Dover, Del. December 5, 2024 – The Delaware State Housing Authority (DSHA) is proud to celebrate the success of its Home Sweet Home for the Holiday program and allocation of $75 million to support 30-year fixed-rate mortgages with competitive interest rates.

Home Sweet Home for the Holidays offered $10,000 for down payment and closing costs assistance for homebuyers purchasing a home with a maximum sales price of $285,000. The temporary program assisted close to 40 Delaware families buy homes just in time for the holiday season.

The funding was provided in the form of a zero-interest forgivable second loan. Each year the homeowner(s) resides in the subject property as their primary residence, the loan balance will decrease by 10% up to year 10. The loan will be forgiven after 10 years with the verification the homeowner(s) has resided in the subject property as their primary residence.

“We know from our Housing Needs Assessment that the upfront costs for a down payment and closing on a home are a major barrier to achieving homeownership,” said Cynthia Karnai, Director of DSHA. “Recognizing that, our team continues to develop impactful programs to help transform these families’ dreams of homeownership into reality.”

DSHA’s 2023 Housing Needs Assessment found that government-backed mortgages are essential for many non-White households to attain homeownership: 58% of Black households and 41% of Hispanic households utilized government-backed mortgages.

While the Home Sweet Home for the Holidays program is temporary, DSHA provides alternative down payment and closing cost assistance programs, as well as a 30-year fixed rate mortgage, to first-time and repeat homebuyers year round.

These programs are funded by a $75 million “single-family” bond deal. As the state’s housing finance agency, DSHA can issue bonds and notes. The bond funding makes it possible to offer competitive mortgage interest rates—in some cases as low as 5.25%.

The agency’s previous bond deal, which closed in April 2024, assisted approximately 480 families. DSHA plans to create more opportunities for homeownership via these bond deals in 2025.

“Meridian Bank’s partnership with DSHA and the continued availability of the Welcome Home Program at below market rates provided countless homebuyers an opportunity to purchase their first home in 2024 despite rising housing costs and increased interest rates.  In many cases, buyers would not have been able to afford a home if not for the program.  We appreciate DSHA’s commitment to providing resources that enhance home affordability, particularly among low-and moderate-income homebuyers who may have thought homeownership was out of reach in the current market,” said Joe Boffa, Branch Manager of Meridian Bank.

Buyers participating in the programs must meet eligibility requirements for DSHA’s homeownership loan programs, including income limits and credit score (620 minimum). Income limits for these programs can be found on DSHA’s homeownership website:https://kissyourlandlordgoodbye.com/.  

DSHA also offers financial counseling through HUD-approved housing counselors to help potential homebuyers improve their credit scores and reach homeownership. A list of housing counseling agencies can be found on the website: https://kissyourlandlordgoodbye.com/housing-counselors/. The programs are available statewide, and DSHA will continue working with participating lenders to serve homeowners. See the complete lender list here:https://kissyourlandlordgoodbye.com/lenders/.