Delaware FHA 203k Rehab Loans are used to repair or renovate properties all in one loan when you purchase a property. A typical question for a first time home buyer is if you can use one of the down payment assistance programs with an FHA 203k loan such as the Delaware State Bond Program. The answer is “no” because the bond loan is originated by a bank and then bought by the Bond program investor.
The 203k Loan can’t be bought right away because a repair escrow is set up for the repairs to be done and the distribution of those funds must be managed by the lender which the bond investor is not going to do. Most down payment assistance programs also require that the property meet occupancy requirements.