Second Mortgage Assistance Loan (SMAL)


Need Down Payment Assistance?
If saving enough for a down payment and closing costs have kept you from buying a home of your own, DSHA's Second Mortgage Assistance Loan (SMAL) may be able to help. All applicants who are eligible for any of DSHA's Homeownership Loans can access up to $8,000 that can be used to cover down payment and closing cost expenses associated with buying a home.

  • DSHA will provide up to $8,000 at 3% simple interest and payments are deferred for 30* years.
  • You can use 100% of the SMAL loan to pay for the down payment, normal and customary closing costs, or reimburse yourself for other expenses incurred prior to closing, such as appraisal, application fees or earnest money down payment provided when you signed your sales contract.

  • * 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.

Do I Qualify?
To qualify for the Second Mortgage Assistance Loan, you must meet all requirements for a DSHA Homeownership Loan


Borrower Qualifications
Maximum household income for eligibility are as follows:

County

Area

1 or 2 Person Households

3 or More Person Households

New Castle

 

$83,200

$95,680

 

Targeted

$99,840

$116,480

Kent & Sussex

 

$74,900

$86,135

 

Targeted

$89,880

$104,860



Property Qualifications
Property's purchase price limits are as follows

County

Type of Home

1 Unit

2 Unit

3 Unit

4 Unit

Kent

$248,098

$317,655

$383,962

$477,135

New Castle

$349,411

$447,283

$540,690

$671,938

Sussex

$291,176

$372,752

$450,552

$559,933


Additional Requirements:

  • Complete a Homebuyer Education course offered by a HUD-approved housing counseling agency.

HUD-Approved Housing Counseling Agency

County

Online
Home Buyer
Education

New Castle

Kent

Sussex

Guidewell Financial Solutions

866.731.8486

866.731.8486

866.731.8486

CLARIFI Inc.

800.989.2227

 

 

 

Delaware Community Reinvestment Action Council

302.298.3249
877.825.0750

877.825.075

877.825.075

 

First State Community Action Agency

302.498.0454

302.674.1355

302.856.7761

Hockessin Community Center

302.239.2363

 

 

Housing Opportunities of Northern Delaware, Inc.

302.429.0794

 

 

 

Interfaith Community Housing

302.652.3991

302.741.0142

 

NCALL Research

302.283.7505

302.678.9400

302.855.1370

Neighborhood House, Inc.

302.658.5404

302.378.7217

 

 

Telamon Corporation

302.404.0529

302.404.0529

302.404.0529

 

YWCA Centers for Homeownership Education

302.224.4060

 

 

 



How do I apply?
Contact a participating DSHA Mortgage Lender.


Questions?
Your lender can help you choose the down payment option that is right for you. You can also check out our Home Buyer's Information Guidebook for more information.


Contact DSHA
Do you have questions about this program? Please contact DSHA toll-free at (888) 363-8808 or via email at ContactDSHA@DeStateHousing.com.