Down Payment Assistance

Down Payment Assistance

Dover Delaware First Start Down Payment Assistance Program

John Thomas October 13, 2019 Tags: , , ,
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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: Keep Reading...

DSHA Homes for Grads Program

John Thomas July 27, 2019 Tags: , ,
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DSHA Homes for Grads Program is perfect for someone who has been kept from purchasing a home because of not being able to save for down payment and closing costs. The DSHA Preferred Plus Program with the Homes for Grads program provides down payment and closing costs assistance as well as reduced interest rate mortgage loans. Homes for Grads receive a 0.50% reduction in interest rate! For more information call John Thomas at 302-703-0727 or APPLY ONLINE NOW

Who is Eligible for the DSHA Homes for Grads Program?

In order to be eligible to apply for a Homes for Grad Home Loan you must have graduated from a college with a four year degree or higher. The borrower or co-borrower must have completed the required courses withing three years pf the date of reservation rate lock with DSHA. Keep Reading...

PRMI DPA Advantage Grant Program

John Thomas May 5, 2019 Tags: , , ,
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PRMI DPA Advantage Grant Program

PRMI DPA Advantage Grant Program provides up to 2% as a forgivable grant to eligible borrowers using a FHA Loan to purchase a home. The PRMI DPA Advantage Grant program is an approved Delaware down payment assistance program by HUD so can be used with a FHA mortgage loan. Call 302-703-0727 to apply for the grant or APPLY ONLINE

2% Grant Program Highlights

The highlights of the PRMI DPA Advantage Grant Program are as follows:

  • Completely Forgivable grant of up to 2% of the purchase price.
  • May be combined with up to 6% seller paid closing costs
  • Minimum Qualifying Credit Score is 580
  • No Resale restrictions on the home
  • Must be Primary Residence
  • Approved Down Payment Assistance Program
  • Must Complete HUD Approved Home Buyer Counseling Class
  • Can Only be Used with a FHA Loan

Borrower Eligibility for PRMI DPA Advantage Grant Program

In order to be eligible to qualify for the 2% DPA Advantage Grant Program you must meet only ONE of the following categories: Keep Reading...

A Gift Fund or Gift of Equity Can Be Your Best Gift Ever

John Thomas April 4, 2019 Tags: , , ,
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Did you know? Nearly 25% of first-time home buyers use cash gifts as down payment on their home, according to the 2017 National Association of Realtors Profile of Home Buyers and Sellers report.

Yes, it’s true.

Many people find it difficult to purchase their first home when cost meets financial constraints (like having to pay off student loans despite good-paying jobs).

Here’s where caring friends and family may step in and help out—by offering a gift fund or a gift of equity.

What Is a Gift Fund and What Is a Gift of Equity?

When you’re looking to buy a house and you’re getting a loan, any money that your relative wants to contribute toward the purchase of your home is called a gift fund. Gift funds are common when a person buying a home doesn’t have all the liquid money to purchase it and a relative is willing and able to help supplement their financing needs.
Keep Reading...

The Lowdown on Delaware Down Payment Grants

John Thomas August 10, 2018 Tags: , , ,
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Delaware Down Payment Grants

Delaware Down Payment Grants Bridge the Gap

For Delaware buyers that are having trouble stretching their savings for the required down payment for their desired mortgage, Delaware Down Payment Grants Down can be a life saver. The grants were designed to assist buyers who find themselves short of the down payment and usually don’t have to be repaid. This makes them an ideal helper to anyone looking to secure financing for their home buying journey.

It is definitely worth it to go through the sometimes tedious process to get approved for the grants – much of the money goes unclaimed. There are a few things you need to know about Delaware Down Payment Grants:

  • The money awarded for Down payment assistance is allocated to Delaware via HUD. 
  • The main eligibility requirements include credit score and income, the price of the home, and the area the home is located.
  • Applicants must be first-time buyers purchasing a primary residence.
  • It is essential to understand the fine print – there are strict rules that could result in the money needing to be returned.

The John Thomas Team can help you determine if you’re eligible for a Delaware Down Payment Grant – contact us by calling  302-703-0727 or simply APPLY NOW

Delaware Down Payment Assistance Programs Can Ease The Process for First Time Homebuyers

It’s no secret that first time home buyers face a number of issues, the biggest being down payment costs. Delaware Down Payment Assistance Programs can help create a more manageable experience on the home buyer journey. Programs like Delaware Down Payment Grants are designed to help eligible buyers create a bridge between their savings and the down payment costs for a mortgage.

It is important to understand the difference between a grant and a loan.  Grants do not have to be paid back if the borrower meets the guidelines for the program.  Loans have to be paid back at some point.  Some loans may have a deferment period with no payments and some have no payments only have to be paid back when the home is sold or refinanced.

If you’re in the market for a home and struggling to find funds, it’s important to understand the information below to help you navigate Delaware down payment grants successfully.

Where Should You Look For Delaware Down Payment Grants?

Before you get started, it’s important to understand how these down payment grants work. The grants are not provided directly to individuals by the government. HUD allocates money to states instead, and from there states award the funds to qualified buyers. The process works like this in Delaware – all grants are awarded at the local level. 

The Delaware Down Payment Assistance (DPA) program have different guidelines.  The main program in Delaware has been the DSHA Advantage 4 Grant program which provides a grant of up to 4% of the mortgage loan amount.  Programs can change and/or be discontinued to it is important to check with a mortgage lender to make sure which programs are currently available.

Are You Eligible for Delaware Down Payment Grants?

Although every grant and assistance program vary, here are some general qualifications that you may be expected to meet:

  • You must be a first-time buyer purchasing a primary residence for most programs.
  • Income limits apply for most programs
  • There is usually a maximum home sales price, which depends on local housing costs.
  • You will likely have to attend a homebuyer HUD approved counseling program. These courses help educate future homeowners about managing their financial responsibilities.  For list of Delaware home buyer seminars click here: http://www.DelawareHomeBuyerSeminars.com
  • Most times, the home must be located within certain geographic boundaries.

Delaware First-time Home Buyer Definition

What constitutes as a first-time home buyer in Delaware? There are a couple of exceptions in Delaware that you might not have thought about. A Delaware F

irst-Time Home Buyer Keep Reading...

DSHA Preferred Plus Down Payment Assistance Program

John Thomas May 3, 2018 Tags: ,
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DSHA Preferred Plus Down Payment Asssistance Program

DSHA Preferred Plus Down Payment Assistance Program

DSHA Preferred Plus Down Payment Assistance Program is a new Delaware down payment assistance program to replace the current DSHA SMAL Loan Program and the DSHA Advantage 4 Grant Program effective May 1, 2018.  The Preferred Plus program provides Delaware home buyers with down payment assistance loans for 2% to 5% of the first mortgage loan.  The down payment assistance can be used toward the required down payment and/or closing costs.  Call 302-703-0727 for more information or to apply for the Preferred Plus Program.  You can also apply online at DSHA Preferred Plus Program Application

 What are the guidelines for the DSHA Preferred Plus Down Payment Assistance Program?

The new DSHA Delaware Down Payment Assistance program will be a soft second mortgage with the following terms:

  • Minimum 620 FICO score to be eligible for the program
  • Must be under the total household income limit for the county
  • Must be purchasing a home for $417,000 or less
  • Can receive from 2% up to %5 of the first mortgage loan for down payment assistance
  • Must receive an approve/eligible response from the automated underwriting system
  • Will sign a Note and Mortgage for Soft Second mortgage at closing
  • Must attend 8 hours of HUD approved home buyer counseling if credit score is less than 660
  • Must use one of DSHA’s first mortgage programs through an approved DSHA Mortgage Lender such as Primary Residential Mortgage
  • Must provide three years of Federal Tax Returns for each working household member to DSHA to prove have not owned a home and are under the income limits for the program.
  • *First lien interest rates maybe higher when using a DPA second.

What are the eligible property types for the DSHA Preferred Plus Program? Keep Reading...

Wilmington Delaware Down Payment Assistance Program

John Thomas December 22, 2017 Tags:
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Wilmingotn Delware Down Payment Program

Wilmington Delaware Down Payment Assistance Program

What is the Wilmington Delaware Down Payment Assistance Program?

The Wilmington Employee Homebuyer Assistance Program is a grant program offered by the City of Wilmington where an employee can earn up to $4,000 in down payment and settlement assistance toward the purchase of a home. Homes must be within the City of Wilmington boundaries and meet specific requirements set by the City of Wilmington for their Liver Near Your Work Program. The John Thomas Team can help get you prepared for homeownership with our first time homebuyer programs in Wilmington – call (302) 703-0727 or Apply Online.

Wilmington has designated a portion of its own funding to help its employees buy a home within city limits. This is one of a number of great first time home buyer programs in Wilmington and could potentially put you in a home. Employees that meet the Wilmington City requirements (outlined below) can receive a grant of up to $4,000 (the amount cannot exceed down payment and settlement costs).  The down payment assistance money does not have to be paid back by the employee if they live in the property for 5 years as it is a Delaware down payment grant.

 

How do I Qualify for the Wilmington Delaware Down Payment Assistance Program?

The program has a few restrictions, including:

  • You must purchase a home within the City of Wilmington to be Eligible for City of Wilmington Live Near Your Work Grant Program
  • You must be a City of Wilmington employee who has finished their probation period
  • You must complete Homeowner Counseling with approved Delaware HUD Counseling Agency.
  • You may only receive funding once in a five year period
  • You must provide a minimum of $1,000 cash contribution toward the total transaction
  • You must get a fixed-rate mortgage with no option for cash out
  • You must live in the home as your primary residence for a minimum of 5 years.
  • Employee will receive a 1099 form from the City for the grant amount and it will be taxable as income.
  • Must meet the household income restrictions and be within maximum sales price limit

Once you’re approved, your awarded funding will be reserved for six months after the date of signing. It’s important to take advantage of this within the time frame – funds are based on availability.

 

What are the household income and sales price restrictions for the Wilmington Down Payment Grant?

In order to qualify for the City of Wilmington Live Near Your work (LNYW) program you must meet the household income guidelines and the property must be within the maximum sales price limit outlined below:

Household Income Limits for 2018:

 

 

 

Sales Price Limits for 2018:

 

 

What are the Qualifications my Potential Home Must Meet for City of Wilmington Live Near Your Work? Keep Reading...

PRMI Dream Maker Down Payment Program

John Thomas September 25, 2017 Tags: ,
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PRMI Dream Maker Down Payment Program

Are ready to buy a home but don’t have the 3.5% down payment required by FHA? Or can’t get a gift for the down payment?  We have a loan program for you that will lend you 100% financing with a FHA Loan and our PRMI Dream Maker Down Payment Program.  Call us today at 302-703-0727 to started on the process or go online at Dream Maker Online Application

What are the Qualifications for the PRMI Dream Maker Down Payment Program?

The requirements to qualify for the Down Payment Assistance are as follows:

  • 620 Minimum FICO score for all borrowers
  • No Income Limits to qualify!
  • Must be purchasing the property as Primary residence
  • Eligible to get as much as $13,700 for down payment
  • No Home Buyer Education Required
  • Second Mortgage Amount up to 3.5% of purchase price
  • Forgivable Soft Second Mortgage if under 115% of Average Median Income (AMI)
  • Non-Occupant Co-Borrowers are Allowed
  • Must Receive Approve/Eligible Response from Automated Underwriting System (AUS)
  • Keep Reading...