DSHA 4% Down Payment Assistance Returns for Delaware Home Buyers – John Thomas, Primary Residential Mortgage
DSHA Brings Back 4% Down Payment Assistance for Delaware Home Buyers
Great news for Delaware home buyers. The Delaware State Housing Authority (DSHA) has re-released its 4% Down Payment Assistance (DPA) program, giving eligible buyers more help with upfront costs when purchasing a home. The program is available only in conjunction with their Home Again Mortgage Program. Take advantage now by calling John Thomas Loan Officer at 302-703-0727 or APPLY ONLINE
How the 4% Down Payment Assistance Works
The assistance equals 4% of the first mortgage loan amount and can be used toward down payment and closing costs. The 4% DPA is available only with the DSHA Home Again Program. It is not available with the DSHA Welcome Home Program.
The 4% Down Payment Assistance is in the form of a second mortgage loan at 0% interest with no required monthly payments. The loan must be paid back when one of three things happen:
- Sell the Home
- Refinance the first mortgage loan
- Move out and no long occupy the property as your primary residence
Home Again vs. Welcome Home
- Home Again Loan Program: available to repeat and first-time buyers, Can be combined with either the 3% DPA or the 4% DPA. The Home Again Loan carries a higher interest rate than Welcome Home Loan. You can pick one of the following loan programs under the Home Again: FHA Loan, VA Loan, USDA Loan, or Conventional financing.
- Welcome Home Loan Program: for first-time buyers or buyers who have not owned in the last three years and meet the income restrictions, offers a 3% DPA through the DSHA First State Home Loan Program. The Welcome Home Loan features a lower interest rate than Home Again, and may pair with Delaware’s first-time buyer transfer tax benefit when applicable.
Choosing between programs depends on your priorities. If you need more help at the closing table, the 4% down payment assistance with the Home Again Loan may help. If lowering your monthly payment is the priority, the lower interest rate with Welcome Home may save more over time but you will need more money out of pocket as can only get the 3% DPA.
Who Qualifies
- Meet DSHA income and purchase price limits
- Occupy the home as a primary residence
- Meet minimum credit score of 620 and underwriting guidelines per loan type.
- Work with a DSHA-approved lender such as John Thomas with Primary Residential Mortgage
Are There Other Down Payment Options in Delaware?
Yes, there are other Delaware Down Payment Programs besides the DSHA 3% DPA or 4% DPA. The following are just a few other options:
- DSHA FHA203k Diamond in the Rough with 5% DPA
- PRMI Welcome Home Down Payment Assistance
- PRMI Empower Down Payment Assistance
- New Castle County $10,000 DPA
- City of Dover First Start DPA
Get Expert Guidance from John Thomas
As a DSHA-approved loan officer with Primary Residential Mortgage, I will help you compare scenarios and determine whether 4% with Home Again or 3% with the lower-rate Welcome Home is the better fit for your budget and timeline. Call me at 302-703-0727 or APPLY ONLINE
Frequently Asked Questions
Is the 4% DPA available with Welcome Home?
No. The 4% DPA is only available with the DSHA Home Again Program. Welcome Home offers up to 3% DPA and comes with a lower interest rate.
Can I use DSHA funds for closing costs?
Yes. DSHA assistance can be applied to down payment, closing costs, or a combination of both, subject to program rules and lender guidelines.
What loan types work with DSHA?
DSHA programs can pair with FHA, VA, USDA, and Conventional loans, subject to eligibility and underwriting approval but you MUST get your first mortgage loan through the DSHA program and through a DSHA Approved lender.
How do I qualify for DSHA assistance?
You must meet DSHA income and purchase price limits, intend to occupy the property as your primary residence, and qualify with a DSHA-approved lender.
Which program will save me more?
It depends on your goals. If you need more upfront help, DSHA Home Again 4% DPA may be best. If you want a lower monthly payment, the lower rate with Welcome Home may win. A side-by-side scenario review can show the difference over time.
