First-Time and Repeat Homebuyers in Delaware Benefit from Launch of Four New Homeownership Programs by State Housing Authority
Dover, Delaware State Housing Authority (DSHA) has unveiled four new programs aimed at enhancing access to homeownership in the First State. Whether individuals are embarking on their first home purchase or seeking their next property, DSHA now offers mortgage products designed to transform the dream of homeownership into a reality. Let’s take a closer look at the four programs:
- Smart Start Home Loan: This program provides a first mortgage loan, formerly known as “DSHA unassisted,” with interest rates set daily and priced at or below current market rates. It is available for both conventional and government loans.
- Home Sweet Home Program (Temporary): Qualified homebuyers purchasing a home with a maximum sales price of $285,000 or less can benefit from a zero-interest forgivable second loan of $12,000. This loan can be used for down payment and closing cost assistance. Each year, the loan balance decreases by 10% if the homeowner(s) reside in the property as their primary residence. After ten years, the loan is fully forgiven upon verification of continuous residency.
- Delaware Diamonds Home Loan (Temporary): Aimed at “essential workers” residing in Delaware, this program offers a zero-interest forgivable second loan of $15,000 for the down payment and closing cost assistance. Eligible occupations include education, medical (including first responders), retail (e.g., grocery store employees), and veterans. Similar to the Home Sweet Home Program, the loan balance decreases by 10% each year, and full forgiveness is granted after ten years of continuous residency.
- First State Home Loan Program – FKA Preferred Plus: Formerly known as “Preferred Plus,” this program provides a zero-interest second loan equivalent to 4% of the final loan amount of the first mortgage. The loan assists with down payment and closing costs and is deferred until specific events occur, such as refinancing, property sales, transfer of title, or when the property is no longer the borrower(s)’ primary residence.
Delaware Governor John Carney emphasized the importance of these programs, stating, “The announcement of these programs is an important step in our efforts to provide all Delaware residents with the opportunity to enjoy the benefits of homeownership.” He thanked the Delaware State Housing Authority for their dedication and leadership in this endeavor.
Eugene R. Young, Jr., Director of DSHA, expressed the agency’s commitment to helping individuals access affordable homes, stating, “Our team is continuously formulating innovative and beneficial ways to help individuals access quality, affordable homes. These four programs will have a lasting impact on families, communities, and the state as a whole.”
The Smart Start and First State Home Loan programs will be subsidized by revenues generated from DSHA’s primary homeownership loan programs. The Home Sweet Home Program and Delaware Diamonds Home Loan are funded through a $5 million commitment from an additional $30 million supplement allocated by Governor Carney to DSHA.
Prospective buyers must meet eligibility requirements for DSHA’s homeownership loan programs, including income limits and a minimum credit score of 620. To assist renters in building credit, DSHA offers the Delaware Tenant Rent Reporting Pilot Program, which reports on-time rent payments to Equifax, Experian, and TransUnion, as well as on-time utility payments to TransUnion.
DSHA also provides financial counseling through HUD-approved housing counselors to support potential homebuyers in improving their credit scores and embarking on the path to homeownership.
In conjunction with the introduction of these new programs, DSHA has adjusted the income levels for its homeownership programs to create more opportunities for Delaware residents to purchase homes. The new income limits can be found on DSHA’s homeownership website.
These programs are available statewide, and DSHA will collaborate with its participating lenders to serve homeowners. A complete list of lenders can be found on DSHA’s website.
About the Delaware State Housing Authority: Established in 1968, the Delaware State Housing Authority (DSHA) provides quality, affordable housing opportunities, and supportive services to low- and moderate-income Delawareans. Apart from its role as the State’s Housing Finance Agency, DSHA serves as a Public Housing Authority in Kent and Sussex County and operates as a Community Development and Planning Agency. For more information about the Delaware State Housing Authority, please call (302) 739-4263 or visit the official website at www.destatehousing.com.
