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Find Homeownership Incentives

Down Payment Settlement (DPS) Program

First Time Homebuyers Low to Moderate Income (LMI) Down Payment Assistance (DPA) Closing Costs

Type Of Program

Down Payment & Closing Costs

Program distribution

Deferred Second Mortgage

Program Originator

HUD, Community Development Block Grant Program funding

Amount

$0.00

Contact

melissa.moore@newcastlede.gov

Blocks

Location
Nationwide
Description

The DPA program offers deferred payment loans for low to moderate income, first time homebuyers to help with downpayment and settlement costs. The loan is for 8 years, the first 3 years are a deferral period and payments are optional, the remaining 5 years require monthly payments. The interest rate is 0%. The amount of the loan is between $1,00 to $5,000 and is determined based on a Housing Counselor's certified estimate of financing needed. Borrower must contribute a minimum of $500. The borrower must occupy home as principal residence for duration of loan, the loan must be repaid in full upon sale of the property or transfer of ownership. The borrower must complete a Homeownership Education Program with a New Castle County recognized HUD approved counseling agency

 

The total household income must be at or below 890% of the median income for New Castle County, adjusted by family size.

1 person: $50,500

2 person: $57,700

3 person: $64,900

4 person: $72,100

5 person: $77,900

6 person: $83,650

7 person: $89,450

8 person: $95,200

 

The property must be located in New Castle County, outside the city of Wilmington. The maximum selling price $379,500 (set by FHA limit). Property must be inspected by ASHI, NAHI or InterNACHI certified home inspector. Other inspections may be required for certain DPS funding. Homes built before 1978 must have lead visual inspection. Repairs must be completed according to HUD guidelines.

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AMI Limit

Yes

AMI

at or below 80%

Employer Participation Required

No

Must Earn Counseling Certificate

Yes

Eligibility Limitations

* Total household income at or below 80% of median income for New Castle County * First time home buyer (can't have owned a principal residence for the past 3 years) * Qualified as first time home buyer if owned a mobile home * Existing residential structures or new construction located in New Castle County, outside the city of Wilmington * Maximum selling price $379,500 (set by FHA limit) * Property must be inspected by ASHI, NAHI or InterNACHI certified home inspector. Other inspections may be required for certain DPS funding * Homes built before 1978 must have lead visual inspection * Repairs must be completed according to HUD guidelines

Cash Sale Permitted

No

Cosigner Permitted

No

Owner Financing Permitted

No

Must be Primary Residence

Yes

Program Provider's Contact Name

Program Provider's Address

Gilliam Building, 77 Reads Way, New Castle, DE 19720

Program Provider's Phone

3023955600

Program Provider's Email

melissa.moore@newcastlede.gov