DSHA Temporary Guideline Changes May 2020
DSHA announced temporary guideline changes to their home buyer assistance programs for home buyers in Delaware. Effective with new reservations for their Preferred Plus Down Payment Assistance Program and their Base Rate Program their will be stricter guidelines for qualifying for the program if you are getting a FHA Loan, VA Loans or a USDA Loan. If you have questions please call the John Thomas Team at 302-703-0727 or you can APPLY ONLINE
Anybody with a qualifying credit score below 700 will have a maximum Debt to Income Ratio (DTI) of 45% in order to be eligible for the program. The minimum credit score to apply for the Delaware State Housing Authority Program is still 620 but there are now restrictions to the maximum DTI if credit score is below 620 starting in May 2020.
When does the DSHA temporary guideline go into effect?
Lenders have until Friday May 1, 2020 to make loan reservation in DSHA MITAS system to be eligible under the current guidelines of no DTI restrictions. In order to make a reservation, borrowers must currently be under contract to purchase a home and have made official mortgage application with a DSHA approved lender such as Primary Residential Mortgage.
Does This Affect the MCC Program?
The new temporary DSHA guidelines DO NOT affect qualifying for the Delaware Mortgage Credit Certificate Program (MCC). The Delaware MCC is also known as the Delaware first time home buyer tax credit program is not currently affected by the changes. The MCC provides eligible home buyers up to $2,000 every year as a Federal tax credit on your tax return.
How do you APPLY for a DSHA Housing Program?
In order to enroll in a DSHA housing program, you must apply with a DSHA approved lender such as Primary Residential Mortgage. The following programs are offered by DSHA:
- Welcome Home Program
- Home Again Program
- Preferred Plus Down Payment Assistance
- Mortgage Credit Certificate Program
- Homes for Grads Program
You can apply for any of these programs by calling the John Thomas Team of Primary Residential Mortgage at 302-703-0727 or APPLY ONLINE.