ask Jimmy.
Buying a house, refinancing, or trying to figure out your options? I’ve spent years helping people navigate this stuff. Tell me what you’re working on and let’s figure it out.
Keep Reading
More mortgage answers. Less bullshit. Here’s what you should know next.
PCS to Mountain Home AFB: Buying a Home in Idaho With a VA Loan
A PCS guide to buying near Mountain Home AFB with a VA loan — on-base housing, the city of Mountain Home, Treasure Valley commutes, official BAH lookup and Idaho occupancy notes.
Buying a Home in West Haven, Utah
West Haven is one of Utah’s fastest-growing cities. Here’s how growth, new construction and a Hill AFB commute come together for VA, FHA and conventional buyers in west Weber County.
Buying a Home in Kaysville, Utah
Kaysville sits between Farmington and Layton in Davis County. Here’s how VA and conventional loans work for families in its established neighborhoods, including the Hill AFB commute and 2026 loan limits.