Reliable Home Inspection Service

Helpful Resources for First Time Buyers

​

Interfaith Housing: http://www.ichde.org/

 

They offer homebuyers and first-time homebuyer education opportunities. Going through their First-Time Homebuyer Group Education Workshop and gaining a certificate can help you qualify for down payment and settlement assistance. Group courses will be available for registry in 2023.

The online course takes 3 -4 hours in one sitting but can be taken at leisure over multiple sittings.

If you choose to attend one of their first-time homebuyer seminars you may see John Kerrigan, the owner of Reliable Home Inspection Service teaching! If you do, ask him questions, he loves answering questions!

 

NeighborGood Partners (formerly known as NCALL Research): https://www.neighborgoodpartners.org/

​

They were founded 46 years ago and started in research, but re-branded recently to better showcase their strong community involvement. We also offer free first-time homebuyer seminars with NeighborGood. They also find grant money for potential homeowners and offer assistance with navigating home loans.

​

New Castle County

1. Down Payment & Settlement Assistance — DPS Program

• Description: Deferred-payment loan designed for low- to moderate-income first-time homebuyers. It helps with down payment and settlement costs.newcastlede.govFHA.com

• Loan Details:

  • Amount: up to $10,000 (as of July 1, 2022) newcastlede.gov

  • Terms: 15 years, with payments deferred for the first 2 years; payments begin in year 3 newcastlede.gov

• Eligibility:

  • First-time buyers (no homeownership in past three years) FHA.com

  • Minimum contribution: $500 cash FHA.com

  • Household income under 80% of area median income (e.g., ~$45,450 for one person up to ~$85,700 for eight persons)FHA.com

• Property Conditions: Must be primary residence, located in New Castle County (outside Wilmington), with a purchase price up to $379,500 FHA.com

• Additional Requirements: Complete a HUD-approved homeownership education program FHA.com

​

2. DSHA Statewide Programs (via Delaware State Housing Authority)

These are available statewide, including in New Castle County, and offer broader support.

a. Welcome Home Program (First-time buyers only)

• Offers conventional, FHA, VA, or USDA loans. Down payment options:

  • Smart Start: No assistance

  • First State Home Loan: 3% down payment/closing cost assistance, deferred

  • Diamond in the Rough: 5% assistance (FHA 203(k) eligible) destatehousing.com

• Eligibility: Credit score ≥ 620 (counseling required if ≤ 659); income and purchase price limits apply. destatehousing.com

b. Home Again Program (Repeat buyers also eligible)

• Similar to Welcome Home, except repeat buyers qualify. Includes Smart Start and First State Home Loan assistance. destatehousing.com

c. Statewide Additional Programs

• Home Sweet Home Program: Zero-interest forgivable second loan of $12,000 for essential workers, under $285,000 purchase price; forgiven 10% per year residing in home, forgiven fully after 10 yearsState of Delaware Newsdestatehousing.com

• Delaware Diamonds Home Loan: Similar structure, $15,000 benefit for essential workers (education, medical, retail, veterans, etc.) destatehousing.com

• Delaware First-Time Homebuyer Tax Credit: Federal tax credit up to 35% of mortgage interest paid (max $2,000/year); eligible even with Home Again; report via IRS Form 8396. destatehousing.com

 

Kent County (includes Dover)

1. DSHA Statewide Programs

Same offerings as above, with purchase price and income limits adjusted for Kent & Sussex Counties. destatehousing.com

• Example limits: Income for 1–2 person household ~ $108,800–$130,560⋅ Purchase price limit: ~$544,232 (non-targeted), $665,173 (targeted)

​

2. City of Dover – First Start Homeownership Program

• Loan Details: Up to $20,000, 0% interest, forgiven after 10 years if property remains primary residence; otherwise, repayment required. cityofdover.com

• Eligibility:

  • First-time buyers

  • $1,000 cash contribution (gift $ excluded)

  • Credit score ≥ 620

  • HUD-certified counseling required before closing

  • Income ≤ 80% of HUD median (e.g., ~$36,250 for 1 person to ~$68,350 for 8 people) cityofdover.com

  • Home must be inspected and safe (ASHI, lead assessment, warranty, etc.) cityofdover.com

​

Sussex County Programs

1) Sussex County Housing Trust Fund – Homebuyer Assistance:

• This county-run program provides interest-free forgivable loans (soft second mortgages) up to $30,000 for down payment and closing costs on homes in Sussex County. sussexcountyde.gov.

• Funds are first-come, first-served (typically replenished July 1) ccaor.com.

• Eligible households must have income ≤120% of area median (Sussex AMI) sussexcountyde.gov, limited assets (e.g. ≤$15,000 liquid assets), and the home must be their primary residence in Sussex.

• sussexcountyde.gov.

• Notably, buyers need not be first-time buyers, sussexcountyde.gov. Applicants must complete ≥8 hours of HUD-approved homebuyer counseling and receive a certificate scaor.com. Applications are submitted through Sussex County’s Community Development & Housing office (generally via a HUD-certified counseling agency). For full details and applications, see the Sussex County Housing Trust Fund Homebuyer Assistance page scaor.com. (Sources: Sussex County Housing Trust Fund policies. sussexcountyde.govscaor.com.)

​

Delaware State Programs

• DSHA Homeownership Loan Programs (Welcome Home & Home Again): The Delaware State Housing Authority (DSHA) offers 30-year fixed-rate mortgages to first-time buyers and repeat buyers . Welcome Home requires no homeownership in the past 3 years and minimum credit score 620 (scores <660 must take counseling).

  • ​ Purchase-price and income limits apply (Sussex County example: e.g. ~$544K max price; income ≤$125,120 for a 3+ person household)kissyourlandlordgoodbye.comdestatehousing.com. These loans come through DSHA-approved lenders statewide.

• First State Home Loan (DPA): A 0%-interest deferred second loan equal to 3% of the first-mortgage amount for down payment/closing costsnews.delaware.gov. Repayment is deferred until refinance, sale, or if the home is no longer owner-occupiednews.delaware.gov. Available to both first-time and repeat borrowers.

• Diamond in the Rough (DPA for Rehab): Up to 5% of the mortgage amount as a 0%-interest second loan for buyers using FHA 203(k) rehab financing Requires FHA 203(k) limited qualification; repayment is deferred like above.

• Home Sweet Home (Downpayment Loan): A temporary forgivable loan up to $12,000 for eligible homebuyers (home price ≤ $285,000). This 0%-interest loan is reduced by 10% per year the buyer lives in the home (primary residence) and forgiven after 10 years.

• Delaware Diamonds Home Loan: A temporary forgivable loan up to $10,000 for certain Delaware workers, news.delaware.gov. Eligible occupations include state/public employees (e.g. teachers, healthcare workers, first responders, military/veterans). The loan is 0% interest, forgiven 10% per year over 10 years of primary residence.

• Delaware First-Time Homebuyer Tax Credit: A federal income tax credit (35% of mortgage interest, up to $2,000 per year) for qualified first-time buyers. Buyers must purchase in DE and be first-time (no home ownership in the last 3 years). Income and price limits apply (e.g. for Kent/Sussex: non-targeted limit ≈ $108,800 for 1–2 people, $125,120 for 3+; higher limits in targeted areas). This credit is claimed on annual tax returns; buyers apply for it through DSHA’s participating lenders and the DSHA website.

(All DSHA programs are described on DSHA’s official site. Income and program limits are updated periodically; contact DSHA or a DSHA-approved lender for the latest values.)

 

Homebuyer Education & Counseling

• HUD-Approved Counseling Agencies: Both Sussex County and DSHA programs require or encourage homebuyer education. Sussex’s Trust Fund mandates ≥8 hours of HUD-certified pre-purchase counselingscaor.com. Delaware’s programs similarly require counseling for certain buyers (e.g. low credit score) and often for eligibility. HUD-approved agencies serving Sussex include First State Community Action Agency, NeighborGood Partners (NCALL), Interfaith Community Housing, CLARIFI, etc. These nonprofits (and others listed on DSHA’s website) offer free or low-cost courses and one-on-one counseling on budgeting, credit, and homebuying. Completing a certified homebuyer education course can also make you eligible for more assistance and may be required by lenders. (For example, Sussex’s program and many DSHA grants/loans require a certificate from a homebuyer education coursescaor.com.)

• Online/Homeowner Workshops: DSHA links to online education (e.g. eHome America) and regularly holds workshops. Local nonprofits sometimes advertise “first-time homebuyer seminars” in Sussex (check New Castle/Dover offices or DSHA event calendars).

​

Educational Courses & Counseling 

HUD-approved housing counseling agencies operating in New Castle and Kent Counties include:

• Clarifi, Inc. (New Castle)

• First State Community Action Agency (both counties)

• Housing Opportunities of Northern Delaware, Inc. (New Castle)

• Interfaith Community Housing of Delaware, Inc. (both)

• NeighborGood Partners (both)

• Neighborhood House, Inc. (New Castle)

• Telamon Corporation (statewide) 

​

​

Action Steps

1. Determine your location (New Castle vs. Kent) and check which programs you're eligible for.

2. Reach out to a HUD-approved housing counselor in your county to guide you through required education and applications.

3. Compare DSHA state-level programs (like Welcome Home, Home Sweet Home, tax credit) with county/local options to choose the most beneficial.

4. Review the eligibility criteria carefully—especially income, credit score, counseling, and property conditions.

5. Contact relevant county or city offices for brochures, applications, and further guidance:

   • New Castle DPS: Community Services Department

   • Dover’s First Start: Community Development Office 

   • DSHA: via their official site and approved lenders

​

Local and County Programs

​

Wilmington First Start Homebuyer Program

• The City of Wilmington offers a First Start grant (federal CDBG + city funds) to income-eligible first-time buyers of city homes. Applicants can receive up to the lesser of $15,000 or 6% of the purchase pricewilmingtonde.gov. Funds cover down payment, closing costs, or can be used to “buy down” the purchase price. 

• requirements (Nov 2023 update): household must be at ≤80% area median income (AMI) for the CDBG portion or ≤100% AMI for city funds; the buyer must contribute at least $1,000 toward costs; the mortgage must be 30-year fixed with no origination points; and buyers must be first-time (no home in 3 years), displaced homemakers, or single parents, wilmingtonde.gov.

​

​

New Castle County Down Payment & Settlement Assistance (DPS)

• New Castle County’s DPS Program provides a deferred loan to cover down payment/closing costs for qualifying buyers of homes outside Wilmington. Up to $10,000 is available (minimum $1,000)newcastlede.gov. The 15-year loan is 0% interest, with the first 2 years payments deferred, then 13 years of monthly payments, newcastlede.gov.

• Eligibility: buyers must be first-time (no home in past 3 years), have household income ≤80% of HUD AMI, occupy the home as a principal residence, and meet standard lending DTI and credit requirements.

• Property must be in New Castle County (outside Wilmington) and under ~$460,000 sale price.

​

Dover First Start 

• The City of Dover offers up to $20,000 in down payment/settlement assistance to first-time buyers of city homes. The funds are a 0%-interest second mortgage forgiven after 10 years (10% forgiven each year).

• Qualifying buyers must: be first-time (HUD-defined), have ≥$1,000 cash (gifts allowed beyond that); obtain a 30-year fixed mortgage through a city-approved lender; complete HUD-certified homebuyer counseling before closing; maintain credit ≥620; and meet income limits (≤80% AMI for Dover)

• The program also requires a home inspection (ASHI certified) and repairs for any hazards.

• Apply: Contact the Dover Community Development Office (Tracey Harvey, 302-736-7196) for application details, cityofdover.com.

​

Sussex County Housing Trust Fund (Homebuyer Assistance)

• Sussex County’s Housing Trust Fund (HTF) provides closing-cost assistance grants to homebuyers in Sussex County. Funds (federal ARPA & county) are awarded first-come. Recent rounds (summer–fall 2024) offered up to $20,000 per household. Buyers may use it for closing costs/settlement (no cash back to buyer).

• Eligibility: any household (not just first-time) earning ≤120% of Sussex AMI, and with ≤$15,000 in liquid assets. The home must be primary residence. Property types allowed: single-family, duplex, townhome, modular, etc. Closing assistance requires pre-purchase counseling: at least 8 hours with HUD-approved counselor (certificate needed), sussexcountyde.gov. 

• Applicants should watch the Sussex County HTF webpage for updates on future funding.

• Apply: Through a HUD-approved counselor – Sussex lists NeighborGood Partners, FSCAA, Interfaith CHD, or Neighborhood House for intake. Counselors gather income docs and submit applications to the County.

​

Important Details & Resources

• Eligibility: Most programs require the home to be the buyer’s primary residence and impose income and purchase-price limits that vary by location (e.g., Wilmington/Dover have city limits). Check each program’s specific limits on official sites or contact the administering agency.

• Applications: Statewide programs (DSHA loans/tax credit) go through participating lenders (see DSHA website or kissyourlandlordgoodbye.com)

•  Local programs often require contacting the municipality or county office (Wilmington 311, Dover CD office, Sussex HUD counselor).

• Applicants should apply early and check official websites for announcements of new funding rounds.

• Contacts/Links: Official program details and applications are on government sites. Key links include:

  • DSHA (State Housing Authority): destatehousing.com or kissyourlandlordgoodbye.com – see “Loan Products” and “Buying A Home” 

  • Wilmington City: “Real Estate & Housing” department pages (via Wilmington DE) and city news releases.

  • New Castle County: Down Payment & Settlement Assistance page.

  • City of Dover: Community Development forms (example PDF in Dover directory).

  • Sussex County: Housing Trust Fund page (SussexCountyDE.gov).

  • Delaware Division of Revenue: First-Time Home Buyer Tax Credit info, revenue.delaware.gov.

Each program’s official brochure or website should be consulted for the most current details and application steps.

​