Buying a Home with Low Income in Delaware? Here are Resources.

Homeownership Assistance Programs in Delaware

Are you considering purchasing your first home in Delaware? The state offers various programs designed to assist first-time homebuyers, low-income individuals, and those unfamiliar with the home-buying process. Below, we’ve outlined some valuable programs and resources that might make your dream of homeownership more achievable.

1. Down Payment Assistance through the DE Housing Authority

If you’re a first-time homebuyer in Delaware, the DE Housing Authority could assist with your down payment. They offer support that may cover the entire down payment amount, as well as help with closing costs and other associated fees. However, eligibility criteria set by the Delaware Housing Authority must be met to qualify for this assistance.

2. USDA Financing for Rural Areas of Delaware

Residents of rural areas in Delaware may benefit from the USDA’s 100% financing mortgage program. This initiative aims to assist low-income buyers in finding affordable homes. While the rural home requirement is stringent and availability may vary, qualifying individuals may secure a mortgage without a down payment.

3. USDA Guaranteed Mortgage for Moderate Income

The USDA also offers a guaranteed mortgage program, which doesn’t provide 100% financing but may be easier to obtain for moderate-income individuals. Eligibility involves meeting credit and income requirements, along with other guidelines set by the USDA and your lender.

4. Housing Authority Resources for Affordable Homes

Delaware’s Housing Authority can connect you with various resources, including FHA loans, to help you purchase a home below the market average. While there are no specific requirements for home searches or buyer education, income requirements may apply if utilizing one of their purchasing programs.

5. Habitat for Humanity Assistance

The Habitat for Humanity, though typically on a waitlist schedule, may assist those in need of safe and affordable housing. Applicants are required to contribute “sweat equity” under the guidance of a general contractor and must meet specific guidelines, including the ability to afford a mortgage.

6. Veteran Loans for Homebuying

Veterans entitled to VA benefits can explore home loans with favorable terms. These loans often come with lower interest rates, potentially saving on mortgage costs. Veterans must fulfill certain obligations in addition to their military service to qualify for these loans.

7. County-Specific Assistance Programs

Delaware’s counties also offer homeownership assistance programs:

Kent County

Residents of Kent County may access programs to save on down payments, receive loans for closing costs, and find affordable homes. Eligibility criteria include income, creditworthiness, and residency.

New Castle County

New Castle residents, as part of New Castle County, can benefit from programs like the Down Payment Settlement Program (DPSP), assisting with down payments. Specific requirements, including income and residency, must be met.

Sussex County

Aspiring homeowners in Sussex County can explore options provided by the community development division. The county offers assistance to make home searches more affordable, including help with down payments and closing costs. Eligibility criteria include income and residency requirements.

Before embarking on your homebuying journey, carefully review the criteria for each program and consult with relevant authorities to ensure you meet the necessary qualifications.

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