Delaware FHA 203k Loans – Can you still use Down Payment Assistance?
Delaware FHA 203k Rehab Loans are used to repair or renovate properties all in one loan when you purchase a property. A typical question for a first time home buyer is if you can use one of the down payment assistance programs with an FHA 203k loan such as the Delaware State Bond Program. The answer is “no” because the bond loan is originated by a bank and then bought by the Bond program investor.
The 203k Loan can’t be bought right away because a repair escrow is set up for the repairs to be done and the distribution of those funds must be managed by the lender which the bond investor is not going to do. Most down payment assistance programs also require that the property meet occupancy requirements.
If you have questions on buying a home in Delaware with an FHA 203k loan feel free to contact me at 302-703-0727. I am a local rehab and renovation loan specialist that can help you with applying for an FHA 203k loan. You can APPLY ONLINE for a 203k Loan.
You can also purchase a copy of Your Guide to Buying Your First Home in Delaware Book which has a chapter on Delaware FHA 203k Loans.
You can also register for one of our monthly Free Delaware First Time Home Buyer Seminars
www.DelawareMortgageLoans.net/seminars
John R. Thomas – NMLS 38783
Certified Mortgage Planner – Primary Residential Mortgage, Inc.
302-703-0727 DE Office / 610-906-3109 PA Office / 410-412-3319 MD Office
248 E Chestnut Hill Rd, Newark, DE 19713
