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Second Mortgage Assistance Loan (SMAL)
This loan provides downpayment and closing cost assistance up to $10,000.
How To Apply
- Make sure you (the borrower) meet all borrower requirements.
- Ensure the property you want to purchase meets all property requirements.
- Understand the loan terms and related details.
- Contact a participating mortgage lender and say you want to participate in this program.
- Please view Home Buyers' Information Guidebook
Borrower Qualifications
Maximum household income for eligibility are as follows:
| County |
Area |
1 or 2 Person Households |
3 or More Person Households |
| New Castle |
Non-targeted |
$81,500 |
$93,725 |
| |
Targeted |
$97,800 |
$114,100 |
| Kent & Sussex |
Non-targeted |
$73,300 |
$84,295 |
| |
Targeted |
$87,680 |
$102,620 |
Notes
- Borrowers utilizing the SMAL program must qualify for and utilize a DSHA
financed mortgage loan for their first mortgage product. Please contact a Single Family
Mortgage Revenue Bond participating lender to get started today.
- Borrowers must participate in a U.S. Department of Housing and Urban Development (HUD)-approved
housing counseling program/home ownership education.
Property Qualifications
To qualify, a property's purchase price cannot exceed:
| County |
Type of Loan |
Type of Home |
| 1 Unit |
2 Units |
3 Units |
4 Units |
| New Castle |
Non-targeted |
$382,784 |
$490,010 |
$592,314 |
$736,131 |
| |
Targeted |
$467,847 |
$598,901 |
$723,939 |
$899,716 |
| Kent |
Non-targeted |
$342,911 |
$438,972 |
$530,613 |
$659,438 |
| |
Targeted |
$419,114 |
$536,521 |
$648,527 |
$805,979 |
| Sussex |
Non-targeted |
$341,772 |
$437,514 |
$528,881 |
$657,250 |
| |
Targeted |
N/A |
N/A |
N/A |
N/A |
Notes
- All properties must be inspected by an ASHI- or NACHI-Delaware chapter or NAHI-CRI Home Inspector.
Loan Terms
- Loan amounts, up to $10,000 are available to be used toward downpayment and settlement costs.
- The loan is secured by a second mortgage lien against the property.
- There is no interest charged on SMAL.
- Principal is deferred for 30 years. Payments are required beginning in the 361st month. The balance becomes due upon refinancing, sale, transfer of title or when the property is no longer the primary residence, whichever occurs first.
DSHA Contact Person
Do you have questions about this program? Would you like to suggest an improvement
to this Web page?
Please contact DSHA at 302.577.5001
