Wilmington Delaware First Start Homebuyer Down Payment Program
City of Wilmington Delaware First Start Homebuyer Down Payment and Settlement Assistance Program is a new program to help Delaware First Time home buyers purchasing in the City of Wilmington, Delaware. The program is designed to promote homeownership in the city limits and is available beginning November 13, 2023. The down payment program will provide eligible homebuyers with loans of up to $15,000 for down payment and settlement costs for purchasing a home within the city of Wilmington. You can apply for the program by calling the John Thomas Team with Primary Residential Mortgage at 302-703-0727 or APPLY ONLINE
What are the Guidelines for the Wilmington First Start Home Ownership Down Payment Program?
The City of Wilmington DPA Program provides up to $15,000 toward down payment and settlement costs for eligible home buyers purchasing in the city limits of Wilmington, Delaware. The guidelines are as follows:
- Homebuyer must NOT have owned their principle residence at any point in the three years prior to settlement EXCEPT for displaced homemakers or single parents.
- The property MUST be your principle residence
- MUST use an approved lender that is approved by the City of Wilmington Department of Real Estate and Housing
- Homebuyer MUST have at least $1,000 to contribute towards settlement costs
- Homebuyer MUST complete a homeownership counseling program with HUD certified counselor before signing a sales contract or applying for a mortgage.
- A visual lead assessment for lead-based paint must be conducted on all homes built prior to 1978. Repairs must be completed according to HUD Guidelines.
- New Construction Homes MUST have a one-year HUD approved warranty
- An American Society of Home Inspectors (ASHI) home inspection must be completed on all properties, and all major defects identified by the inspection must be repaired by a licensed contractor prior to closing.
- Homebuyer’s income cannot exceed 80% of the median income based upon family size for New Castle County as defined annually by the United States Department of Housing and Urban Development for the CDBG Funds and not exceed 100% for General Funds.
What are the Terms of the Wilmington Down Payment Assistance Program?
The Wilmington First Start Home Ownership Down Payment and Settlement Assistance Program is a forgivable loan for 6% of the purchase price up to a maximum of $15,000.
The Down Payment Loan is ONLY forgivable if you live in the property as your primary residence for a minimum of 10 years. If you move out or sell the property prior to the 10 year period then you will have to pay back the full amount of the loan.
Borrowers will still need to select a first mortgage loan program and the eligible mortgage loans are as follows:
What are the Income Restrictions for the City of Wilmington DPA Program?
The City of Wilmington First Start Homebuyer Down Payment and Settlement Assistance Program requires the household income to be less than 80% of the HUD Median Income limit for the $300,000 funds from Federal CDBG Funds or below 100% of the median income for the $200,000 General Fund. You can read more info on the City of Wilmington Real Estate & Housing Site
Below is table for 80% of Median 2023 Income Limits:
1 Person Household: $62,500
2 Person Household: $71,400
3 Person Household: $80,350
4 Person Household: $89,250
5 Person Household: $96,400
6 Person Household: $103,550
7 Person Household: $110,700
8 Person Household: $117,850
Below is table for 100% of Median 2023 Income Limits:
1 Person Household: $78,125
2 Person Household: $89,250
3 Person Household: $100,438
4 Person Household: $111,563
5 Person Household: $120,500
6 Person Household: $129,438
7 Person Household: $138,375
8 Person Household: $147,313
What Type of Homes Can You Buy with the City of Wilmington Grant Program?
The eligible property types for using the Wilmington Down Payment Assistance Program are as follows:
- Single Family Residence
- Row Homes
How do you Apply for the City of Wilmington First Start Homebuyer Down Payment Program?
If you are interested in learning more about city of Wilmington DPA Program or would like to apply, please give the John Thomas Team with Primary Residential Mortgage a call at 302-703-0727 or you can APPLY ONLINE