Dover Delaware First Start Down Payment Assistance Program
Dover Delaware First Start Down Payment Assistance Program is a down payment and closing cost assistance program provided by the City of Dover to encourage home ownership within the city limits of Dover, Delaware. The program is designed to assist low income families and moderate income families purchase an eligible property in the City of Dover. Call 302-703-0727 to get more information or to Apply. You can also APPLY ONLINE.
How Do You Qualify for the Dover First Start Down Payment Program?
In order to be eligible to qualify for the City of Dover Delaware Down Payment Assistance Program you must NOT have owned a principal residence in the last 3 years. There is one exception for single parents who have not owned a home for at least one year except as part of a joint ownership. You must also meet the following qualifications:
- Borrower must have at least $1,000 cash of their own money (excluding gift money)
- The home to be purchased must be borrower’s primary residence.
- Each home buyer must complete a HUD certified homeownership counseling program before signing a sales contract or applying for a mortgage and must be certified prior to closing.
- The first mortgage loan used to purchase the home must be held by a bank approved by the program. Primary Residential Mortgage is an approved lender
- Borrower must have an ASHI home inspection completed on ALL new construction and existing homes. Any major defects identified from the home inspection must be repaired by a licensed contractor prior to closing; new construction homes must have a 1 year HUD approved warranty.
- Borrower’s must have a visual lead based paint assessment conducted on all homes built prior to 1978.
- Must not exceed 80% of the median household income based upon family size for the City of Dover as defined by HUD.
- Must use a FHA Loan, VA Loan, or Conventional Loan as the first mortgage loan.
- Borrower NOT Allowed to receive any cash back at settlement on the Closing Disclosure (CD)
- Do NOT have to be a Delaware First Time Home Buyer – just can’t have owned home in last 3 years.
What are the Income Limits for Dover Delaware Down Payment Program?
The income limit for the City of Dover Program is based on the number of people residing in the household and not just the people on the loan. The household income cannot exceed 80% of the median income based on family size for City of Dover. The income limits for 2019 are below:
What are the Dover Delaware Down Payment Program Loan Terms?
The City of Dover Delaware First Start Down Payment Assistance Program provides a second mortgage loan up to $20,000 on eligible properties located in the City of Dover. The loan is at 0% interest and does not require any monthly payments from the borrower.
The loan is Forgiven after 10 years as long as the borrower continues to live in the property as their primary residence. If the property is sold, transferred, or the property ceases to be the borrower’s principle residence within the first 10 years then the full amount of the loan must be paid back.
How Do You Apply for the City of Dover Down Payment Assistance Program?
If you would like to apply for the Dover Down Payment Assistance Program you can call the John Thomas Team with Primary Residential Mortgage at 302-703-0727. Primary Residential Mortgage is an approved mortgage lender for the program. You can also APPLY ONLINE.