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Rebuilding Our Communities (ROC)

This loan provides downpayment and closing cost assistance of $15,000 to assist first-time homebuyers with purchasing a foreclosed or abandoned home in a qualified census tract.

How To Apply

1. Make sure you (the borrower) meet all borrower requirements.
2. Ensure the property you want to purchase meets all property requirements.
3. Understand the loan terms and related details.
4. Contact a participating mortgage lender and say you want to participate in this program.
5. Please view Home Buyers' Information Guidebook

Borrower Qualifications

Maximum household income for eligibility are as follows:

Income Limits For Households at 120% of Area Median Income (AMI)
County	1 Person Household	2 Person Household	3 Person Household	4 Person Household	5 Person Household	6 Person Household
New Castle	$68,450	$78,250	$88,000	$93,725	$93,725	$93,725
Kent	$53,100	$60,650	$68,250	$75,850	$81,900	$84,295
Sussex	$52,600	$60,100	$67,600	$75,100	$81,150	$84,295

Notes

1. Borrowers must qualify for a primary mortgage financed through DSHA.
2. Borrowers must participate in a U.S. Department of Housing and Urban Development (HUD)-approved housing counseling program/home ownership education.

Property Qualifications

• All properties must be sold at a minimum discount of at least 1% of the appraised value.
• All properties must be in a qualified ROC census tract.
• All homes must be inspected by an ASHI, NAHI-CRI, or NACHI Delaware chapter home inspector.
• All homes built prior to 1978 must have a lead based paint visual assessment.
• In the event the home fails the visual inspection, deteriorated paint surfaces must be stabilized.
• Current rental properties are not eligible to be purchased.

Loan Terms

• Forgivable zero interest second mortgage loans in the amount of $15,000 for downpayment and closing costs assistance for the purchase of foreclosed or abandoned single-family housing in qualified census tracts.
• Borrower(s) purchasing a home in need of rehabilitation must use a FHA 203(k) mortgage in connection with a DSHA-financed mortgage.
• Forgiveness period of 10 years. Loans will be forgiven pro rata monthly over the 10 year period.
• ROC loans will be secured by a lien against the property.
• ROC loans will be used for downpayment and settlement costs. Any amount in excess of those costs must be used to reduce the initial loan amount of the first mortgage.
• All loans will be at 0% interest and deferred until the sale, transfer of title, rental, refinance, or borrower no longer resides in the property, or violates the terms of the mortgage or mortgage note.
• ROC funds may not be subordinated.
• The loan shall be forgiven if all requirements within the forgiveness provision are met.

Rebuilding Our Communities (ROC) Qualified Census Tracts

New Castle	Kent	Sussex	Wilmington
103	408	502	3
139.01	414	518.02	5
141	430		6.01
147.03			6.02
148.08			7
149.03			8
149.05			9
150			15
152			16
154			17
155			21
156			22
158			23
159			26
160			27
163.02
Census 2000

To determine if a property is in one of the eligible census tracts, please access the website below and enter the property address. http://www.ffiec.gov/Geocode/default.aspx

Definitions:
Foreclosed: A home or residential property has been foreclosed upon if any of the following conditions apply:
(a) The property's current delinquency status is at least 60 days delinquent under the Mortgage Bankers of America delinquency calculation and the owner has been notified; (b) the property owner is 90 days or more delinquent on tax payments; (c) under state, local, or tribal law, foreclosure proceedings have been initiated or completed; or (d) foreclosure proceedings have been completed and title has been transferred to an intermediary aggregator or servicer that is not an NSP grantee, contractor, sub recipient, developer, or end user.

Abandoned: A home or residential property is abandoned if either (a) mortgage, tribal leasehold, or tax payments are at least 90 days delinquent, or (b) a code enforcement inspection has determined that the property is not habitable and the owner has taken no corrective actions within 90 days of notification of the deficiencies, or (c) the property is subject to a court-ordered receivership or nuisance abatement related to abandonment pursuant to state or local law or otherwise meets a state definition of an abandoned home or residential property.

DSHA Contact Person
If you have questions about this program, please contact DSHA at 302.574.3730.