State announces new lending programs for homebuyers
The Delaware State Housing Authority launched two new programs Tuesday to help people who haven’t saved enough or can’t afford repairs for a potential new home.
Under one, the Housing Authority will make the required mortgage insurance payment for homebuyers who can't put a 20 percent down payment on a new house. The state-backed insurance payments have higher interest rates, but would still create savings around $70 a month, according to officials.
DSHA Director Anas Ben Addi says low interest rates are helping fuel the program -- at least for now.
“If I have to predict, and I’m not a predicting man, it will probably not until next year when we may see changes in the market that could impact the production and that will depend really on the shift in interest rates,” Ben Addi said.
Another initiative folds mortgage and home repair costs of up to $35,000 into one loan.
“With this one, they actually see the numbers up front and they get qualified based on the mortgage plus the rehab. And if they qualify and are eligible for that, they go for it, work with a contractor and get it done,” Ben Addi said.
Those repairs could include upgrading appliances, re-carpeting or installing a new roof, among others.
To qualify, borrowers must make less than $97,900 per year, have a maximum loan of $417,000 and have good credit.