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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 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.

Delaware Down Payment Grants

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 First-Time Home Buyer is anyone who has not had ownership interest in a primary residence within the last three years. Other types of first time home buyers: 

  • Owners of mobile homes that are not permanently affixed to a permanent foundation

If you have any doubt about your first-timer status, you can contact the John Thomas Team for an overview. Our First Time Home Buyer Seminars are an excellent way to get prepared and gain all the information you need to take your next steps. 

What to do if You’re Preparing to Buy in Delaware

If you feel you may be eligible for a Delaware down payment grant or a similar program, there are steps you can take to get started. 

  1. Sign up for one of our first-time home buyer seminars in Delaware.
  2. Complete household Budget to determine maximum monthly mortgage payment
  3. Contact the John Thomas Team with Primary Residential Mortgage to start pre-approval process.
  4. Start keeping a dedicated savings to help with costs and expense.

One of the most important steps is to make sure you understand the fine print involved in the program, especially what actions could result in you being required to pay back the grant. These actions can vary and might include renting out your home, taking out a home equity line of credit, refinancing, or selling before the time frame is over. Don’t get discouraged – the money is out there to help, it’s just about being able to find it! Much of the Down Payment Assistance Funds across the country go unrewarded every year.

How do I Qualify for the Delaware Down Payment Assistance Grant?

There are many methods we can help you navigate as a home buyer, including things like down payment assistance and low down payment loans at affordable interest rates. The John Thomas Team is ready to help you on your journey! Contact us by calling  302-703-0727, visit our siteor simply APPLY NOW

 

About John Thomas

John Thomas and his team are long-time Delaware natives. They know the local real estate market as well as they know the loan products that help them serve it. Dedicated to helping first-time buyers; the John Thomas Team are experts on first-time buyer loan programs (FHA, VA, USDA) and conduct monthly first-time buyer seminars that have been attended by more than 3000 Delaware buyers.

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