Delaware State Bond Program for First Time Home Buyers
August 7th, 2011 by John Thomas
The Delaware State Bond Program provides home mortgages for first time home buyers purchasing homes in all three counties of the state of Delaware. The program is overseen by the Delaware State Housing Authority (DSHA). The program offers below market interest first mortgage loans to people who have not owned a home in the last 3 years. The mortgage loans must be obtained by an approved lender for the program.
The interest rate for the program changes each time the state of Delaware Issues a new bond. There are income restrictions for the program which are determined by the median income for the county. There are three counties in Delaware; New Castle, Kent, and Sussex. There are also maximum purchase price limits per county as well.
The DSHA also offers a down payment assistance loan in conjunction with this program. This loan program is called the Second Mortgage Assistance Loan (SMAL). This is a loan for up to $10,000 to help with down payment and/or closing costs. The loan is secured as a second mortgage against the property. The interest rate on this loan is 6%. There are no payments required for the first 30 years but it will accumulate interest each year. So if you make no payments the balance of the loan will keep going up.
The SMAL loan must be paid off if you refinance your first mortgage, sell the , transfer title to the property, or no longer occupied the property as your primary residence. You are also required to get a Home Inspection on the property that you are buying and this inspection must be done by an ASHI or NASCHI home inspector.
You can only apply for a SMAL loan from a participating lender. You must also complete 8 hours of home counseling through a HUD approved counseling program. If you would like to sign up for a 2 hour introductory class for your first 2 hours of counseling, you can sign up at www.DelawareHomeBuyerSeminar.com.
If you would like more information or would like to apply for a Delaware Mortgage Bond Loan or a SMAL Loan you can call 302-703-0727 or send an e-mail to jthomas@primeres.com
John R. Thomas
NMLS – 38783
Certified Mortgage Planner
Primary Residential Mortgage
248 E Chestnut Hill Rd
Newark, DE 19713
302-703-0727 Office
Free First Time Home Buyer Seminar Every Month.
I am a Delaware native who has been actively involved in the Mortgage and Finance industries for over 10 years. Call me at 302-703-0727