The Delaware State Housing Authority along with Governor Jack Markell have announced the formation of two new programs to help Delaware first time home buyers with their property purchase.
One program, the DSHA-Paid Mortgage Insurance (MI) will offer owners a lower monthly housing payment by eliminating the requirement for them to buy mortgage insurance in instances when they haven’t put a 20% down payment at the time of initial purchase. The second program, dubbed the Home Purchase Rehab program, lets buyers purchase a home that needs work for a below-market interest rate as well as apply some fund for repairs and/or upgrades in one simple loan. This program also has provisions for up to $10,000 in down payment assistance.
Delaware.gov has more:
“The new DSHA-Paid Mortgage Insurance and Home Purchase Rehab programs will put the dream of homeownership within reach for more families in Delaware,” said Governor Markell. “When houses are purchased and get repaired, our neighborhoods and our economy benefit – people are put to work, materials are bought, and pride of ownership becomes more evident in our neighborhoods.”
“DSHA makes it a priority to search for new and creative ways to expand the number of programs available to homebuyers so that we can best meet their needs and offer products that will help them to be successful,” added DHSA Director Anas Ben Addi.
Generally, homebuyers who wish to purchase a home with less than a 20% downpayment are required to pay an additional monthly bill for mortgage insurance (MI). DSHA-Paid Mortgage Insurance will pay the required mortgage insurance cost on behalf of the homebuyer in exchange for a slightly higher interest rate. Homebuyers using the DSHA-Paid MI program will have a more affordable monthly housing cost because they will not be required to pay the monthly mortgage insurance premium in addition to their regular monthly mortgage payment. For example: If you purchase a home with a sales price of $186,000, this program will allow you to purchase the home with a down- payment as little as $5,580 and an estimated monthly payment of $914.00. This is a savings of over $70 per month, as compared to DSHA’s standard conventional loan with the same downpayment. This amounts to an annual savings of nearly $900 per year, or the equivalent of an average monthly mortgage payment.
>> read the complete story at delaware.gov