Delaware Valley Real Estate - OnPoint with Letitia Stevenson

DSHA Update August 2009 - New Bond Money $35M (Delaware First Time Home Buyers Program)

I just received notification from Gail Frederick (Mortgage Consultant, Trident Mortgage Company) that the Delaware State Housing Authority (DSHA) has just released $35 million in new bond money for 2009. The Single Family Mortgage Revenue Bond Program (SFMRB) provides low-interest first mortgage financing for Delaware first-time home buyers in low-to-middle income brackets. This program is commonly referred to as the Delaware First Time Home Buyers Program. For the purpose of this program, a first-time homebuyer is defined as one who has not owned a principal residence within the past three years.

Funds are available throughout the state from various lenders on a first-come, first-served basis. The program's lending institutions will offer 5.90% (0 Points) and 5.65% (1.50 points) interest rates, or 6.40% if a borrower gets a grant for the down payment and other loan costs. 

For eligibility, the gross income level is limited to $70,800 for an individual or a two-person household in Kent and Sussex Counties and to $77,800 in New Castle County. For larger households, the income limits are $81,420 and $89,470, respectively.  The maximum purchase price for an existing home in New Castle County is $366,990. The maximum is $328,762 in Kent County and $327,670 in Sussex County.

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 the Delaware First Time Home Buyers Program, making it possible for the buyers to purchase with little to no money out of pocket. 

The content provided in this post is presented as a courtesy to be used only for informational purposes and is not represented to be error free. For the latest information, requirements and updates on DSHA's affordable homebuyers programs, please visit DSHA's Homeowenership online. Or, contact a participating mortgage lender/mortgage consultant, like Gail Frederick from Trident Mortgage (DSHA 2009 Top Producing Lender), or, contact DSHA at 302.577.5001 (Wilmington), 302.739.4263 (Dover) or toll free at 888-363-8808. 

If you would like a list of DSHA's approved lenders or have any real estate questions, please contact Letitia Stevenson.