Delaware State Housing Authority Homeownership Loan Programs

Delaware
State Housing Authority
DSHA
Homeownership Loan Programs
DSHA is committed to following all
aspects of the Fair Housing Act in our
efforts to promote responsible
homeownership and obtaining
competitive and safe financing for
same.
Overview of DSHA Mortgage
Programs
DSHA Mortgage loan products are designed to enable incomequalified families to achieve the dream of homeownership.
Advantages for DSHA borrowers include:
– Competitive interest rates
– Downpayment Assistance Options
– 30 year fixed rate loans
When DSHA funds are used to finance mortgage loans, certain
criteria are required including:
– Loan limits
– Income limits
– Owner-occupancy requirements
– Property must be located in Delaware
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DSHA Eligibility
There are three components used to determine
eligibility for DSHA Financing:
1. Income
2. Loan Limits
3. First-Time or Repeat Homebuyer Status
*Additional credit criteria may apply based on loan
product selected.
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Homeownership Program
Income Limits
County
Limit
New Castle, Kent & Sussex
$97,900
Income limits in effect as of 3/10/15 and are subject to change annually
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Homeownership Program Loan
Limits
COUNTY
New Castle
Kent
Sussex
I UNIT
$417,000
Loan limits above are as of 3/10/2015 and are subject to change annually.
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Current Products Offered
Welcome Home Loans
Mortgages For First-Time Homebuyers
Home Again Loans
Mortgages for Repeat Homebuyers
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DSHA Definitions
Welcome Home Product- First-Time Homebuyer Definition:
– A person who has not had an ownership interest in his/her principal
residence at any time during the last three years prior to the closing
date.
• Mobile homes not permanently affixed to the ground are not
considered real estate; the owner would be eligible for first-time
homebuyer rates.
Qualified Veterans as defined in 38 USC Section 101, are exempt from
the First-Time Home Buyer requirement.
– Must provide a copy of their DD 214 Form demonstrating military
discharge or release under conditions other than dishonorable.
Home Again Product – For Homebuyers who do not meet the First-Time
Homebuyer definition.
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Advantage 4
Advantage 4 provides a grant equal to 4% of the first
mortgage amount and is applied toward required
downpayment and closing costs, and then principle
reduction:
•
•
•
•
Welcome Home and Home Again loans with Advantage 4 rates
Standard 1st Mortgage documents
No repayment is ever required from the borrower
No additional lien is recorded on the property
DSHA provided downpayment assistance funds are considered
borrower’s own funds for the purposes of meeting agency
downpayment requirements.
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Second Mortgage Assistance
Loan (SMAL)
• Available to any borrowers that meet DSHA eligibility based on
income and purchase price limits.
• Loan amounts up to $8,000.
• Can be used with either Welcome Home or Home Again loans
• Funds must be used toward downpayment and settlement costs.
• 3% Simple interest.
• Repayment is deferred for 30-years, or until the first mortgage is
refinanced, or the property is sold or transferred; whichever comes
first.
• The SMAL is secured by a second lien against the property.
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Second Mortgage Assistance Loan
(SMAL) Additional Requirements
• The SMAL is only available in conjunction with a DSHA first
mortgage product.
– Household income and purchase price limits are the same as
for the DE First-Time Homebuyer Tax Credit.
– Borrowers must participate in a U.S. Department of Housing
and Urban Development (HUD)-approved housing counseling
product/home ownership education.
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SMAL Program Income Limits
County
1-2 Person
Households
3+ Person
Households
New Castle
$81,100
$93,265
New Castle County
Targeted
$97,320
$113,540
Kent & Sussex
$74,400
$85,560
Sussex County
Targeted
$89,280
$104,160
Income limits in effect as of 3/25/15 and are subject to change annually
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SMAL Program Purchase Price
Limits
County
Kent
New Castle
Sussex
Property
Census Tract
Non-Targeted
Targeted
Non-Targeted
Targeted
Non-Targeted
Targeted
1 Unit
$265,158
N/A
$371,250
$435,750
$309,375
$378,125
Type of Home
2 Units
3 Units
$339,456
$410,307
N/A
N/A
$475,238
$574,483
$580,847
$702,146
$396,048
$478,711
$464,059
$585,092
4 Units
$509,918
N/A
$713,934
$872,587
$594,929
$727,136
Purchase Price limits in effect as of 3/10/15 and are subject to change
annually
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SMAL vs. Advantage 4
SMAL
(Second Mortgage)
ADVANTAGE 4
(Grant)
$175,000.00
$175,000.00
4.0%
4.5%
Term (months)
360
360
P & I Payment
$835.48
$886.70
1st Mortgage Amount
Interest Rate
Difference
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$51.22
Down Payment
Assistance Provided
$8,000.00
$7,000.00
Repayment Amount
$15,424.38
$0.00
Available Loan Products
• FHA
• VA
• USDA Rural Housing
• Conventional Loans
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Rates
1st Mortgage
Program
FHA, VA, USDA
DSHA Down
Payment Program
Current Rates
3.5%
With
SMAL
Advantage
4
4.0%
4.5%
Conventional**
4.0%
With
SMAL
Advantage
4
4.5%
5.0%
(Sample rates as of 3/10/15 and are subject to change )
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Process
1. DSHA recommends that potential homebuyers meet
with one of Delaware’s HUD approved Housing
Counseling Agencies to determine if they are “purchase
ready”.
2. Meet with one of the DSHA Participating Lenders listed
on our website: DeStateHousing.com to be pre-qualified
for financing. Mention that you want to use DSHA
financing.
3. Once prequalified, work with a realtor to identify a
property and put together an offer to purchase the
property.
4. When your offer is accepted by the seller, notify your
lender and work with them to submit all required
paperwork to complete your loan application.
5. Your lender will take care of the rest of the process
directly with DSHA.
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Contacting DSHA
Telephone: 888-363-8808
Website: DeStateHousing.com
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