Buying a Home

Buying a home is a big step! We can help.

Homeownership through Diamond State is a little different from traditional homeownership and we’ll work with you to ensure you understand not only the steps of buying a home, but the ins and outs of our program.

We’re with you every step of the way!

To qualify for buying a home through Diamond State, there are a few things to know.

Steps to Homeownership with Diamond State

1. Contact Diamond State Community Land Trust for Information Session.
   This is a free one-hour session where staff provide the details of how the Land Trust operates and how you can become a Land Trust homeowner. Information sessions may be scheduled in group or individual meetings.

2. Fill out a DSCLT Housing Pre-Application.
   Filling out the application does not obligate you to work with our program, but it provides more details about your financial situation. This allows us to work with you more effectively in reaching your goal of owning a home. Return the application to our office, 363 Saulsbury Rd., Dover, DE  19904.

3. Attend a Homebuyer Education Workshop.
   DSCLT partners with HUD approved homeownership counseling agencies for their First Time Homebuyer Workshops. Learn about the many stages of becoming a homeowner, from determining how much you can afford to the closing process, from people who know. Housing experts including realtors and loan officers, lead these sessions. The Workshop is for anyone thinking about buying a home, not just for DSCLT homebuyers. These three certified homeownership counseling agencies are our primary training partners: 

• NCALL Research
  302-678-9400 • info@ncall.org
• Interfaith Community Housing of Delaware
  302-995-7428
• First State Community Action Agency
  302-856-7761
4. Schedule time with DSCLT staff to review your application and make a plan.
   Everyone's situation is different. This is a chance for us to help you review your mortgage eligibility and make a home buying plan.  Banks want to see that you have a solid financial record for mortgage approval. Do not worry if your credit is not perfect, though, because there are steps you can take to help clean up your credit report. In addition, you will have to save for an earnest money deposit, down payment and closing costs, and other home purchase expenses.
5. Meet with a loan officer to get pre-approved for a mortgage.
   There are specific banks that have created partnerships with DSCLT to provide mortgages to our homebuyers. A list of approved lenders is available from DSCLT staff. Although it may be tempting to meet with other lenders, it might mean that you would have to do this step twice. We are always willing to work with new lenders, but it can take as long as a year for them to approve the program. We want the process to be as smooth as possible for you.
6. Obtain approval from the DSCLT Selection Committee.
   DSCLT staff will provide an overview of your application and financial situation to the Selection Committee at its regular monthly meeting. The DSCLT Selection Committee will review your application and decide to approve it or make recommendations for future approval. Staff will notify you of their decision.
7. Review the DSCLT Land Lease with an Attorney.
   You must meet with an attorney to review the Land Lease. This is to ensure you understand the Land Lease, particularly the resale formula. We can provide you with the names of some attorneys who are willing to work with you at a reduced cost.
8. Sign a Purchase and Sale Agreement.
   In some instances, there may be an opportunity to reserve a home with DSCLT through a "pre-sale". A pre-sale consists of choosing a home, signing a Purchase & Sale Agreement with DSCLT and making a $1,500 deposit to an escrow account with a title company. DSCLT will assist you with the purchase process, including the required paperwork. If there are no current properties available, you will remain on the waiting list.

9. Successfully purchase your own home!

Link to Homebuyer Information and Pre-Application

Link to Homebuyer Manual

Link to Diamond State Ground Lease