New Competitive Mortgage Programs Announced by DE State Housing Authority
The Delaware State Housing Authority (DSHA) announced last week new competitive mortgage programs and the relaunch of down payment and closing cost assistance programs that can make the dream of homeownership a reality for Delawareans.
The new mortgage programs are Welcome Home and Home Again. Welcome Home is for first-time homebuyers – those who have not owned a home as a primary residence in the past three years. Home Again is for homebuyers who do not meet the qualifications of the Welcome Home Program or are repeat homebuyers. Both programs offer financing options through the Smart Start Home Loan Program.
Additional information from DSHA:
Both programs offer financing options through the Smart Start Home Loan Program, which provides Conventional, FHA, VA, and USDA financing and discounted mortgage rates—in some cases as low as 5.5%.
These programs will be funded through state funds and a $75 million “single-family” bond— DSHA’s first since 2013—and can be combined with any of DSHA’s down payment assistance programs listed below:
Both programs offer financing options through the Smart Start Home Loan Program, which provides Conventional, FHA, VA, and USDA financing and discounted mortgage rates—in some cases as low as 5.5%.
These programs will be funded through state funds and a $75 million “single-family” bond— DSHA’s first since 2013—and can be combined with any of DSHA’s down payment assistance programs listed below:
- Home Sweet Home (Temporary): A zero-interest forgivable second loan of$12,000 for homebuyers purchasing a home with a maximum sales price of$285,000. Each year the homeowner(s)resides 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 homeowner(s) has resided in the subject property as their primary residence. In 2023, 180Families received down payment and closing costs assistance using Home Sweet Home totaling $2,160,000.00 disbursed in assistance.
- Delaware Diamonds Home Loan (Temporary): A zero-interest forgivable second loan of$10,000. Those eligible for this loan must work in Delaware in the following occupations: Delaware State employees; public and private school employees; healthcare workers employed by Bayhealth, Beebe, Nemours, St. Francis, Christiana Care, and the VA Hospital; first responders (full-time and volunteer) such as firefighters, police officers, paramedics, and emergency medical technicians; active-duty military; and qualified veterans. Each year the homeowner(s) reside(s) 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 homeowner(s) has resided in the subject property as their primary residence. In 2023, 147 Families received down payment and closing costs assistance using Delaware Diamonds totaling $2,148,000.00 disbursed in assistance.
- First State Home Loan: A zero-interest second loan, providing 3% oft he 1st 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 borrower’s primary residence (whichever comes first).
“These programs help to make homeownership more accessible in the First State,” said Governor John Carney. “Many Delaware families have already benefited from these programs, including first-time homebuyers. I encourage Delawareans to look into these resources.”
“Making homeownership affordable for Delaware families is one of DSHA’s most important goals,” said Eugene R. Young, Jr., Director of DSHA. “Our team continues to develop impactful, innovative programs that fulfill that goal while improving the lives of Delaware residents and the communities they live in.”
Buyers participating in the programs must meet eligibility requirements for DSHA’s homeownership loan programs, including income limits and credit score (620 minimum). Income limits for these programs can be found on DSHA’s homeownership website: https://kissyourlandlordgoodbye.com/.
DSHA also offers financial counseling through HUD-approved housing counselors to help potential homebuyers improve their scores and reach homeownership. To find a housing counselor near you, please visit: https://kissyourlandlordgoodbye.com/housing-counselors/.
The programs are available statewide, and DSHA will be working with its participating lenders to serve homeowners. See the complete lender list here: https://kissyourlandlordgoodbye.com/lenders/.
