DE Mortgage

DE Home Loan Help for New Homeowners

To own a home is considered by many to be the ultimate part of the American dream. Homeowners have more freedom and feel a sense of responsibility that is not generally present in rental situations. They also tend to feel more settled. If you are just beginning the home-buying process, understanding the DE home loan applications that are available to you is important. Luckily, Delaware residents can take advantage of the programs offered through the Delaware State Housing Authority. This mission of this agency is to work with the community to provide affordable housing options for Delaware residents.

First-time Home buyers

The most popular program that is available through the DSHA is probably the Single Family Mortgage Bond Revenue Program. The SMBRP helps families get into homes if they meet the qualifications for participation. Families must not have a current DE home loan, nor may they have had ownership on any home within the last three years. There are also income requirements, as well as standards for what types of homes qualify, and in what areas. There are only two exceptions to the parameters. These include a home being in a targeted area, and the applicant claiming a veteran's exemption. In these instances, it's possible that people who are current homeowners may still be able to participate. In addition, only permanent homes on foundations are considered in this stipulation. If you own a trailer on rented lend, or that is not set up permanently, you can still purchase a home via the DSHA program.

How to Use the Program

In order to participate in the DSHA first-time home buyer program, you must work with a participating lender. There are about twenty lenders who are currently listed as eligible to assist with the SMBRP. These lenders are located in New Castle, Kent and Sussex counties. Some examples of qualified lending institutions include Atlantic Home Loans,Community Residential Mortgage, Delaware National Bank and Weichert Financial Services. These lending brokers will be able to help you secure the lower interest rates and fees offered by this DE home loan program. They will be familiar with the requirements and be able to walk you through the loan process.

What Else?

There is much more that the DSHA offers than just assistance to first-time buyers. In fact, there are a total of seven programs that this Delaware agency makes available to private home buyers. Some of the other programs in place offer subsidies for taking out a second mortgage. There is also assistance available for families that need to relocate to be closer to their work. This program partners public and private funding for a DE home loan to help make that happen. Kent county has its own special program administered via this office, providing assistance for families who wish to move from public housing to a modest residential neighborhood. Finally, two different programs, known as DEMAP and HGAP, help mitigate the risk of foreclosure.

Unlike federal programs that tend to have a less personal touch, the Delaware State Housing Authority is specifically designed to work with locals to obtain or retain their DE home loan. The money used to administer these programs comes from local taxes and the decision-making authority is administered by real people, who know the challenges of Delaware's economy. You may not qualify for all these DE home loan programs, but they certainly deserve a closer look by anyone who is beginning the mortgage process.

Should I Use FHA Programs For My DE Home Loan?

Many people who are new on the housing market are hearing about HUD homes or loans that are administered through the FHA. These can be a fantastic option for a getting your first DE home loan. However, there are certainly considerations that you must look at when buying your Delaware home via this federally backed program. It's also important to understand exactly what the FHA offers to local residents of the state and what problems you can encounter along the way.

Not All Agencies are Equal

In theory, any home that is placed under an FHA program is supposed to meet minimum standards of safety and soundness. Performing these inspections, however, is not done by the FHA. Instead, participating lenders partner with various agencies to ensure that the homes offered are certified per the program's requirements. Frankly, not all lenders do a very good job of this. In the rush to get homes approved for new buyers like yourself, there is often corners that are cut in this inspection phase. The FHA regularly audits their partnering lenders to determine if they have followed the program to the letter. Some do, while others have significant issues. Audit reports are available for public viewing on the HUD website.

There are two reports that were published in 2009 for banks that offer DE home loans through the HUD program. The first bank that was audited was J.P. Morgan Chase Bank. This entity has a main office in Newark, Delaware. This report indicates that the bank was mostly in compliance, with only a few loans written that didn't meet the specifications. Another bank, however, wasn't as lucky when the reports were issued. The Wilmington Housing Authority passed inspections on houses with significant health and safety issues. When applying for an FHA loan, it would be a good idea to look up these audits and avoid lenders who aren't in compliance.

Making an Application

While you are on the HUD website searching the audit reports, there are several places you can look to start the application process for your DE home loan. First, look at the calculators. These are easy and free to use. HUD loan calculators allow you to input your specific income and credit information and get a good idea of what you would qualify for. Unlike many other quote programs offered, this tool is free; you don't even have to give your email address. Once you have this information in hand, you can take it to a qualifying lender that you already have a relationship with. However, if you haven't gotten that far, there are links on the HUD website that will take you to specific information that pertains to implementing HUD programs for your DE home loan. Look for the heading labeled "State Info" and click on "Delaware" to navigate to that page.

The HUD and FHA programs are extremely helpful to many families. They provide a way for families that have struggled to be able to get into a modest home of their own. It is fairly easy to qualify for these programs, but you must understand how they work and are administered. You will have to meet income requirements for your FHA DE home loan, as well as purchase a house that meets all the program parameters. In addition, don't forget that Delaware loan companies are sometimes overeager to approve these types of loans. Always check the compliance rates before selecting who you wish to work with for your FHA loan in Delaware.