As home prices rise and affordable options dwindle, the dream of homeownership feels increasingly out of reach for many in rural Delaware. For 50 years, NeighborGood Partners has been working to change that in the Delmarva Peninsula, delivering solutions and proven programs that expand access to homeownership.
The nonprofit was founded in 1975 in Washington, D.C., to advocate for better living and working conditions for farmworkers. Back then, it was known as the National Council on Agricultural Life and Labor Research Fund.
As the need for affordable housing in rural mid-Atlantic communities grew, the organization shifted its focus, moved to Delaware in 1976, and teamed up with local faith groups to build homes. Today, they’re still rooted in community and working across the peninsula to create places where people can thrive.
Navigating the Homeownership Journey
NeighborGood Partners (NGP) supports families as they navigate the complicated process of buying a home in rural Delaware. They work with households in Sussex, Kent, and New Castle counties to access the USDA Rural Development Section 502 homeownership loan program.
The USDA 502 Loan Program provides an opportunity for rural families and individuals who would otherwise be priced out of the housing market. Designed specifically for low- and very low-income households in rural areas, this program offers affordable interest rates as low as 1% and extended repayment terms of up to 38 years. These terms help lower monthly mortgage payments and open the door to homeownership for those who need it most.
Investing in Capacity to Serve More Families
Over the years, NGP has helped over 50,000 families, with nearly 10,500 becoming homeowners through its counseling program. With Enterprise’s financial assistance, it counseled over 100 low- and very low-income families seeking to apply for USDA 502 loans, resulting in 25 new homeowners.
Yet, a good number of potential homeowners remain on a waiting list for funding from the loan program. NGP staff say the demand for the USDA 502 Loan Program in Delaware is higher than they have seen, with increased home prices and interest rates.
The process for qualifying and applying for a home loan is not easy. Each loan packet requires hours of collecting documents, reviewing financials, verifying information, and coordinating with intermediaries and USDA staff.
By leveraging a grant awarded through Enterprise, NGP was able to secure and train a dedicated loan package specialist who assists families through this process. Enterprise’s support helped them leverage $8.4 million in USDA rural development mortgage loan financing, generating an estimated $58.8 million in economic activity.
“At NeighborGood Partners, our counselors work with households to get them ready to apply for a mortgage by helping them to improve their credit score, reduce debt, increase savings, and understand the home purchasing process,” NGP Executive Director Karen Speakman said. “Entreprise's assistance through the HUD Section 4 funding supported the work of a Certified 502 Loan Packager who worked with the families to assemble an eligible loan application. Without this assistance, fewer low-income families would have been able to submit a loan application and buy a house.”
Looking ahead, rural homeownership faces significant challenges, including rising construction and housing costs, limited affordable financing options, and a shortage of quality housing. But solutions do exist, including increased funding for both federal and state affordable housing programs, support for expanded access to financial education and credit-building resources, and strong partnerships between public and private sectors to develop more housing opportunities in rural communities.