Tag Delaware Down Payment Assistance

Tag Delaware Down Payment Assistance

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...

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...

DSHA Preferred Plus Down Payment Assistance Program

John Thomas May 3, 2018 Tags: ,
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DSHA Preferred Plus Down Payment Asssistance Program

DSHA Preferred Plus Down Payment Assistance Program

DSHA Preferred Plus Down Payment Assistance Program is a new Delaware down payment assistance program to replace the current DSHA SMAL Loan Program and the DSHA Advantage 4 Grant Program effective May 1, 2018.  The Preferred Plus program provides Delaware home buyers with down payment assistance loans for 2% to 5% of the first mortgage loan.  The down payment assistance can be used toward the required down payment and/or closing costs.  Call 302-703-0727 for more information or to apply for the Preferred Plus Program.  You can also apply online at DSHA Preferred Plus Program Application

 What are the guidelines for the DSHA Preferred Plus Down Payment Assistance Program?

The new DSHA Delaware Down Payment Assistance program will be a soft second mortgage with the following terms:

  • Minimum 620 FICO score to be eligible for the program
  • Must be under the total household income limit for the county
  • Must be purchasing a home for $417,000 or less
  • Can receive from 2% up to %5 of the first mortgage loan for down payment assistance
  • Must receive an approve/eligible response from the automated underwriting system
  • Will sign a Note and Mortgage for Soft Second mortgage at closing
  • Must attend 8 hours of HUD approved home buyer counseling if credit score is less than 660
  • Must use one of DSHA’s first mortgage programs through an approved DSHA Mortgage Lender such as Primary Residential Mortgage
  • Must provide three years of Federal Tax Returns for each working household member to DSHA to prove have not owned a home and are under the income limits for the program.
  • *First lien interest rates maybe higher when using a DPA second.

What are the eligible property types for the DSHA Preferred Plus Program? Keep Reading...

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
  • Keep Reading...

    DSHA Mortgage Bond Loan Update – April 17 2012 – Must have filed 2011 Tax Return in order to Qualify

    John Thomas April 17, 2012 Tags: , , , , ,

    DSHA First Time Home Buyer Mortgage Bond Loan Update  for April 17, 2012 – DSHA sent out a notice today and stated the following:

    2011 Federal Tax Returns Now Required

    Effective today April 17, 2012, any application submitted to DSHA must include 2011 Federal Tax Returns. We cannot accept an application for an extension, we must have the return. For the First Time Homebuyer Program, you must now submit returns for the years: 2011, 2010 and 2009.

    This means that if you have not filed then you are NOT ELIGIBLE To participate in the State of Delaware First Time Home Buyer Program thru the Delaware State Housing Authority (DSHA), this includes the down payment assistance program called the SMAL.

    If you are buying in New Castle County then you have other options for first time home buyer programs through New Castle County. New Castle County has the following programs:

    These programs will allow you to file an extension for 2011 and still participate in the program. If you would like to apply for any of these program call 302-703-0727 or you can APPLY ONLINE.

    John R. Thomas – NMLS 38783

    Certified Mortgage Planner – Primary Residential Mortgage, Inc.

    302-703-0727 DE Office / 610-906-3109 PA Office / 410-412-3319 MD Office

    248 E Chestnut Hill Rd, Newark, DE 19713

    Delaware First Time Home Buyer Programs – New Castle County Programs

    John Thomas June 23, 2009 Tags: , , , , ,
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    Delaware First Time Hom Buyer Programs

    New Castle County Delaware has Two First Time Home Buyer Programs:

    New Castle County Down Payment Settlement Program (DPS)

    The New Castle County Down Payment Settlement Program is a Delaware first time home buyer program that gives first time home buyers deferred payment loans for up to $5,000 to cover customary settlement costs and required down payment to purchase a home located in New Castle County, Delaware.  The loan is an 8-year loan that requires no payment for the first 3 years of the loan.  The loan is then repaid over the last 5 years at an interest rate of 3%.  If a loan is paid off in the first 3 years then no interest is charged.  The residence must be borrower’s primary residence throughout the duration of the loan.  Call 302-703-0727 to apply for the program or APPLY ONLINE

    New Castle County Home Owner Incentive Program (HIP)

    The New Castle County Home Owner Incentive Program (HIP) is a Delaware first time home buyer program that is a deferred loan program to help home buyers purchase homes in targeted neighborhoods.  The program will give a loan for up to 6% of the sales price for a maximum of $10,000.  The interest rate is 0% and no payments are required.  The loan must be paid in full when a home is sold or if no longer primary residence.  The program is only available in identified targeted neighborhoods.  The maximum sale price is $178,100.  You do not have to be a first time home buyer to qualify for this program.

    Both programs have income restrictions.  The income guidelines for DPS and HIP are as follows;

    1 Person Household: $43,600

    2 Person Household: $49,800

    3 Person Household: $56,050

    4 Person Household: $62,250

    5 Person Household: $67,250

    6 Person Household: $72,200

    7 Person Household: $77,200

    8 Person Household: $82,150

    Delaware First Time Home Buyer Programs – Home Buyer Counseling

    Delaware First Time Home Buyer Programs require all borrowers on the loan application to complete 8 hours of homebuyer counseling credit from an approved HUD counseling agency.  You can register for Delaware Home Buyer Seminar by calling 302-703-0727 or online at www.DelawareHomeBuyerSeminar.com

    The Seminar is sponsored by the Neighborhood House and will provide credits toward required homebuyer counseling.

    If you would like to see if you can qualify for one or both of these Delaware first time home buyer programs or would like to receive more information, please feel free to contact us at 302-703-0727 or send an e-mail to JohnThomasTeam@primeres.com.  You can also APPLY ONLINE HERE.  Primary Residential Mortgage is an approved lender for all of the New Castle County Down Payment Assistance Programs.

    John R. Thomas – NMLS 38783

    Certified Mortgage Planner – Primary Residential Mortgage, Inc.

    302-703-0727 DE Office / 610-906-3109 PA Office / 410-412-3319 MD Office

    248 E Chestnut Hill Rd, Newark, DE 19713

    #Delawarefirsttimehomebuyer

    #DelawareDownPaymentPrograms

    Delaware First Time Home Buyer Programs – Delaware Bond Program

    John Thomas June 10, 2009 Tags: , , , ,
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    Delaware State Housing Authority

    Delaware Bond Program for First Time Home Buyers

    Delaware First Time Home Buyers have several options for first time home buyer programs.  The State of Delaware has several programs available for home buyers in all 3 counties (New Castle, Kent, and Sussex) of Delaware.  The Delaware Bond program is governed by The Delaware State Housing Authority.  The program is called The Single Family Mortgage Revenue Bond Program.  The program is commonly referred to as the Delaware First Time Home Buyer Program but is only one of many different programs available in Delaware.  Call 302-703-0727 to apply for the program or APPLY ONLINE

    This statewide program provides first mortgage financing at below-market interest rates to low- and moderate-income Delaware home buyers who have not owned a home in the past three years.  The state does not make these loans, you must contact one of the participating lenders.

    The program has income limitations for people to be eligible for the program.  The income limits are based on the number of people in the household and the county where the property is located.

    New Castle County –  $77,800 for 1-2 person $89,400 for 3 or more people

    Kent & Sussex County – $70,800 for 1-2 person $81,420 for 3 or more people

    There are also restrictions on the maximum purchase of the property.  For New Castle County the maximum purchase price is $366,920 for a 1 unit property.  Kent County has a maximum purchase price of $328,762 for a 1 unit property.  Sussex County has a maximum of $327,670 for a 1 unit property.

    The interest rate on the loan is set by the state of Delaware and is the same no matter which lender you use to get the loan.  The lender must be on the approved list.  There are two loan options, assisted and unassisted.  The assisted loan gives you a 3% grant for down payment assistance.  The current rates are;

    Unassisted – 3.875% fixed for 30 years

    Assisted – 4.375% fixed for 30 years

    The Delaware State Housing Authority also offers a 2nd mortgage program for up to $8,000.  This can be used for down payment and/or closing costs.  This 2nd mortgage can be used with the assisted loan or the unassisted loan.

    If you would like to apply for one of these programs or would just like more information please feel free to call me at 302-703-0727 or send an e-mail to DelawareMortgages@yahoo.com

    John R. Thomas – NMLS 38783

    Certified Mortgage Planner – Primary Residential Mortgage, Inc.

    302-703-0727 DE Office / 610-906-3109 PA Office / 410-412-3319 MD Office

    248 E Chestnut Hill Rd, Newark, DE 19713