First-Time Home Buyer Programs in Delaware

Delaware State Housing Authority (DSHA) Programs:

DSHA offers 30-year fixed-rate mortgages at below-market rates for first-time homebuyers (no primary residence in past 3 years, waived in targeted areas) and down payment assistance through approved lenders. No statewide sales price limits; income limits vary by county and household size (higher in targeted areas). Mandatory homebuyer education required. Verify current rates, limits, and targeted areas at destatehousing.com or contact a DSHA-approved lender.

DSHA First-Time Homebuyer Mortgage Programs:

Eligibility: First-time homebuyers (or repeat in targeted areas); low-to-moderate income.
Offerings: 30-year fixed-rate mortgages (FHA, VA, USDA, or conventional) with competitive rates and low down payment options.
Requirements:

• Income ≤ county-specific limits (e.g., $98,000–$140,000+ depending on area/household size—higher in targeted areas; check DSHA tables).
• Minimum credit score: 620+ (varies by loan type).
• Debt-to-income ratio typically ≤45%.
• Mandatory homebuyer education (free via DSHA-approved counselors).

Down Payment Assistance (DPA):

Benefits: Up to 5% of purchase price (max $10,000–$15,000 depending on loan/program) as a deferred second mortgage (0% interest, no monthly payments; repayable on sale/refinance). Some forgivable options after 5–10 years occupancy.
Eligibility: Must pair with DSHA first mortgage; income-based (low/moderate); minimum buyer contribution often $1,000+.

Delaware Dream Down Payment Initiative:

Description: Up to $15,000 forgivable assistance for down payment/closing costs (forgiven after 5–10 years if occupancy maintained).
Eligibility: First-time buyers; low-to-moderate income; pairs with DSHA mortgage; needs-based.

Local Programs (Examples):

City/county programs offer additional assistance—often for low/moderate-income residents with education requirements. Funding limited; verify local housing authorities.

Wilmington

Wilmington Homeownership Programs: Down payment/closing cost assistance for eligible buyers in Wilmington (income-based; first-time focus). Requires counseling—check wilmingtonde.gov or DSHA partners.

Dover / Statewide Partners

DSHA Local Partnerships: Additional grants/loans through regional housing authorities or nonprofits (e.g., Habitat for Humanity Delaware); often forgivable/deferred for qualifying buyers.

Additional Information:

• Special Programs: Rate discounts or extra assistance for teachers, veterans, police/firefighters, and disabled buyers (e.g., Teacher Next Door, Military Homeownership initiatives).
• USDA Loans: 0% down in eligible rural Delaware areas; income limits apply.
• VA Loans: 0% down for eligible veterans/active-duty military.
• FHA Loans: 3.5% minimum down (580+ credit; 10% if below 580).

Delaware programs emphasize forgivable assistance and low rates—always confirm with a DSHA-approved lender or destatehousing.com. Seeking Agents® connects you with Delaware agents who understand these programs and compete to offer reduced commissions or added services—free for buyers/sellers!