DELAWARE - The Delaware State Housing Authority announced new programs on Wed. with the goal to increase access to homeownership in Delaware.
The DSHA says one program is called the Smart Start Home Loan program. It is a first mortgage loan formally known as “DSHA unassisted.” Interest rates will be priced daily and will be at or below current market rates. This program is available for conventional and government loans.
The DSHA says another program is called the Home Sweet Home Program, which is temporary. It provides a zero-interest forgivable second loan of $12,000 can be used for a down payment and closing cost assistance for homebuyers purchasing a home with a maximum sales price of $285,000.00 or less. Each year the homeowner(s) resides in the subject property as their primary residence, the loan balance will decrease by 10 percent up to year 10. The loan will be forgiven after 10 years with verification the homeowner(s) has lived in the property as their primary home. This program is being funded by a $5 million commitment Governor John Carney allocated to the DSHA.
Another program is the Delaware Diamonds Home Loan program, which is also temporary. It provides a zero-interest forgivable second loan of $15,000 to be used for down payment and closing cost assistance. This program will be eligible to current “essential workers” who live in Delaware who work in these fields: education, medical, including first responders, retail such as grocery, general, and wholesale store employees, and veterans. This program is also being funded by a $5 million commitment Carney allocated to the DSHA.
The DHSA says with this program, each year the homeowner(s) resides in the subject property as their primary residence, the loan balance will decrease by 10% up to year 10. The loan will be forgiven after 10 years with verification the homeowner(s) has resided in the subject property as their primary residence.
According to the DSHA, the fourth program is the First State Home Loan Program, which provides a zero-interest second loan. It's formerly known as "Preferred Plus," and provides a 4 percent down payment and closing cost assistance loan based on the first mortgage loan amount.
The DSHA says it is also adjusting the income levels for its homeownership programs to provide more opportunities for residents to purchase homes in Delaware. The new income limits can be found on DSHA’s homeownership website. These programs are available statewide.