Delaware DSHA Preferred Plus Program Guide

Guide to the Delaware DSHA Preferred Plus Program

The Delaware DSHA Preferred Plus Program offers first-time homebuyers affordable financing options and down payment assistance to help reduce the upfront cost of purchasing a home. Designed to assist individuals and families in Delaware, the program provides access to favorable mortgage terms along with down payment support. For 2025, the program continues to offer valuable assistance to help buyers achieve homeownership. Below is a guide explaining how the program works, the eligibility requirements, and how to apply.

1. Program Overview:

• Purpose: The DSHA Preferred Plus Program is designed to make homeownership more accessible by offering affordable mortgage financing, along with down payment assistance. This program targets first-time homebuyers and individuals who meet certain financial criteria.
• Loan Terms: The program provides a 30-year fixed-rate mortgage, offering predictable monthly payments. The interest rates are competitive, helping ensure that monthly payments remain affordable throughout the life of the loan.
• Down Payment Assistance: In addition to the favorable mortgage terms, the program offers down payment assistance of up to 5% of the home’s purchase price. This assistance is a grant, meaning it does not need to be repaid, as long as the borrower remains in the home for at least five years.

2. Eligibility Requirements for 2025:

To qualify for the Delaware DSHA Preferred Plus Program, applicants must meet the following criteria:

• First-Time Homebuyer: The program is intended for first-time homebuyers. Generally, this means an individual who has not owned a home in the past three years. Exceptions may apply in certain areas or for specific buyer categories.
• Income Limits: Your household income must fall within the income limits set by the program, which vary depending on the county or city. These limits are updated annually based on the area median income (AMI) to ensure they remain aligned with local economic conditions.
• Credit Score: A minimum credit score of 640 is required to apply for the DSHA Preferred Plus Program. Some flexibility may exist, but meeting the minimum score is generally necessary for approval.
• Property Requirements: The home must be located in Delaware and must serve as your primary residence. The program is available for both new and existing homes, provided they meet the program’s price limits.
• Homebuyer Education: All applicants must complete an approved homebuyer education course. This course is designed to educate buyers on the responsibilities of homeownership, budgeting, and understanding mortgage terms.

3. How to Apply:

The application process for the Delaware DSHA Preferred Plus Program is simple. Follow these steps to apply:

• Assigned Loan Officer: Upon starting your application, you will be assigned a dedicated loan officer who will guide you through the entire process. This officer will help you verify eligibility, collect necessary documentation, and ensure you meet all requirements.
• Required Documentation: Be prepared to submit proof of income, tax returns, credit reports, and your homebuyer education course certificate as part of the application process.
• Submit Your Application: After gathering the required documentation, submit your completed application to your loan officer. They will process your application and keep you informed of your eligibility status and next steps.

4. Homebuyer Education Course:

• Mandatory Requirement: All applicants must complete an approved homebuyer education course. This ensures that you are fully prepared for the responsibilities of owning a home and managing a mortgage.
• Course Options: The course is available both online and in-person, and upon successful completion, you will receive a certificate that must be submitted with your application.

5. Down Payment Assistance:

• Assistance Amount: The program provides up to 5% of the home’s purchase price in down payment assistance. This assistance is a grant, and as long as the borrower stays in the home for at least five years, it does not need to be repaid.
• Grant Terms: The down payment assistance is provided as a grant, so you won’t need to worry about making payments or paying it back unless you sell or refinance the home within the first five years.

6. Finalizing the Loan:

• Approval Process: Once your application is approved, your loan officer will guide you through the next steps, including reviewing and signing your loan documents and preparing for closing.
• Closing Costs: While the program covers down payment assistance, you may still be responsible for certain closing costs that the program does not cover. Your loan officer will provide you with a complete breakdown of all costs involved.

Our expert loan officers are dedicated to making the homebuying process as simple and stress-free as possible. From start to finish, they will guide you through each step, ensuring you understand the details of the Delaware DSHA Preferred Plus Program and are fully prepared to take advantage of the assistance it offers. With their support, you can confidently move forward in your journey toward homeownership.