Down Payment Settlement (DPS) Program

Down Payment Settlement (DPS) Program is a deferred second loan for homebuyers in New Castle County, Delaware. The New Castle County Down Payment Settlement (DPS) Program enables low- and moderate-income first-time homebuyers to purchase homes throughout New Castle County (excluding the City of Wilmington) by providing up to $10,000 in down payment and settlement/closing-cost assistance. Funded primarily through HUD HOME and/or CDBG, the assistance is structured as a 15-year, 0%-interest second mortgage with a 24-month payment deferral period followed by required monthly amortization. Down payment and settlement/closing-cost assistance up to $10,000, structured as a 0% interest 15-year second mortgage. The first 24 months are deferred (no payments). monthly principal payments begin in month 25. Maximum $10,000 loan amortizes to roughly $64.10 per month over the remaining term. Property purchase price capped at $460,000. Available throughout New Castle County (excluding the City of Wilmington, which administers its own First Start program). Funding comes from Federal HOME, Federal CDBG, and Local Government.

Down Payment Settlement (DPS) Program is deferred, so no payments are due until the home is sold, refinanced, or the first mortgage is paid off. Repayment is triggered by First 24 months deferred (no payment). Monthly principal payments begin in month 25 and continue through the 15-year term. Outstanding balance becomes immediately due upon sale, transfer, refinance (cash-out), or loss of owner-occupancy. 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.

Down Payment Settlement (DPS) Program is open to first-time homebuyers and homebuyers who will live in the home as their primary residence. "First-time" has exceptions here: First-time homebuyer = no ownership in last 3 years; standard HUD displaced-homemaker / single-parent exceptions apply. On credit, the program states: No published NCC-specific minimum; first-mortgage product credit-score minimums apply. A homebuyer education course is required, through HUD-approved housing counseling agency (e.g., NeighborGood Partners/NCALL, Interfaith Community Housing of Delaware); pre-purchase homeownership counseling required. Residency requirement: Property must be located within New Castle County, DE (outside the City of Wilmington), and serve as borrower's primary residence. Citizenship or immigration status: U.S. citizen or eligible non-citizen per first-mortgage product rules. First-time homebuyer (no homeownership in prior 3 years). Household income may not exceed 80% of HUD area median income for New Castle County (range approximately $64,250 1-person to $121,150 8-person at 80% AMI under current HUD limits). Property must be located in New Castle County, DE, outside the City of Wilmington (which has its own First Start program), and serve as buyer's primary residence. Maximum purchase price $460,000. Borrower must contribute minimum $500 of own funds. Buyer must complete HUD-approved pre-purchase homebuyer counseling. Loan is 0% interest 15-year second mortgage with 24-month payment deferral; required monthly payments begin in month 25.

Down Payment Settlement (DPS) Program limits household income to 80% of the area median income, which varies by county and household size. Total household income may not exceed 80% of HUD area median income for the New Castle County, DE HUD income area, adjusted for household size. Approximate range: $64,250 (1-person) to $121,150 (8-person) at 80% AMI under current HUD limits. 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.

Down Payment Settlement (DPS) Program caps the purchase price at $460,000. Eligible property types include Single-family detached, Townhome, and Condominium. New construction is eligible. Manufactured homes are not eligible.

Down Payment Settlement (DPS) Program serves homebuyers purchasing in New Castle County, Delaware.

Applications for Down Payment Settlement (DPS) Program go through the administering agency, which publishes the current terms and the application steps on its own site. Funds are reserved through Application processed by NCC Department of Community Services in coordination with first-mortgage lender; funds awarded first-come, first-served subject to availability. Hey Prescott is not a lender and does not accept applications; this page describes the program so a homebuyer can take it to a lender or housing counselor.