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|
|$50,000||50% of AMI||$20,850||$23,800||$26,800||$29,750||$32,150||$34,550|
|$40,000||80% of AMI||$33,350||$38,100||$42,850||$47,600||$51,450||$55,250|
|$30,000||120% of AMI||$50,040||$57,150||$64,320||$71,400||$77,160||$82,920|
- 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.
- 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.