Delaware DSHA First Mortgage Program Guide

Guide to the Delaware DSHA First Mortgage Program

The Delaware DSHA First Mortgage Program offers affordable financing options for homebuyers in Delaware. This program helps make homeownership more attainable by providing low-interest mortgage loans to eligible buyers. For 2025, the program continues to offer favorable loan terms, including competitive interest rates and extended loan periods. Below is a step-by-step guide to help you understand how the program works and how to apply.

1. Program Overview:

• Purpose: The Delaware DSHA First Mortgage Program is designed to help first-time homebuyers and other eligible borrowers purchase their first home by offering low-interest, fixed-rate mortgage loans. The program helps reduce the upfront cost of homeownership by providing favorable loan terms and extended repayment periods.
• Loan Terms: The program offers 30-year fixed-rate mortgage loans, allowing borrowers to lock in a stable, predictable monthly payment for the life of the loan. The interest rates are competitive, ensuring that monthly payments are affordable.
• Assistance for First-Time Homebuyers: While the program is primarily for first-time homebuyers, exceptions may apply for some buyers in specific areas or situations, such as those purchasing in designated neighborhoods or meeting other financial criteria.

2. Eligibility Requirements for 2025:

To qualify for the Delaware DSHA First Mortgage Program, you must meet the following criteria:

• First-Time Homebuyer: The program is intended for first-time homebuyers, defined as individuals who have not owned a home in the past three years. However, certain exceptions may apply, such as for buyers purchasing in certain areas or for qualifying military veterans.
• Income Limits: Your household income must fall within the program’s income limits, which are based on the area median income (AMI) for your county or city. These limits are updated annually to reflect changes in the local housing market and economy.
• Credit Score: A minimum credit score of 640 is generally required for the DSHA First Mortgage Program. Lenders may have additional or stricter requirements based on other factors, such as debt-to-income ratios.
• Property Requirements: The property being purchased must be located in Delaware and must serve as your primary residence. Additionally, the home must meet the program’s price limits to ensure it remains affordable for first-time buyers.
• Homebuyer Education: All applicants are required to complete a homebuyer education course. This ensures that you are prepared for the financial responsibilities of homeownership and understand the terms of the mortgage loan.

3. How to Apply:

The application process for the Delaware DSHA First Mortgage Program is easy to follow. Below are the steps involved in applying:

• Assigned Loan Officer: Upon beginning your application, you will be assigned a loan officer who will guide you through the process. Your loan officer will help verify your eligibility, assist with gathering necessary documentation, and answer any questions you may have.
• Required Documentation: Be prepared to provide documents such as proof of income, tax returns, credit reports, and a certificate of completion for the homebuyer education course.
• Submit Your Application: Once you have collected all required documents, submit your completed application to your loan officer. The officer will process the application and notify you of your approval status and next steps.

4. Homebuyer Education Course:

• Mandatory Requirement: All applicants must complete an approved homebuyer education course. This course is essential to ensure that buyers are fully prepared for the responsibilities of homeownership.
• Course Availability: The course is available online and in-person, and upon successful completion, you will receive a certificate that must be submitted with your application to qualify for the mortgage.

5. Down Payment Assistance:

• Assistance Availability: While the Delaware DSHA First Mortgage Program itself does not provide direct down payment assistance, you may be eligible for additional assistance through other DSHA programs such as the Preferred Plus Program or the Down Payment Assistance Grant.
• Grant Terms: If eligible for down payment assistance, the terms may vary, with some programs offering grants that do not require repayment, as long as the borrower meets the requirements, such as remaining in the home for a certain number of years.

6. Finalizing the Loan:

• Approval Process: Once your application is reviewed and approved, your loan officer will guide you through the final steps, including signing the loan documents and preparing for the closing process.
• Closing Costs: While the DSHA First Mortgage Program may assist with mortgage terms, you may still be responsible for some closing costs. Your loan officer will provide a breakdown of all costs involved and explain which costs are covered by the program.

Our dedicated loan officers are here to ensure that your home buying experience is as smooth as possible. From initial application through closing, they will help you understand every step of the process and ensure you fully benefit from the Delaware DSHA First Mortgage Program. With their assistance, you can confidently move forward in your journey to homeownership.