Delaware launches four new homeownership programs
The Delaware State Housing Authority recently announced four new programs designed to increase access to homeownership in the First State.
Now, whether a homebuyer is purchasing their first or next home, DSHA offers mortgage products that can make the dream of homeownership a reality.
Smart Start Home Loan is a first mortgage loan formerly known as DSHA unassisted. Interest rates will be priced daily and will be at or below current market rates. This program is available for conventional and government loans.
Home Sweet Home Program (Temporary) offers a zero-interest forgivable second loan of $12,000 to be used for down payment and closing cost assistance for buyers purchasing a home with a sales price of $285,000 or lower. Each year the homeowners reside in the subject property as their primary residence, the loan balance will decrease by 10% up to year 10. The loan will be forgiven after 10 years with verification the homeowners have resided in the subject property as their primary residence.
Delaware Diamonds Home Loan (Temporary) is a zero-interest forgivable second loan of $15,000 to be used for down payment and closing cost assistance. This program will be eligible to current essential workers who live in the state of Delaware with an occupation in the following fields: education, medical including first responders, retail such as grocery, general and wholesale store employees, and veterans. Each year the homeowners reside in the subject property as their primary residence, the loan balance will decrease by 10% up to year 10. The loan will be forgiven after 10 years with verification the homeowners have resided in the subject property as their primary residence.
First State Home Loan Program – FKA Preferred Plus is a zero-interest second loan. Formerly known as Preferred Plus, it will provide a 4% down payment and closing cost assistance loan based on the first mortgage final loan amount. The principal will be deferred until the following events: refinance, sales, transfer of title, and the property is no longer the borrowers’ primary residence, whichever comes first.
“The announcement of these programs is an important step in our efforts to provide all Delaware residents with the opportunity to enjoy the benefits of homeownership,” said Gov. John Carney. “I want to thank the Delaware State Housing Authority for their dedication and leadership in this space and encourage Delaware families to look into these opportunities.”
“Homeownership is at the core of DSHA’s services. Our team is continuously formulating innovative and beneficial ways to help individuals access quality, affordable homes,” said Eugene R. Young Jr., DSHA director. “These four programs will have a lasting impact on families, communities and the state as a whole.”
The Smart Start and First State Home Loan programs will be subsidized by revenues from DSHA’s primary homeownership loan programs. The Home Sweet Home Program and Delaware Diamonds Home Loan are being funded by a $5 million commitment from the additional $30 million supplement allocated by Carney to DSHA.
Buyers participating in the program must meet eligibility requirements for DSHA’s homeownership loan programs, including income limits and credit score (620 minimum). Renters looking to build credit can apply for the Delaware Tenant Rent Reporting Pilot Program, which reports on-time rent payments to Equifax, Experian and TransUnion, and on-time utility payments to TransUnion.
DSHA also offers financial counseling through HUD-approved housing counselors to help potential homebuyers improve their scores and get on the path to homeownership.
In correlation with the launch of these new programs, DSHA is also adjusting the income levels for its homeownership programs to provide more opportunities for residents to purchase homes in Delaware. The new income limits can be found on DSHA’s homeownership website.
The programs are available statewide, and DSHA will be working with its participating lenders to serve homeowners. For the complete lender list, go to kissyourlandlordgoodbye.com/lenders/.
The Delaware State Housing Authority, formed in 1968, provides quality, affordable housing opportunities and appropriate supportive services to low- and moderate-income Delawareans. For more information, call 302-739-4263 or go to destatehousing.com.
