(302) 703-0727

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Delaware State Bond Program for First Time Home Buyers

John Thomas August 7, 2011 Tags: , , , ,
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Delaware State Bond Program for First Time Home Buyers

The Delaware State Bond Program provides home mortgages for first time home buyers purchasing homes in all three counties of the state of Delaware.  The program is overseen by the Delaware State Housing Authority (DSHA).  The program offers first mortgage loans to people who have not owned a home in the last 3 years.  The mortgage loans must be obtained by an approved lender for the program.  Call 302-703-0727 to apply for the Delaware State Bond Program or APPLY ONLINE.

The mortgage interest rate for the program changes each time the state of Delaware Issues a new bond.  There are income restrictions for the program which are determined by the median income for the county.  There are three counties in Delaware; New Castle County, Kent County, and Sussex County.  There are also maximum purchase price limits per county as well.  The income limits can change each year as the median household income changes.

Delaware State Bond Program SMAL Loan

The DSHA also offers a Delaware down payment assistance loan in conjunction with this program.  This loan program is called the Second Mortgage Assistance Loan (SMAL).  This is a loan for up to $8,000 to help with down payment and/or closing costs.  The loan is secured as a second mortgage against the property.  The interest rate on this loan is 3%.  There are no payments required for the first 30 years but it will accumulate interest each year.  So if you make no payments the balance of the loan will keep going up.

The SMAL loan must be paid off if you refinance your first mortgage, sell the home, transfer title to the property, or no longer occupied the property as your primary residence.  You are also required to get a Home Inspection on the property that you are buying and this inspection must be done by an ASHI or NACHI home inspector.

Delaware State Bond Program Advantage 4 Grant

DSHA offers a second program called the Advantage 4 Grant Program which offers a 4% grant toward down payment and/or closing costs for the purchase of a home in Delaware.  The 4% grant is based on 4% of the total loan amount on the first mortgage.  The Advantage 4 Grant does not have to be paid back after closing.  You must be a first time home buyer in order to qualify for the program.

How Do You Apply for a Delaware State Bond Program?

You can only apply for a Delaware State Bond Program using the DSHA SMAL loan or the DSHA Advantage 4 Program from a participating lender.  You must also complete 8 hours of home counseling through a HUD-approved counseling program.  If you would like to sign up for a 2-hour introductory class for your first 2 hours of counseling, you can sign up at www.DelawareHomeBuyerSeminar.com.

If you would like more information or would like to apply for a Delaware Mortgage Bond Loan or a SMAL Loan or Advantage 4 Grant you can call 302-703-0727 or send an e-mail to johnthomasteam@primeres.com or APPLY ONLINE

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

About John Thomas

John Thomas and his team are long-time Delaware natives. They know the local real estate market as well as they know the loan products that help them serve it. Dedicated to helping first-time buyers; the John Thomas Team are experts on first-time buyer loan programs (FHA, VA, USDA) and conduct monthly first-time buyer seminars that have been attended by more than 3000 Delaware buyers.

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