Diamond State Community Land Trust Homeownership Program

What is Diamond State Community Land Trust Homeownership Program?

Diamond State Community Land Trust Homeownership Program is a shared-appreciation loan for homebuyers in Dover, Delaware, administered by Diamond State Community Land Trust (a NeighborGood Partners affiliate).

• Diamond State Community Land Trust (DSCLT), the nation's first statewide community land trust (formed 2006, based in Dover), sells permanently-affordable homes to income-qualified buyers at below-market prices. The trust retains ownership of the underlying land and leases it to the homeowner under a long-term, renewable, inheritable ground lease, lowering the purchase price. When the owner sells, the home must be sold to another income-eligible buyer at a price set by a resale formula in the ground lease, which limits price appreciation to keep the home affordable while still allowing the owner to build some equity.
• Below-market home purchase price.
• Permanently affordable homeownership.
• Land cost removed via 99-year ground lease.
• Homebuyer education and lender connection.
• Lifetime stewardship support.
• Equity-building with resale formula.
• Home is inheritable by heirs.
• Funding comes from Community land trust model; public and private investment stewarded by DSCLT (over $3 million in public funds preserved to date).

Do you have to pay it back?

Diamond State Community Land Trust Homeownership Program is a shared-appreciation loan and is repaid under the terms set by Diamond State Community Land Trust (a NeighborGood Partners affiliate).

• Repayment is triggered by Resale: home must be sold to an income-eligible buyer at a price determined by the ground-lease resale formula; owner retains original equity plus a formula-limited share of appreciation.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

Diamond State Community Land Trust Homeownership Program is open to buyers who will live in the home as their primary residence.

What are the income limits?

Diamond State Community Land Trust Homeownership Program sets its income limit as follows: Buyers must be income-qualified based on a percentage of Area Median Income (AMI); the specific AMI limit is set per home/funding source and is not published as a single statewide table on the official site. Confirm the applicable limit with DSCLT for the specific home.

• The limit applies to total household income, not only the borrower’s.
• Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

What kind of home can it be used for?

Diamond State Community Land Trust Homeownership Program caps the purchase price as follows: Purchase price is set below market on a per-home basis by the trust; no fixed maximum is published.

• Eligible property types include Single Family.

Where does it apply?

Diamond State Community Land Trust Homeownership Program serves buyers purchasing in Dover, Delaware.

How do you apply?

Applications for Diamond State Community Land Trust Homeownership Program go through Diamond State Community Land Trust (a NeighborGood Partners affiliate), which publishes the current terms and the application steps on its own site.

1. 1

   Take a homebuyer education course

   Required by the program, through DSCLT connects buyers to qualifying homebuyer education programs (e.g., HUD-approved counseling such as NeighborGood Partners).

2. 2

   Contact Diamond State Community Land Trust (a NeighborGood Partners affiliate) to reserve funds

   Funds are reserved through Apply through Program Manager; homes purchased as they become available (limited inventory), and are subject to availability.

3. 3

   Work with a lender who handles the program

   Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.