First-Time Home Buyer Programs in Delaware

Delaware State Housing Authority (DSHA) Programs:

DSHA runs the Delaware Mortgage Program offering 30-year fixed mortgages with competitively priced rates and a set of down payment and closing cost assistance options. First-time buyer status, targeted area rules, income limits, and purchase price caps affect eligibility. Confirm current rates, income and sales price limits, and temporary assistance availability at DSHA Homeownership Loans and DSHA interest rates, or ask a DSHA approved lender.

DSHA First-Time Homebuyer Mortgage Programs:

Eligibility: Welcome Home is designed for first-time homebuyers (no ownership of a primary residence in the prior 3 years; exceptions for qualified veterans and purchases in targeted areas). Open Door expands access for first-time and repeat buyers. See DSHA for full definitions.
Offerings: 30-year fixed loans available as Conventional, FHA, VA, or USDA via DSHA participating lenders; DSHA offers discounted pricing and down payment options for qualifying borrowers.
Requirements:

• Income limits vary by county, household size, and whether the property is in a DSHA targeted area. Current Welcome Home examples from DSHA: New Castle approx $119,400 (1-2 person) / $137,310 (3+); Kent & Sussex approx $108,800 (1-2 person) / $125,120 (3+). See DSHA income tables for exact values. (DSHA Homeownership Loans)
• Minimum credit score commonly 620; applicants with scores 659 or below typically must complete counseling. See DSHA program page for loan type specifics.
• Purchase price caps are published by county. Current DSHA single-family caps are roughly $617,241 for New Castle and $544,232 for Kent/Sussex (higher caps apply for targeted areas). Verify DSHA purchase price limits before quoting or underwriting a file.
• Mandatory homebuyer education or counseling is required for many borrowers; DSHA lists HUD approved housing counselors on its site.

Down Payment Assistance (DPA) through DSHA:

How it works: DSHA provides second mortgage DPA that is typically zero interest and deferred until sale, refinance, transfer, or nonprimary occupancy. Some temporary DPA options have been forgivable over a 10 year period if occupancy is maintained. DPA must be paired with a DSHA first mortgage and completed through a DSHA approved lender.

• First State Home Loan: Zero interest second mortgage equal to 3% of the first mortgage loan amount for down payment and closing costs (deferred repayment events apply). See DSHA Homeownership Loans.
• Keys4You Home Loan: Zero interest second mortgage equal to 4% of the first mortgage loan amount for down payment and closing costs (deferred repayment).
• Take5 Home Loan: Zero interest second mortgage equal to 5% of the first mortgage loan amount for down payment and closing costs (Welcome Home only).
• Diamond in the Rough (FHA 203k limited): 5% DPA for buyers using FHA 203k limited renovation financing; same deferred structure.
• Limited-time offers: DSHA has run time-limited forgivable DPA initiatives (for example, DSHA materials and Council on Housing minutes describe a "Home Sweet Home" forgivable second mortgage and reporting on Delaware Diamonds disbursements). Amounts and eligibility for these initiatives have varied; confirm current availability and amounts on DSHA news before assuming they are active. See DSHA news and council minutes for historical references. (DSHA COH minutes)

Local Programs (Examples):

City and county programs can add local down payment and closing cost grants or forgivable assistance. Funding is limited and subject to municipal budgets; verify availability with the administering agency.

Wilmington

Wilmington Homeownership Programs: The City of Wilmington offers First Start and related assistance that can provide down payment and settlement assistance to eligible buyers; program documents show assistance levels that can reach approximately $15,000 for some buyers and higher caps for CDBG-eligible buyers in certain cases. Always confirm current funding and caps at the City of Wilmington housing pages. (Wilmington First Start manual)

Dover / Statewide Partners

DSHA Local Partnerships: Additional grants or loans may be available through regional housing authorities, nonprofit partners, or employer assisted housing programs. Examples include nonprofit homebuyer programs and Habitat for Humanity affiliates; eligibility, amounts, and forgivable terms vary.

Additional Information:

• Special support: DSHA and partner programs sometimes offer targeted assistance or pricing benefits for teachers, veterans, first responders, and healthcare workers through specific temporary or targeted initiatives. See DSHA news for current targeted initiatives.
• USDA Loans: 0% down options for eligible rural properties; income and area restrictions apply. See USDA Rural Development.
• VA Loans: 0% down for eligible veterans and active duty service members when using VA financing. See VA Home Loans.
• FHA Loans: Minimum down payment typically 3.5% for credit scores 580 and above; FHA rules apply. See HUD / FHA guidance.

DSHA programs emphasize deferred zero interest second mortgages and targeted-area flexibility.

For the latest rules, income and purchase price limits, temporary program amounts, and current interest rates, verify with a DSHA approved lender or DSHA directly at destatehousing.com.

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