Delaware State Housing Authority Launches Preferred Plus Program

The Delaware State Housing Authority (DSHA) is committed to transforming the housing landscape for its residents, moving them from the cycle of renting to the joys of homeownership. Recognizing the challenges many face in accumulating enough funds for a home purchase, DSHA offers affordable home loans and down payment assistance to eligible applicants.

Comprehensive Financial Assistance for Homebuyers

DSHA provides a 30-year, fixed-rate mortgage loan with interest rates that are competitive with or below standard market rates, catering to qualified buyers. These loans are compatible with various standard mortgage programs, including conventional, VA, FHA, and USDA mortgages. In addition to these favorable loan terms, DSHA introduced the Preferred Plus assistance program. This program offers a no-interest second mortgage loan ranging from 2% to 5% of the total loan amount. These additional funds are incredibly flexible, allowing applicants to use them towards either the down payment or closing costs. The repayment of this loan is deferred until the home is sold, transferred, refinanced, or ceases to be the borrower’s primary residence.

Eligibility Criteria for Applicants

To be eligible for DSHA’s homeownership and assistance programs, applicants must meet specific criteria:

• The maximum household income must align with the set limits for each county:
  • New Castle County: 1-2 people: $113,400; 3 or more people: $141,750
  • Kent & Sussex County: 1-2 people: $99,600; 3 or more people: $124,500
• A minimum credit score of 620 is required. However, applicants with credit scores of 659 or below are required to participate in housing counseling, ensuring they are well-prepared for the responsibilities of homeownership.
• The maximum loan amount that can be availed is $417,000, and there is no set limit on the purchase price of the home.

The DSHA’s Preferred Plus Program represents a significant effort to make homeownership more accessible and affordable for Delaware residents. By offering a combination of competitive mortgage options and flexible down payment assistance, the program is a beacon of hope for many who aspire to transition from renting to owning their own home.