New Castle County Down Payment Settlement Program
Financial Assistance for Homebuyers in Delaware
The Down Payment Settlement loan amount is a minimum of $1,000, and a maximum of $5,000. The amount received by each borrower is determined by a housing counselor. The 8-year loan term is split into two segments: Period 1, consists of the first 3 years which is the deferral period where 3 percent simple interest is accruing and payments are optional. Period 2, is the remaining 5 years when monthly payments are required. If the loan is repaid in full within Period 1, all interest is forgiven. The loan must be repaid in full upon sale of property or transfer of ownership.
To be eligible for the Down Payment Settlement Program all applicants must meet a certain set of requirements. Applicants must be first-time homebuyers; those who have owned a principal residence in the previous 3 years are not eligible. They are also responsible for contributing at least $500 in cash.
The property being purchased must serve as the buyer’s primary residence for the life of the loan. Properties eligible under the Down Payment Settlement Program include existing, residential structures or new constructions located in New Castle County, outside the City of Wilmington. The program’s maximum purchase price for a single dwelling structure is $379,500.
The annual household income of each applicant must fall at or under 80 percent of the area median income for New Castle County (limits are adjusted for family size per HUD Guidelines). Additionally, applicants must complete a Homeownership Education Program approved by the New Castle County and HUD.
1 person household: $45,450
2 person household: $51,950
3 person household: $58,450
4 person household: $64,900
5 person household: $70,100
6 person household: $75,300
7 person household: $80,500
8 person household: $85,700
(Note: These figures were accurate at the time of publication and may no longer be current - visit the program website for updated information.)
Down payment assistance programs and/or grants were researched by the team at FHA.com. Please note that all programs listed on this website may involve a second mortgage with payments that are forgiven, deferred, or subsidized in some manner until resale of the mortgaged property.
FHA.com's compilation is not a complete list, but it can serve as a starting point in your search for the down payment assistance program or grant for your situation. It is up to the consumer to contact these entities and find out the specifics of each program.
Down Payment Grants in Delaware
In an effort to help residents purchase homes instead of staying in rented apartments for years to come, the Delaware State Authority offers eligible applicants affordable home loans and down payment assistance.
The New Castle County Department of Community Services offers first-time homebuyers the Down Payment Settlement Program. This program comes in the form of a deferred payment loan, to help cover down payment and closing/settlement costs associated with the purchase of a new home.
The New Castle County Department of Community Services promotes homeownership through the ReVaMP program, or "Remediating, Vacancies Making Progress.” This program helps to cover the down payment and closing costs for vacant homes in New Castle’s identified areas.
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