Delaware Valley Real Estate - OnPoint with Letitia Stevenson

Delaware Down Payment Assistance Programs (First Time Home Buyers)

Many first time home buyers find it nearly impossible to save cash for the upfront costs associated with purchasing a home. Down payment assistance programs (DAPs) and other buyer assistance/financing programs help home buyers overcome two common barriers to buying a first home:

• DOWN PAYMENT
• CLOSING COSTS

Looking for down payment and closing cost assistance? Here are a few potential options to consider:

1 | Delaware First Time Home Buyer Program (SFMRB) with SMAL (for down payment/closing cost assistance)

The Delaware First Time Home Buyers Program (SFMRB) offers 30-year mortgages with a fixed interest rate to first-time homebuyers, i.e., buyers who have not owned a principal residence within the past three years. Qualified buyers can also use the Second Mortgage Assistance Loan (SMAL) program for down payment and closing cost assistance up to $10,000 in conjunction with SFMRB program. With the SMAL program, buyer must participate in HUD-approved housing counseling program.

To get started today, contact Gail Frederick from Trident Mortgage (DSHA 2010 Top Producing Lender) for more details. Also, visit DSHA's Homeowenership Website for more information.

2 | USDA Rural Development Loans (require no downpayment)

USDA Rural Development (RD) Loans offer 30-year mortgages with a fixed interest rate, 100% financing (no down payment), and no monthly mortgage insurance. Also, any difference between the contract price and the appraisal value can be used to finance normal closing costs.  

USDA Home Loans are available in rural areas of the country, provided a market exists for the property, funding is available, and the home meets HUD's minimum property standards. Currently, there are two types of USDA loans available for new and existing single family homes:

1. USDA Rural Housing GUARANTEED Loan
2. USDA Rural Housing DIRECT Loan

Contact a Delaware RD Representative for specific details, requirements and borrower qualifications. Also, check out these additional resources:

• USDA Rural Development
• State RD Office Lookup
• Local RD Office Lookup
• Income & Housing Eligibility
• Notices of Funds Availability

3 | Delaware Down Payment Assistance Programs (DAPs)

Delaware Down Payment Assistance Programs (DAPs) offer financial assistance for qualified buyers. Depending on the program, DAPs may be used for down payment and/or closing costs. Of course, all programs are subject to provider restrictions including availability of funds.  

 *Loan Types (for Eligible 1st MTG):  F = FHA  |   V = VA  |  C = Conventional

Contact a DAP representative (see above matrix) for specific details about a particular program and borrower qualifications. 

The content provided in this post is presented as a courtesy to be used only for informational purposes and is not represented to be complete or error free. For the latest information, rates, requirements and updates on homebuyers programs, please contact a mortgage consultant and/or use the contact information and links provided throughout this post. 

I highly recommend that you contact a qualified mortgage consultant to obtain a pre-approval for financing that fits with your unique needs prior to shopping for a home. If you have any real estate questions, please contact me (Letitia Stevenson).