Real Estate Blog

Credit to: Coastal Point

The Delaware State Housing Authority (DSHA) and Discover Bank announced a significant milestone in their long-standing partnership to expand homeownership opportunities for low-to-moderate-income residents across the state. Over the past decade, the collaborative lending program has provided more than $500 million in mortgage financing to 2,780 first-time homebuyers with household incomes at or below 80 percent of the area median income.

Complementing the more than $500 million in mortgages originated, the program generated more than $5 million in additional subsidies. The subsidies enabled DSHA to offer mortgages with consistently below-market interest rates, furthering affordable homeownership prospects for Delaware families.

“Surpassing half a billion in financing takes work. I’m grateful for Discover Bank and the DSHA team’s commitment to serving Delawareans,” said Cynthia Karnai, director of DSHA. “This milestone is a testament to how public-private partnerships can positively impact the surrounding community, and I look forward to making the next ten years just as successful.”

“We strongly believe that one of the most influential ways for a bank to serve its community is to help make homeownership accessible and achievable for all,” said Matthew Parks, vice president at Discover Bank. “Homeownership has long been considered the primary means to build wealth for low and moderate-income families, and our collaboration with DSHA allows us to provide funding in a meaningful way by leveraging the agency’s mortgage and down payment packages, resulting in the dream of homeownership becoming a reality for many Delawareans.”

Throughout the month of June, DSHA joined Gov. John Carney, elected officials and partners in each county throughout Delaware to celebrate Home Ownership Month. DSHA announced the launch of its newest mortgage product to expand opportunities for home ownership and investing in our communities.

We are extremely proud to launch the Diamond in the Rough program, which embodies our mission to make homeownership more attainable for Delaware residents,” said Cynthia Karnai, director of DSHA.

Diamond in the Rough combines a FHA mortgage to purchase and repair a home in one mortgage. DSHA buyers can purchase and update a home with up to $35,000 in renovation costs. Also, DSHA will support the purchase with 5 percent in down payment and closing costs assistance.

“We provide a comprehensive product that helps homebuyers turn houses that need a little love into their dream homes,” Karnai added.

“Owning a home is a powerful way to build wealth,” said Wes Stefanick, CEO of the Delaware Association of Realtors. “These programs empower many in our community to achieve this goal. Data supports this: a Federal Reserve study shows homeowners’ median net worth soared from $295,500 in 2019 to $396,200 in 2022, while renters’ median net worth only rose slightly, from $7,300 to $10,400.”

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