CITY AND COUNTY PROGRAMS

Kent County, New Castle County, Sussex County
DSHA Preferred Plus Down Payment Assistance Program

Assistance Available:
The Delaware State Housing Authority (DHA) has replaced the DSHA SMAL Loan Program and the DSHA Advantage 4 Grant Program with the DSHA Preferred Plus Down Payment Assistance Program as of May 1, 2018.

This program provides homebuyers with soft second mortgages that are 2% to 5% of their first mortgages. The funds may be applied to down payments and closing costs.

Qualifications:
The buyer must have a minimum FICO score of 620. The combined household income must not exceed the county income limits. The purchase price of the home may not exceed $417,000. If the buyer has a credit score of less than 660 attendance in an 8 hour HUD approved homebuyer counseling session is required. The buyer must be getting a first mortgage through an approved DSHA mortgage lender.

Approved property types include singly family homes, townhomes, and condominiums that meet agency approval for VA, FHA, and USDA loans. 1-4 residential unit properties that meet DSHA guidelines as well as planned unit developments (PUD) qualify. Double wide mobiles homes may qualify if they are being purchased with FHA loans and the buyer has a minimum FICO score of 660. Second homes, rental property, investment property, and co-ops are not eligible.

New Castle County
Down Payment Program

Assistance Available:
The New Castle County Department of Community Services offers low and moderate income residents of the county a Down Payment Settlement Program in the form of 8 year loans from $1000 to $5000. The first 3 years of the loan are deferred at 3% simple interest and payments are optional. The next 5 years of the loan require monthly payments at 3% interest. If the buyer pays the loan in full prior to the end of the 3 year deferral period, all interest is forgiven.

Qualifications:
The buyer’s total household income may not exceed 80% of New Castle County’s median income limits. Limits are adjusted for household size. There is a first time homebuyer (have not owned a home within 3 years) requirements. Mobile home owners qualify as first time buyers. Buyers must complete a Homeowner Education Program with an approved HUD housing counseling agency.

The home purchased must be the borrower’s primary residence. The maximum purchase price is $379,500. As a condition of the sale the property must be inspected by a certified home inspector and pass the Residential International Building Code and New Castle County’s codes.

New Castle County
New Castle County ReVaMP Homebuyer Program

Assistance Available:
The New Castle Department of Community Development offers a program designed to stimulate sales of vacant properties located in New Castle County through the New Castle County ReVaMP Homebuyer Program. The program gives up to $5000 as a deferred loan with 0 interest. If the buyer lives in the home for a minimum of 5 years, the loan is forgiven.

Qualifications:
The debt to income ratio may not exceed 52%. The buyer’s income level may not exceed 120% of New Castle County’s median income. The maximum purchase price for a home is $379,500. Buyers must complete a Homeownership Education Program with an approved HUD house counseling agency. Buyers may combine this loan opportunity with other New Castle County loan programs.

The property purchased must be located within New Castle County’s designated census tracts. Properties must be inspected by a certified home inspector prior to closing. The seller must certify that the home purchased has been vacant for a minimum of 90 days.