Rebuilding Our Communities (ROC) – The $25,000 forgivable loan for downpayment, closing costs and first mortgage balance reductions.
This loan provides downpayment and closing cost assistance of $25,000 to assist homebuyers with purchasing a vacant or foreclosed home in specific qualified census tracts. ROC provides a forgivable grant to be used for downpayment and closing cost assistance to assist homebuyers with purchasing homes. These homes must have been vacant for 90 days or more prior to the date of the sales contract, or have had foreclosure proceedings initiated or completed. All ROC recipients will receive the full $25,000 with any remaining funds in excess of those needed at closing used to reduce the initial amount of the first mortgage. Any first mortgage amount reduction means that your monthly payments will be lower.
How To Apply
- Contact a participating mortgage lender and say you want to participate in this program.
- Please view Home Buyers’ Information Guidebook
Borrower Qualifications
Maximum household income for eligibility are as follows:
| Income Limits For Households at 120% of Area Median Income (AMI) | ||||||
|---|---|---|---|---|---|---|
| County | 1 Person Household | 2 Person Household | 3 Person Household | 4 Person Household | 5 Person Household | 6 Person Household |
| New Castle | $68,520 | $78,240 | $88,080 | $93,725 | $93,725 | $93,725 |
| Kent | $53,160 | $60,720 | $68,280 | $75,840 | $81,960 | $84,295 |
| Sussex | $52,680 | $60,120 | $67,680 | $75,120 | $81,240 | $84,295 |
Notes
- Borrowers must qualify for and utilized a DSHA first mortgage product.
- Borrowers must participate in a U.S. Department of Housing and Urban Development (HUD)-approved housing counseling program/home ownership education.
Property Qualifications
- The property must be sold for a minimum of 1% below the appraised value.
- Property must be in a qualified ROC census tract.
- Property must be inspected by an ASHI, NAHI-CRI, or NACHI Delaware chapter home inspector.
- Properties built prior to 1978 must have a lead based paint visual assessment.
- In the event the home fails the visual inspection, deteriorated paint surfaces must be stabilized.
- Current rental properties are not eligible to be purchased.
Loan Terms
- ROC is an interest free loan that is forgiven over time, as long as all requirements for forgiveness are met.
- Forgiveness period of 10 years, which is prorated monthly.
- ROC will be secured by a lien against the property.
- Some repayment may be required if the property is sold, refinance, title is transferred, the borrower no longer resides in the property, or violates the terms of the mortgage or mortgage note.
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