Guest Commentary: DSHA programs assist first-time home buyers
Eugene R. Young Jr. is the executive director of the Delaware State Housing Authority.
Homeownership is vital to building families’ economic mobility and success. Around 70% of Delawareans own their home — a figure that has remained stable for the last several decades. But nationwide, the homeownership rate has yet to recover from the Great Recession.
With challenging economic conditions, homeownership may be slipping out of reach for many families.
That is why Delaware State Housing Authority’s Housing Finance team works daily to provide competitive and community-minded mortgage products, which have helped 16,225 Delawareans find the home of their dreams since 2013.
In 2022, close to 1,000 families purchased a home with the authority’s help, and more than 75% of them also received closing cost and down payment assistance, as well as a first-time homebuyer tax credit certificate.
This year, we are going to double our impact through the use of two new homeownership programs — the Home Sweet Home program and the Delaware Diamonds home loan.
Home Sweet Home is a zero-interest forgivable second loan of $12,000, which will go towards down payment and closing cost assistance on homes with a sales price of $285,000 or less.
To date, approximately 500 homes in Delaware are listed within this range. The Home Sweet Home program is perfect for first-time homebuyers looking for their starter house or condo and repeat homebuyers looking to have a little more space for their growing families or hobbies.
Delaware Diamonds is a zero-interest forgivable second loan of $15,000 for essential workers who need assistance with down payment and closing cost fees. Examples of essential workers are those employed in the following industries: education, medical, retail and veterans.
All industries are indeed facing workforce shortages. At the Delaware State Housing Authority, we recognize that Delaware must act to attract and retain essential workers in our communities. Their unique skillset is in high demand, and our state must keep them. More importantly, with the dedication and hard work this population exhibits daily, they deserve the opportunity to live and work in the communities they serve.
For both programs, the loan balance will decrease by 10% up to year 10 and, ultimately, be forgiven as long as the homeowner(s) reside in the property as their primary residence. Buyers participating in these programs must meet eligibility requirements, which are published on kissyourlandlordgoodbye.com.
It’s no secret that Delaware is experiencing an affordable-housing crisis. Though we can’t solve this issue overnight, we can continue to make determined and aggressive steps to bring the American dream back within reach and strengthen communities throughout Delaware.
And that’s precisely what these programs are doing. I thank the Carney administration for the unprecedented $120 million investment in housing initiatives, which will translate into a safe, stable and shining future for all Delaware residents.
Home Sweet Home and Delaware Diamonds home loans are available statewide, and the authority will be working with our participating lenders to serve homeowners.
Not sure if you’re ready to purchase? DSHA and our partners will work with you the whole way.
Find information about connecting with a Housing and Urban Development-certified housing counselor for financial education and credit repair or check out the Tenant Rent Reporting Pilot Program, which is designed to build participants’ credit by reporting on-time rent payments to Equifax, Experian and TransUnion, and on-time utility payments to TransUnion. Participation is 100% free and voluntary.
Everyone deserves a chance at getting their first home. Because your roots often determine your routes, we must do everything we can to help families get there. The Delaware State Housing Authority is ready and eager to help build strong, solid and stable roots with our new programs.
More information can be found at kissyourlandlordgoodbye.com
