Sussex Homebuyer Assistance Program

Summary of Regulations for NSP 2

Sussex County, Delaware has been awarded Neighborhood Stabilization Program 2 (NSP 2) funds as a sub-grantee of the Delaware State Housing Authority (DSHA). This program was authorized under the American Recovery & Reinvestment Act of 2009 (ARRA) through the U.S. Department of Housing & Urban Development (HUD). The County's Community Development & Housing Division will be offering mortgage assistance to provide affordable homeownership opportunities to qualifying homebuyers in Sussex County.

Program Parameters: Terms & Conditions

  • Mortgage assistance may be used for down-payment, closing/settlement costs, home inspections, housing counseling, and rehabilitation expenditures
  • The homebuyer must maintain the home as their primary residence
    • The home may only be rented to another party in certain limited and extraordinary circumstances approved by the Department. A violation of primary occupancy will result in immediate repayment of mortgage assistance funds
  • The household must meet income requirements at time of application:
Eligible Household Incomes & Corresponding Mortgage Assistance
*Effective 12/28/13
Mortgage
Assistance
Area Median
Income
1
Person
2
Person
3
Person
4
Person
5
Person
6
Person
$50,000 50% of AMI <$21,850 <$25,000 <$28,100 <$31,200 <$33,700 <$36,200
$40,000 80% of AMI

$21,851-

$34,950

$25,001-

$39,950

$28,101-

$44,950

$31,201-

$49,900

$33,701-

$53,900

$36,201-

$57,900

$30,000 120% of AMI

$34,951-

$52,440

$39,951-

$60,000

$44,951-

$67,440

$49,901-

$74,880

$53,901-

$80,880

$57,901-

$86,880

 

Applicant Obligations

  • The home must be a foreclosed house
  • The home must be located within the following targeted census tracts: 509 (Milton/Lewes area), 510.01 (Lewes area), 511 (Rehoboth/Dewey area), 507.02 (Millsboro area) & 501.02 (Milford/Lincoln area)
  • Homebuyer must complete at least 8 hours of pre-purchase homeownership counseling at a HUD-approved agency
  • Homebuyer must be pre-qualified for a loan
  • Prior to submitting a formal offer on an NSP-qualified home, the homebuyer must receive a written letter of approval from the Department to include with offer submission
    • The Department will need to have inspected the home and received the NSP application from the HUD-approved counseling agency verifying income prior to authorizing approval.

Affordability Controls

  • Mortgage assistance will be secured as a soft second 0% interest prorated mortgage repayable only at the time of sale or transfer of property, and will not be subordinated unless there is adequate equity to cover the NSP investment.
  • If no payment triggering events take place, the NSP mortgage shall be considered satisfied after a period of thirty (30) years.

For a current listing of NSP-eligible homes please contact Brandy Nauman at (302) 855-7779.