The Delaware State Housing Authority (DSHA) announced its “Diamond in the Rough” program, a lending program designed to make homeownership more accessible and affordable.
The program leverages the Federal Housing Administration’s (FHA) existing limited 203k program and provides a mortgage product that combines home purchase costs with funding for minor renovations up to $35,000.
The “Diamond in the Rough” program streamlines the financial process for homebuyers by consolidating the purchase price and approved renovation expenses into a single mortgage.
“We are extremely proud to launch the Diamond in the Rough program, which embodies our mission to make homeownership more attainable and sustainable for Delaware residents,” said Cynthia Karnai, director of DSHA. “By combining an FHA program with our down payment and closing costs assistance, we provide a comprehensive, localized solution that helps homebuyers turn houses that need a little love into their dream homes.”
The program supports a range of minor home renovations, including kitchen remodeling without structural changes, interior and exterior painting, appliance replacements and upgrades, window and door replacements, roof, gutter, anddownspout repairs or replacements, and even pool repairs.
The program aims to encourage revitalization and enhance neighborhood appeal.
In addition to the “Diamond in the Rough” program, DSHA offers four additional mortgage products to assist Delaware residents in achieving homeownership:
– Smart Start Home Loan: A first mortgage loan with competitive interest rates at or below current market rates for conventional and government loans.
– Home Sweet Home Program (Temporary): A zero-interest, forgivable second loan of $12,000 for down payment and closing cost assistance on homes with a maximum sales price of $285,000 or less.
– Delaware Diamonds Home Loan (Temporary): A zero-interest, forgivable second loan of $10,000 for down payment and closing cost assistance for essential workers in education, medical fields, first responders, and veterans. To view the eligible occupation list, please visit: https://kissyourlandlordgoodbye.com/help-for-homebuyers/.
First State Home Loan Program: A zero-interest second loan providing 4% of the first mortgage amount for down payment and closing cost assistance, with deferred principal until refinancing, sale, transfer of title, or the property is no longer the borrower’s primary residence.
The “Diamond in the Rough” program and DSHA’s other homeownership initiatives are available statewide through participating lenders listed at https://kissyourlandlordgoodbye.com(https://kissyourlandlordgoodbye.com/lenders/).
Income limits for these programs have been adjusted to include more would-be homeowners.
Homebuyers participating in DSHA’s programs must meet eligibility requirements, including income limits and a minimum credit score of 620. DSHA also offers financial counseling through HUD-approved housing counselors to assist potential homebuyers in improving their credit scores and preparing for homeownership. Income limits for these programs can be found on DSHA’s homeownership website: https://kissyourlandlordgoodbye.com/.
For more information about the Delaware State Housing Authority and its homeownership programs, please visit www.destatehousing.com (https://www.destatehousing.com/) or call (302) 739-4263.
