Delaware First-Time Home Buyer

Delaware First-Time Home Buyer

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

UPDATE MARCH 2022 – 6.5% Suspended – Currently Only 3.5% Grant Because of Mortgage Market Conditions

PRMI DPA Advantage Grant Program provides up to 6.5% 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

6.5% Grant Program Highlights

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

  • Completely Forgivable grant of up to 3.5% of the purchase price toward down payment and with up to 3% Lender Credit toward closing costs for 6.5% of grant money that doesn’t have to be paid back!
  • May be combined with up to 6% seller paid closing costs
  • Minimum Qualifying Credit Score is 620
  • No Resale restrictions on the home
  • No Second Lien on the property
  • No Repayment Required
  • 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 6.5% 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...

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...