Delaware First-Time Home Buyer

Delaware First-Time Home Buyer

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.
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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.

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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!!!

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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

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The Financial Benefits of Owning Your Home

John Thomas December 7, 2017 Tags:
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Delaware First Time Home Buyers

Owning Your Own Home is a Financial Goldmine for Delaware First Time Home Buyers

By now, it’s hard to ignore the facts: owning your home carries huge advantages over renting. Homeownership comes with, among other things, financial perks that just aren’t available to renters. Even with all the advantages of owning a home, many people continue to rent. This opens them up to needlessly stressful situations (including things like unchecked repairs and consistently rising rent). Owning a home is becoming easier and easier with the large pool of mortgage loan programs available to potential Delaware First Time Home Buyers. Delaware home seekers can start their home buying journey easily by calling the John Thomas Team at 302.703.0727, or by applying online.

In this blog, we’re going to take a quick look at some of the biggest financial reasons to own your own home and why you should add homeownership to your to-do list (if you haven’t already).  It really pays in the long run to be a first time home buyer in Delaware.

To quote MIT Digital Economy Professor Erik Brynjolfsson:

“Owning a house gives you “residual rights of control” to do what you want with it and that kind of ownership creates psychic rewards for many people and it’s also a kind of forced savings that can pay off over the long term. You can paint it, remodel, put in a garden, invest in custom appliances, etc.”

In this day and age, you should absolutely own or work toward owning your own home.

Why Should Delaware First Time Home Buyers Own Their Own Home?

1. Owning your own home comes with great financial benefits:

  • Owning your own home is an investment you can live in.
  • It allows you to create a ‘forced savings’ for your family.
  • Owning your own home can save you money on taxes.
  • Owning your home creates stable long-term housing costs.
  • It gives families the opportunity to build family wealth in a shorter amount of time.

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    New Castle County ReVaMP Down Payment Program

    John Thomas September 26, 2016 Tags: , , ,
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    NCC ReVaMP Down Payment Program

    New Castle County ReVaMP Down Payment Program

    New Castle County ReVaMP Down Payment Program launches October 26, 2016 and is a 5 year forgivable loan of up to $5,000 for the purchase of a vacant home in designated census tracts in New Castle County Delaware. ReVaMP abbreviation for Remediating Vacancies, Making rogress Down Payment and Settlement Assistance Program. The Delaware down payment assistance program is to be used for normal and customary settlement costs and required down payment.  Call 302-703-0727 for more information or to apply for the loan with New Castle County Approved Lender Partner the John Thomas Team with Primary Residential Mortgage or APPLY ONLINE

    NCC ReVaMP Down Payment Program Guidelines:

    The New Castle County ReVaMP Down Payment Assistance Program is a second mortgage loan that is secured against the property at 0% interest but is forgiven after 5 years if property is still your primary residence.  The program is only for home buyers that are purchasing a property that has been vacant for at least 90 days and will be their primary residence.  You DO NOT have to be a first time home buyer to participate in the program.  In order to qualify home buyers must be below the household income restrictions for the program which is less than 120% of the Median household income for New Castle County per household size as shown in the chart below:

    For each person in excess of eight, 8.00 percent for the four-person base should be added to the eight person income household income limits. All household income limits should be rounded to the nearest $50

    The maximum selling price of the home in order to be eligible for the NCC ReVaMP program is $379,500.  Each borrower must have at least $500 minimum cash investment into the purchase of the home.  The maximum household debt to income ratio (DTI) in order to qualify for the down payment program is 52%.  Borrowers are required to complete 8 hours of HUD approved home buyer counseling from New Castle County approved agency.

    The NCC ReVAMP program requires a home inspection to be done by an ASHI, NAHI  or InterNACHI certified home inspector.  If the property was built prior to 1978 a visual lead inspection is required.  No repairs will be required by New Castle County if found on either report.  The property must be located in a designated census tract for the ReVaMP program.  If the property requires repairs to be done to qualify for a mortgage loan borrowers may use a FHA 203k Rehab Loan to purchase the property and borrower the money to fix up the property all in one loan.

    Highlights of NCC Remediating Vacancies, Making Progress Down Payment Program:

  • $5,000 forgivable Loan after 5 years
  • $5000 minimum cash investment from borrower
  • 8 Hours of Home Buyer Counseling
  • Do NOT have to be Delaware first time home buyer
  • Must have Home Inspection Done & Lead Inspection if prior to 1978
  • Max purchase Price is $379,500
  • Property Must be in Eligible Census Tract
  • Property Must be Vacant for at least past 90 days
  • Must be under Household Income Limits to qualify
  • Maximum Debt to Income (DTI) Ratio is 52%
  • Eligible to be used with Delaware FHA 203k Loan
  • Must be Your Primary Residence when buying and for the 5 year forgivable period

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    Delaware Home Buyer Seminar June 18 2016

    John Thomas May 22, 2016 Tags: , , ,
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    Book Cover - FTHB - 2011

    Delaware Home Buyer Seminar

    There will be a Delaware Home Buyer Seminar on Saturday June 18, 2016 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 seminar will cover all of the basics of buying a home in Delaware. The seminar will cover FHA loans, VA loans, USDA Rural Housing Loans, First Time Home Buyer Loan Programs and the FHA 203k Rehab loans.

    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, 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 changes options for borrowing 100% financing to purchase a home in Delaware at the Delaware 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.

    The Seminar is being held at The Christiana Hilton Hotel at 100 Continental Drive, Newark, DE 19713 from 10:00 AM till 12:00 PM on May 21, 2016.

    To register for the seminar, please call 302-703-0727. You can also e-mail me at jthomas@primeres.com. You can register online by clicking the registration link below:

    For a complete list of seminars visit Delaware Home Buyer Seminars.

    APPLY ONLINE today to be pre-approved for a mortgage to buy your first home in Delaware. Primary Residential Mortgage is an approved lender for the Delaware Bond Program through DSHA.

    John R. Thomas | NMLS 38783