Governor Jack Markell today joined Delaware State Housing Authority (DSHA) Director Anas Ben Addi and other federal, state and local officials to celebrate Delaware Home ownership Month and to announce a new program that will allow first time homebuyers to claim a credit on their federal income taxes. The Delaware First-Time Homebuyer Tax Credit entitles first time buyers who purchase a home in Delaware as their primary residence to take a federal income tax credit up to $2,000 each and every year as long as the homebuyer occupies the home and has the mortgage loan. Because the Delaware First Time Homebuyer Tax Credit reduces federal income tax liabilities and increases net earnings, it can be of significant help in making home ownership more affordable.
Governor Jack Markell said, “To ensure Delaware can compete and win on the global stage we need our state to be as attractive and as affordable a place to live as possible. This tax credit will help more families obtain affordable housing, stabilize communities, and boost our state’s economy.”
HUD is committed to shaping a housing market that is stronger and more affordable,” said HUD Regional Administrator Jane C.W. Vincent. “We applaud Governor Jack Markell and the Delaware State Housing Authority for creating the first time homebuyer tax credit. It is an excellent tool to help restore the dream of home ownership and create strong communities across the First State.”
DSHA Director Anas Ben Addi added, “While DSHA has been hard at work to create innovative financial products to help repeat buyers, we still remain committed to first time homebuyers who oftentimes just need a little help to bridge the gap to home ownership. We expect that this tax credit will not only give them the means to realize their dreams, it will also have the added benefit of giving a boost to that segment of the housing market. Strengthening our economy is good for everyone and keeps Delaware moving forward.
To qualify for the programs, applicants must meet area income requirements, and may not have owned a home within the past three years (non-active qualified veterans exempted). Family gross income limits for the program vary by county location and family size. The household income for a family of three or more may not exceed $91,080 in New Castle County or $84,065 in Kent and Sussex Counties. The maximum purchase price for a home in New Castle County is $387,692.The maximum is $347,307 in Kent County, and $346,153 in Sussex County. Homebuyers must apply for the Delaware First-Time Homebuyer Tax Credit through a participating lender. DSHA offers qualified Delawareans reduced mortgage rates through its Home ownership Loan Program as well as closing cost and down-payment assistance. For more information on all of DSHA’s homeownership programs and a list of participating lenders visit: www.destatehousing.com/HomeOwnership/HomeOwnership.php
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