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Single Family Mortgage Revenue Bond Program (SFMRB)
Commonly referred to as the First-Time Home Buyers Program, this statewide program provides first mortgage financing at below-market interest rates to low- and moderate-income Delaware homebuyers who have not owned a home in the past three years.
How To Apply
- Contact a participating mortgage lender and tell them you want to participate in this program
- Make sure you (the borrower) meet all borrower requirements.
- Ensure the property you want to purchase meets all property requirements.
- Understand the loan terms, contract requirements, and related details.
Targeted Areas
Throughout this page the terms "targeted areas" and "non-targeted areas" are used. Different qualification requirements apply if a targeted or non-targeted area is selected by a borrower. You can see if the property you want to purchase is in a targeted area by clicking on a Census Tract number below.
- Borrowers purchasing in targeted areas do not have to meet first-time homebuyer status requirement.
- Targeted areas include the following Census Tracts:
- New Castle County: 1, 7, 17, 20, 21 and 22. Or, see all tracts.
- Kent County: 411 Or, see the CT 411 area.
- Sussex County: none at this time
- Prior-issue targeted funds are still available.
Borrower Qualifications
To qualify, a borrower's current gross family income cannot exceed:
| County | Area | 1 or 2 Person Households | 3 or More Person Households |
| New Castle | Non-targeted | $72,100 | $82,915 |
| Targeted | $86,520 | $100,940 | |
| Kent & Sussex | Non-targeted | $67,500 | $77,625 |
| Targeted | $81,000 | $94,500 |
Notes
- A first-time homebuyer is defined as a borrower who has not owned a principal residence in the past three years. (The only exception to this rule is a borrower purchasing a home in a targeted area.)
- A mobile home on rented land or a temporary foundation does not count as homeownership.
- Borrowers must provide copies of their federal tax returns for the past three years.
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 | $346,601 | $390,382 | $474,296 | $547,265 |
| Targeted | $423,623 | $477,134 | $579,696 | $668,880 | |
| Kent | Non-targeted | $315,355 | $355,190 | $431,538 | $497,930 |
| Targeted | $385,434 | $434,121 | $527,436 | $608,581 | |
| Sussex | Non-targeted | $292,500 | $329,447 | $400,263 | $461,842 |
| Targeted | N/A | N/A | N/A | N/A | |
Notes
- Property must be acceptable to the mortgage lender, mortgage insurer, and the Delaware State Housing Authority (DSHA).
- Purchase price limit includes all consideration passed from buyer to seller, including lot (if acquired less than two years before settlement), improvements such as well and septic, and the cost of the house.
- Property must be completed and legal to occupy.
- A mobile home may be financed if it is deemed real estate, secured to a permanent foundation, and meets the standards of the mortgage lender and mortgage insurer.
- Condominiums and owner-occupied 2-to-4 unit properties may be financed under the program, subject to mortgage insurer's guidelines.
- Conventional loans with loan-to-values up to 100% are acceptable.
- Lenders are advised to visit the Program Underwriting Manual for guidelines and more information.
Loan Terms
- Interest rate is fixed for 6.09% for thirty years and 6.24% for forty years.
- "Assisted Loan" interest rate is fixed for 6.54% for thirty years and 6.69% for forty years.
- FHA, VA and RHS loans may be made under the mortgage program following FHA, VA and RHS underwriting guidelines.
- Program loans are assumable, provided the assumptor is a first-time homebuyer, earning less than the income limit, with credit acceptable to DSHA, the lender, and the mortgage insurer. The home's sales price must not exceed the then-current purchase price limit for existing homes.
Contract Requirements
- Contract must list and value any personal property being conveyed from the seller to the buyer.
- There are no restrictions regarding the date of any sales contract.
Related Details
Delaware banks and other financial institutions may apply to DSHA to become approved lenders to originate below-market interest rate first mortgages. Banks and financial institutions can also purchase the mortgage revenue bonds in order to make the proceeds available at below-market rates to low- and moderate-income first-time homebuyers. "Assisted Loan" mortgage money is available throughout the state. The "assistance" comes in the form of a grant equaling 3% of the mortgage amount which is available to pay closing costs.
Participating Mortgage Lenders
Once you know you have met all requirements for this program, contact the lender of your choice.
| Lender | County | ||
| New Castle | Kent | Sussex | |
| Bank of America | 302.432.0033 | ||
| C & F Mortgage | 302.999.0130 | 302.629.8370. | |
| Chase Home Mortgage | 302.453.4455 | 302.678.9696 | 302.226.8182 |
| Chesapeake Mortgage Funding | 302.628.7663 | ||
| Capital Mortgage Finance | 302.226.5991 | 302.226.5991 | |
| Community Residential Mortgage | 302.698.4130 | ||
| Countrywide Home Loans | 302.479.8700 302.731.3700 302.498.7300 |
302.674.5379 302.644.3060 302.226.4300 |
302.674.5379 302.644.3060 302.226.4300 |
| Delaware National Bank | 888.291.2400 | 888.291.2400 | 888.291.2400 |
| First Horizon Home Loans | 302.456.0776 | 302.734.5770 | 800.238.6662 |
| Flagstar Bank | 302.655.3265 | ||
| 1st Mariner Mortgage | 302.657.0181 | 302.657.0181 | 302.657.0181 |
| Gilpin Financial Services, Inc. | 302.656.5400 | 302.656.5400 | 800.656.5400 |
| Gateway Funding | 302.654.8848 | 302.654.8848 | 302.654.8848 |
| GMAC Mortgage Corp. | 302.428.3030 | 877.851.4622 | 302.226.2448 |
| Indymac Bank | 302.324.5250 | ||
| Mortgage America. | 302.239.0600 | 302.239.0600 | 302.239.0600 |
| National City Mortgage Corp. | 888.840.7130 | 888.840.7130 | 888.840.7130 |
| PNC Mortgage | 302.234.9204 302.286.0270 |
302.734.9316 302.736.1701 |
302.644.1711 302.644.0183 |
| Prosperity Mortgage | 302.479.0540 | 800.798.8679 | 800.798.8679 |
| Sovereign Bank | 302.326.5304 | ||
| SunTrust Mortgage | 302.453.2350 | 877.915.9159 | 877.915.9159 |
| Superior Mortgage Corp | 302.593.1958 | ||
| Trident Mortgage | 800.334.6170 | 800.334.6170 | 800.334.6170 |
| Vision Mortgage Capital | 302.355.1828 | ||
| Wachovia Mortgage | 877.371.2715 | 302.730.5482 | 302.730.5482 |
| Weichert Financial Services | 302.832.9200 302.478.3800 302.992.9500 |
||
| Wells Fargo | 302.661.2500 302.239.6300 302.731.1400 |
302.672.1200 | 302.227.5700 |
| West Star Mortgage | 302.725.0723 | ||
| Wilmington Trust | 866.826.1929 | 866.826.1929 | 866.826.1929 |
| Wilmington Mortgage | 302.633.1660 | 302.633.1660 | 302.633.1660 |
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
