Delaware First-Time Home Buyer

Delaware First-Time Home Buyer

DSHA Temporary Guideline Changes May 2020

John Thomas April 24, 2020 Tags: ,
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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. Keep Reading...

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...

Newark Delaware Home Buyer Seminar May 11 2019

John Thomas April 25, 2019 Tags: ,
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Newark Delaware First Time Home Buyer Seminar

There will be a Newark Delaware First Time Home Buyer Seminar on Saturday May 11, 2019 at 10:00 AM till Noon. The seminar will last about 2 hours and each participate will be able to receive a copy of their credit report. The home buyer seminar will cover all of the basics of buying a home in Delaware. The Newark Delaware First Time Home Buyer seminar will cover FHA loans, VA loans, USDA Rural Housing Loans, First Time Home Buyer Loan Programs and the FHA 203k Rehab loans.  We will also cover the Delaware Mortgage Credit Certificate Program which is also know as the Delaware first time home buyer tax credit which give you up to $2,000 a year as a federal tax credit for every year you have the mortgage loan. 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...

Delaware First Time Home Buyer State Transfer Tax Exemption

John Thomas August 31, 2018 Tags:
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Delaware First Time Home Buyer State Transfer Tax

Delaware First Time Home Buyer State Transfer Tax Exemption

Delaware First Time Home Buyer State Transfer Tax Exemption was enacted on August 30, 2018 and was made retroactive back to August 1, 2017 when the State of Delaware increased the transfer tax from 1.5% to 2.5% on the state portion, so effective immediately, Delaware First Time Home Buyer‘s portion f the State transfer tax is reduced from 1.25% to 0.75%.  The Seller’s portion remains at 1.25%.  The first time home buyer exemption applies to purchase price of up to $400,000.  If purchase price is above $400,000 then the Delaware first time home buyer pays the full 1.25% on the amount above $400,000.

The transfer tax in Delaware is currently 4% of the sales price with the State portion at 2.5% and the county portion at 1.5%.  The transfer tax is commonly split evenly between the buyer and the seller so buyer pays 2% and the seller pays 2%.  First time home buyers have been exempt from the county portion of 0.75% as long as the property is not located inside a municipality such as the town of Middletown.  Now Delaware first time home buyers are exempt from 0.5% of the state portion up to $400,000 so the total exemption is 1.25% of the 2% paid by the home buyer.  So essentially a first time home buyer could pay only 0.75% which can save thousands of dollars.

Who Qualifies for the Delaware First Time Home Buyer State Transfer Tax Refund?

Individuals who purchase their first home after August 1, 2017 and paid the increased Delaware State transfer tax rate of 1.25% to the buyer may be entitled to request a refund from the Delaware Division of Revenue.   The refund is 0.5% of the purchase price up to $400,000 so max amount one can get back as a refund is $200,000.  The time to process the refund being quoted by State of Delaware is 4-6 weeks.

What if you never owned a home but your spouse has, Do you qualify for the first time home buyer rate reduction?

The short answer is No.  Unfortunately the law requires that every person who purchases the property must have never owned an interest in a residential real estate in the past so even if owned an investment property, you would not meet definition of first time home buyer.  Now if your spouse is not on the mortgage, the sales contract and is not on the deed to the property you are buying, then you would be eligible for the rate reduction.

Delaware First Time Home Buyer State Transfer Tax Exemption Retroactive! Keep Reading...

Newark Delaware First Time Home Buyer Seminar Sept 22 2018

John Thomas August 29, 2018 Tags:
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Book Cover - FTHB - 2011

Newark Delaware First Time Home Buyer Seminar

There will be a Newark Delaware First Time Home Buyer Seminar on Saturday September 22, 2018 at 10:00 AM till Noon. The seminar will last about 2 hours and each participate will be able to receive a copy of their credit report. The home buyer seminar will cover all of the basics of buying a home in Delaware. The Newark Delaware First Time Home Buyer seminar will cover FHA loans, VA loans, USDA Rural Housing Loans, First Time Home Buyer Loan Programs and the FHA 203k Rehab loans.  We will also cover the Delaware Mortgage Credit Certificate Program which is also know as the Delaware first time home buyer tax credit which give you up to $2,000 a year as a federal tax credit for every year you have the mortgage loan.

Register Now!

Call 302-703-0727 or Register Online at http://www.DelawareHomeBuyerSeminar.com

The Seminar is sponsored by The Neighborhood House so each participant will receive Delaware home buyer counseling credit toward the required HUD approved home buyer counseling required for Delaware First Time Home Buyer Programs such as Delaware State Housing Authority, New Castle County, City of Newark, City of Dover, and City of Wilmington.

Each participate will receive a Credit Scoring Handbook, Delaware Home Buying Handbook, A Household Budget Calculator Worksheet and an opportunity to meet with a certified mortgage planner to be Pre-Approved to buy a home at the seminar. You will also learn importance of credit in buying a home and learn valuable tips on how to improve your credit score.

Learn what programs are available to help with down payment and closing costs. The new loan limits for conventional and FHA will be covered as well as options for borrowing 100% financing to purchase a home in Delaware at the Delaware First Time Home Buyer Seminar.

The seminar is based on the best selling book, Your Guide to Buying Your First Home in Delaware written by John R. Thomas.

What will you learn at the Newark Delaware First Time Home Buyer Seminar?

You will also learn the following at the seminar:

Valuable Tips on How to Improve Your Credit Score
How to Establish Credit if You have None
How to Budget to Afford a New Home
How to Calculate How Much Your Qualify for
How to Get Pre-Approved for a Delaware Mortgage Loan
Learn what Mortgage Programs are available for Delaware First Time Home Buyers
Learn what programs are available to help with down payment and closing costs such as a Delaware Down Payment Grant
Learn what your Delaware Mortgage Lender should be doing for you
Learn what your Delaware Real Estate Attorney should be doing for you
Learn what your Delaware Real Estate Agent should be doing for you
Learn what your Delaware Home Inspector should be doing for you
How to find the right Realtor to help you find your new home
How to shop for your new home
How to make the offer and negotiate the best price and terms
and much more!!!

Where will the Newark Delaware First Time Home Buyer Seminar Be Held? Keep Reading...