Hey there! If you're thinking of buying a home for the first time, and haven't saved up for a down payment, you still might be able to get it done.

Before I jump into the programs, let me briefly explain how down payment assistance works.

How it works

Down payment assistance comes in two forms: a grant, or a loan

A grant doesn't require repayment.

A loan does require repayment, but there are 3 different ways:

Monthly repayment. This is where they charge you interest and a monthly payment until the loan is paid off

Silent second. This is where they don't charge you interest, they don't charge you monthly payments, they just require that you pay it back when you sell the home.

Forgivable. This is where they forgive the loan as long as you meet certain criteria. A common requirement is that you live in the home as your primary residence for a set number of years. Once you've completed the timeframe, they forgive your loan and you don't need to pay it.

Approved lenders only

These programs can only be handled by approved lenders. If you would like help from a local realtor familiar with the programs and lenders with access, fill out this form here and I will connect you with one.

Now that we have that out of the way, let's jump in! Below are the local programs available to help make homeownership more accessible.

Delaware

Delaware State Housing Authority (DSHA) Preferred Plus Program

• What It Offers: Provides down payment assistance in the form of a no-interest second mortgage.
• Who Qualifies: First-time and repeat homebuyers meeting income and credit requirements.
• Income Limits: Varies by county.
• Repayment: The loan is forgiven after 10 years if the buyer remains in the home.
• Website: https://www.destatehousing.com/wp-content/uploads/2024/04/2024B-Program-Notice-Final-1.pdf.

New Castle County

• Down Payment and Settlement Assistance Program (DPS): Offers loans up to $10,000 to assist with down payment and settlement costs for low- and moderate-income households. The loan term is 15 years, with payments deferred for the first two years.
  • Contact Information:
    • Melissa Moore, Administrator
    • Phone: (302) 395-5698
    • Email: [email protected]
  • Website: https://www.newcastlede.gov/1268/Down-Payment-Settlement-Assistance-Progr

Sussex County

• Sussex County Housing Trust Fund Homebuyer Assistance: Provides funding to assist qualifying households with the purchase of a home in Sussex County. Funds are available on a first-come, first-served basis.
  • Website: https://sussexcountyde.gov/Housing-Trust-Fund-Homebuyers

City of Wilmington

• First Start Homebuyer Program
  • Assistance: Provides financial assistance to eligible first-time homebuyers for down payment and closing costs.
  • Eligibility: Applicants must meet income requirements and other criteria.
  • Website: https://www.wilmingtonde.gov/Home/Components/News/News/6662/225

City of Newark

• Home Buyer Assistance Program
  • Assistance: Offers deferred loans to assist with down payment and settlement costs for first-time homebuyers purchasing within Newark city limits.
  • Eligibility: Applicants must meet income guidelines and complete a homebuyer counseling course.
  • Website: https://newarkde.gov/285/Resident-Assistance-Programs#:~:text=Home%20Buyer%20Incentive%20Program%20%2D%20The,within%20the%20City%20of%20Newark.

Note: Program availability, eligibility criteria, and assistance amounts can change. It's recommended to contact the respective city housing departments or program administrators directly to obtain the most current information and application procedures.

These programs can only be handled by approved lenders. If you would like help from a local realtor familiar with the programs and lenders, fill out this form here and I will connect you with one.