Wednesday, March 11, 2015
by Audrey and Frank Serio, CRS
DSHA Announces Big Changes to Homeownership Programs
During a Lender’s Meeting today, DSHA announced the following changes to Homeownership Programs:
Effective immediately, Homeownership program income limits will no longer be based on county and family size. The new statewide income limit is as follows:
New Homeownership Program Loan Income Limit Effective March 10, 2015
|
County
|
Income Limit
|
|
Kent
New Castle
Sussex
|
$97,900
|
DSHA has also announced the elimination of Homeownership Program Purchase Price Limits and has replaced that limit with a statewide maximum loan amount.
New Homeownership Maximum Loan Amount Limit Effective March 10, 2015
|
County
|
Maximum Loan Amount
|
|
Kent
New Castle
Sussex
|
$417,000
|
End of Advantage 3 and the launch of Advantage 4 grant program
Also announced during the meeting was the Advantage 3 grant program would be replaced by Advantage 4. Advantage 4 will provide a larger grant amount equal to 4% of the 1st mortgage that is used to cover down payment and closing costs. Advantage 3 reservations will be accepted until 5:30 PM on March 13th and Advantage 4 reservations will begin being accepted at 9:00 AM on March 16th.
Changes to Second Mortgage Assistance Program (SMAL)
Also announced were the following changes to SMAL. Effective immediately, SMAL income and purchase price limits will no longer mirror the Homeownership Program limits, but will be tied to the limits established for the Delaware First-Time Homebuyer Tax Credit program. This means in some cases, borrowers who are eligible for a first mortgage through DSHA may exceed income or loan amount limits for SMAL.
Advantage 4 eligibility criteria will match those of the Homeownership Program, so borrowers who do not qualify for SMAL may want to consider using Advantage 4 instead.
Also announced, while DSHA strongly encourages a home inspection it was announced this was being eliminated as a requirement for SMAL applicants effective immediately.
Faster Purchase at US Bank with Doc Velocity
During the meeting, US Bank provided information on the Doc Velocity system that they are rolling out to lenders. Doc Velocity is a closed loan delivery system that will provide greater efficiency in reviewing closed loans for purchase and clearing any deficiencies. The result of the initial roll out is that loans are received and purchased in half the time as the paper process.
Audrey & Frank Serio, CRS
REMAX By The Sea
Bethany Beach DE 19930
Direct: 302.537.3171
Frank@TheSerios.com
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