The Delaware Housing Authority offers down payment assistance programs to local residents. To see what kind of Delaware down payment programs are offered by Delaware Housing Authority, visit their website: www2.state.de.us/dsha.
First-Time Homebuyer Tax Credit This Delaware down payment program is for first time home buyers. Commonly known in other states as mortgage credit certificates, Delawares first time home buyer tax credit is a federal income tax credit that allows Delaware borrowers to claim up to 35 percent of the annual interest paid on their mortgage. As per federal standards, the annual amount of the credit cannot exceed $2,000 per year. This tax credit can be used in conjunction with Delaware down payment and closing cost assistance programs.
Home buyers in Delaware get $4,000 down payment assistance through the New Castle County Down Payment Settlement Program.
PHONE: (302) 395-5602
Second Mortgage Assistance Loan This Delaware down payment program is a 3 percent, 30 year deferred loan capped at $8,000 which can be used to cover Delaware down payment and closing cost expenses. Down payment assistance can be paired with any of Delawares home ownership loans.
Delaware State Housing Authority
18 The Green
Dover, DE 19901-3612
PHONE: (302) 739-4263
Home buyers in Delaware get $10,000 down payment assistance through the Dover First Start Home Ownership Down Payment and Settlement Assistance Program.
PHONE: (302) 736-7175
Home buyers in Delaware get $1,500 down payment assistance through the Delaware First State Community Loan Fund Delawareans Save IDA Program.
PHONE: (302) 652-6774
Delaware down payment assistance programs are the real deal for people who want to own homes but the lack down payment is holding them back. This is possible because the Delaware State Housing Authority has down payment assistance programs. Delaware been a community area affected by the foreclosure crisis will finally buy and rehabilitate homes. Furthermore, the amount of the down payment affects the size of the monthly mortgage payments. It also affects how much one can borrow as well as the amount available for extra home buying costs.
One such program is the Neighborhood Stabilization Program (NSP), for new homeowners in these zip codes: 19805, 19802, 19720, 19709, 19702 and 19701. There are some home buyer qualifications for this program. The applicant should have an income below 120% the median income (for a family of four, $96,500). The applicant should also complete an 8 hours housing counseling approved by HUD.
Among the Delaware down payment assistance programs is the Vacant Homebuyer Assistance Program (VHAP). This program is an ideal to make your dream to own a home a reality. Successful new homeowners qualify for a 0% interest, 5 years and explicable loan of 6 % of the sale price for down payment. The qualifications for this loan are the same with those of the NSP.
An FHA loan is a government program that requires a down payment of a low 3% down. However, there are several limitations for this loan qualification. To be eligible the applicant should have a good credit history, borrow an amount set by the Delaware State Housing Authority. The borrower should occupy the home he/she is buying as opposed to rental or vacation purposes.
Another government program is the VA loan. This is a program for any interested applicant who is a U.S military veteran. Any U.S military veteran with satisfactory credit history and have enough income to cover monthly mortgage payments. However, there is a small VA fee based on the amount of down payment applied.
Below is a list of Delaware Down Payment Assistance Programs:
- First State Community Loan Fund Information
- New Castle County Down Payment Settlement Program
- Delaware Housing Authority
- 2018 Delaware Down Payment Assistance Programs
- Delaware State Housing Authority
- Dover First Start Home Ownership Down Payment and Settlement Assistance Program
- First-Time Homebuyer Tax Credit
- Second Mortgage Assistance Loan