 |
| Return to Homebuyers Page |
American Dream Downpayment Initiative (ADDI) - Kent/Sussex Counties
At this time the ADDI program is not funded. Please continue to check this page for availability.
The Federal ADDI program offers the greater of $10,000 or 6 percent of the sales contract price in downpayment assistance to qualified first-time homebuyers in Kent or Sussex Counties. The assistance converts from a loan to a grant after 5 years of purchase if the purchaser does not sell or refinance.
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 mortage lender and tell them you want to participate in this program.
Availability of Funds
Funds are currently available.
Borrower Qualifications
To qualify, a borrower's current household income cannot exceed:
| County | Household Income Maximum Limit | |||||||
| 1 Person | 2 Person | 3 Person | 4 Person | 5 Person | 6 Person | 7 Person | 8 Person | |
| New Castle | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Kent | $31,750 | $36,300 | $40,800 | $45,350 | $49,000 | $52,600 | $56,250 | $59,900 |
| Sussex | $30,850 | $35,300 | $39,700 | $44,100 | $47,650 | $51,150 | $54,700 | $58,200 |
Notes
- The ADDI acquired property must remain the principal residence of the assisted family throughout Recapture Period of five (5) years from date of purchase. If the ADDI assisted property is sold during the first five (5) years then the ADDI loan will be subject to recapture.
- Conditions for ADDI assistance are:
- Borrower must participate in a housing counseling program approved by Delaware State Housing Authority (DSHA).
- Borrower must be the owner-occupant of the home and a first time homebuyer.
Property Qualifications
To qualify, a property's purchase price cannot exceed:
| County | Purchase Price |
| New Castle | N/A |
| Kent | $223,787 |
| Sussex | $247,700 |
Notes
- Maximum limits are per Section 203(b), last revised January 1, 2006.
- All properties are subject to DSHA approval and must comply with first mortgagee's underwriting criteria. DSHA's inspector will provide the seller, buyer and realtor with a copy of the completed inspection indicating the property has either passed the inspection or detailing the repairs that need to be made. In the event there are repairs needed, a re-inspection will be scheduled to verify the repairs have been completed. If, upon re-inspection, the repairs are not completed, DSHA will assess an inspection fee of $100.00 per subsequent inspection(s). This charge will be assessed to the seller and payment will be required before scheduling the subsequent inspection(s).
Loan Terms
- Loans from ADDI funds for downpayment assistance may not exceed the greater of 6% of the purchase price of the single-family home or $10,000. Additionally, ADDI loans may not exceed the actual amount determined to be needed for the borrower to purchase the home using the underwriting criteria for and maximizing the first mortgage loan.
- Second mortgage loans shall be at 0% interest and shall not require payments except in the event of sale of the property or other violation of the Mortgage or Mortgage Note. The loans shall be forgiven at the end of the period of affordability provided all HOME Program requirements have been met.
DSHA Contact Person
Do you have questions about this program? Would you like to suggest an improvement to this Web page? Please contact Lisa McCloskey, Housing Mortgage Loan Officer II, at 302.739.4263.
Other Contacts
Other contacts are NCALL Research (302.678.5400) and First State Community Action Agency (302.856.7761).
