Low Income First-Time Homebuyers in Delaware

Posted by  on Apr 16, 2009
Delaware has quickly become one of the most wanted states to live. Who wouldn’t want to enjoy tax free shopping and some of the lowest real estate taxes in the country? In addition, you are only a few hours from major cities like Philadelphia, Baltimore, even Washington DC. However, if you are a single parent or low-income household, home ownership in Delaware may seem somewhat unattainable. The truth is there are numerous state and federally funded programs that offer help and hope to first-time homebuyers.

Many first-time homebuyers choose to work with the Federal Housing Authority (FHA) in obtaining a loan. The FHA is a government agency that was established by congress in 1934. They help those with bad credit, low-income borrowers, first-time buyers and even those buying their second or third home. One commonly used fixed rate mortgage by the FHA is the 203(b). One of the advantages of the 203(b) is that your costs at closing will be drastically reduced as they have the ability to finance up to 97% of your loan.

Another wonderful first-time homebuyer program that was implemented by the Delaware State Housing Authority is the Single Family Mortgage Revenue Bond Program (SFMRB). This program gives low and moderate-income first-time home buyers the opportunity to purchase their first home by offering financing at below-market interest rates.

Other agencies such as the Housing and Urban Development or HUD have the ability to help you get that first home by offering numerous assistance programs and resources. Through HUD you can obtain low-cost or free counseling on many issues related to homeownership, foreclosure, buying and mortgages. The HUD website lists homes that are for sale and also provide referrals to public housing agencies that can provide assistance.

In Sussex County, there is a program available is offered by the Habitat for Humanity. Annually they hold a series of “Orientation Sessions” explaining the process of obtaining a Habitat house in Sussex County. There are guidelines and applications requirements for eligibility and the selected homeowner may have to wait in excess of two years for their house to be built.

If you find that you need immediate assistance in finding affordable housing you can visit the Delaware Housing Coalition on line at www.housingforall.org. This website offers a wealth of information and links to various agencies in Delaware that will help families with temporary and permanent housing as well as provide referrals for legal services and financial assistance.

As with any mortgage, do your homework and shop around for the best rate. Do not allow yourself to be bullied or to become a victim of unfair lending practices.


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