Direct Homebuyer Assistance

What is Direct Homebuyer Assistance?

Direct Homebuyer Assistance is a forgivable loan for homebuyers in Sussex County, Delaware.

• The Sussex County Housing Trust Fund (SCHTF) Direct Homebuyer Assistance program, administered by the Sussex County Community Development & Housing Department, provides up to $20,000 of closing/settlement-cost assistance to qualifying households purchasing a primary residence in Sussex County. The program is funded by Sussex County Council (a local, non-federal funding source) and structured as a 10-year soft-second 0%-interest prorated mortgage that is satisfied after 10 years of continued owner-occupancy. Round 4 funding opened July 1, 2025 and is awarded first-come, first-served until exhausted.
• Direct buyer settlement-cost assistance of up to $20,000 per qualifying household for closing/settlement costs only on the purchase of a Sussex County primary residence. Structured as a soft-second 0%-interest prorated mortgage that is forgiven (considered satisfied) after 10 years of owner-occupancy with no triggering events. Available to first-time and repeat buyers with household income at or below 120% of Sussex County AMI. Round 4 funding became available July 1, 2025 and is awarded on a first-come, first-served basis until exhausted. (Note: the Sussex County Housing Trust Fund summary documents historically reference 'up to $30,000' in some marketing materials.
• the official 2025/2026 program manual table caps Direct Buyer Assistance at $20,000 per household.).
• Funding comes from Local Government (Sussex County Housing Trust Fund - Sussex County Council appropriation).

Do you have to pay it back?

Direct Homebuyer Assistance is forgiven after 10 years, so a buyer who stays that long does not repay it.

• Repayment is triggered by Soft-second 0% prorated mortgage repayable only at sale or transfer of the property and SCHTF mortgage is considered satisfied after 10 years of continuous owner-occupancy with no triggering events. Will not be subordinated unless adequate equity covers the SCHTF assistance amount.
• The assistance is recorded in 2 position.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

Direct Homebuyer Assistance is open to buyers who will live in the home as their primary residence.

What are the income limits?

Direct Homebuyer Assistance limits household income to 120% of the area median income, which varies by county and household size.

• Household income must be less than 120% of HUD AMI for Sussex County, DE. 2025 HUD income limits effective 4/1/25: <$81,960 (1-person), <$93,600 (2), <$105,360 (3), <$117,000 (4), <$126,360 (5), <$135,720 (6), <$145,080 (7), <$154,440 (8).
• The limit applies to total household income, not only the borrower&rsquo;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?

Direct Homebuyer Assistance caps the purchase price as follows: No published Sussex County maximum purchase price; subject to first-mortgage product limits and SCHTF affordability/feasibility review.

• Eligible property types include Single-family detached, Townhome, Duplex, Manufactured home on permanent foundation, Modular, and New construction.
• New construction is eligible.
• Manufactured homes are eligible.

Where does it apply?

Direct Homebuyer Assistance serves buyers purchasing in Sussex County, Delaware.

How do you apply?

Applications for Direct Homebuyer Assistance go through the administering agency, 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 HUD-approved housing counseling agency: NeighborGood Partners (formerly NCALL), First State Community Action Agency, Interfaith Community Housing of Delaware, Neighborhood House. Minimum 8 hours of pre-purchase homeownership counseling and completion certificate required..

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved through HUD-approved housing counselor submits completed application and income verification to Sussex County CD&H; awarded first-come, first-served until annual funding round exhausted., 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.