Welcome Home Mortgage Program

Administrator: Delaware State Housing Authority (DSHA)

Overview:
Competitive mortgage program for first-time homebuyers offering below-market interest rates and financing options through the Smart Start Home Loan Program.

Eligibility:

• First-time homebuyers defined as those who have not owned a home as a primary residence in the past three years
• Must meet income limits (varies by household size)
• Minimum credit score: 620
• Must be Delaware resident

Financing Options:

• Conventional financing
• FHA financing
• VA financing
• USDA financing
• Discounted mortgage rates (in some cases as low as 5.5%)

Combination with Down Payment Assistance:
Can be combined with any of the following DSHA down payment assistance programs:

Home Sweet Home (Temporary)

• Benefit: Zero-interest forgivable second loan of $12,000
• Eligibility: Maximum home purchase price of $285,000
• Forgiveness Structure: Loan balance decreases by 10% annually for 10 years if homeowner maintains primary residence; fully forgiven after 10 years with verification
• 2023 Performance: 180 families received assistance totaling $2,160,000

Delaware Diamonds Home Loan (Temporary)

• Benefit: Zero-interest forgivable second loan of $10,000
• Eligibility: Must work in Delaware in qualifying occupations:
  • Delaware State employees
  • Public and private school employees
  • Healthcare workers (Bayhealth, Beebe, Nemours, St. Francis, Christiana Care, VA Hospital)
  • First responders (full-time and volunteer): firefighters, police officers, paramedics, EMTs
  • Active-duty military
  • Qualified veterans
• Forgiveness Structure: Same as Home Sweet Home (10% annually, 10-year full forgiveness)
• 2023 Performance: 147 families received assistance totaling $2,148,000

First State Home Loan

• Benefit: Zero-interest second loan providing 3% of the first mortgage final loan amount
• Repayment: Principal deferred until refinance, sale, transfer of title, or property is no longer primary residence (whichever comes first)

Geographic Scope: Statewide

Additional Support:

• HUD-approved housing counseling available to help improve credit scores
• Participating lender network throughout state

Application Process

1. Check Eligibility:
   • Verify first-time homebuyer status (no primary residence ownership in past 3 years)
   • Review income limits on DSHA website
   • Confirm minimum credit score of 620
2. Housing Counseling (Recommended):
   • Find HUD-approved housing counselor at: https://kissyourlandlordgoodbye.com/housing-counselors/
   • Counselors can help improve credit scores if needed
3. Work with Participating Lender:
   • Select lender from DSHA's participating lender network: https://kissyourlandlordgoodbye.com/lenders/
   • Lender will guide application process for mortgage program
4. Select Down Payment Assistance Program:
   • Determine which program(s) applicant qualifies for (Home Sweet Home, Delaware Diamonds, or First State Home Loan)
   • Coordinate with lender regarding down payment assistance

Required Documentation:
Specific documentation requirements not detailed in provided materials. Contact participating lender or DSHA for detailed requirements.

Income Limits:
Available at https://kissyourlandlordgoodbye.com/