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 the Smart Start Home Loan and related products; DSHA offers lower than market or discounted rates for qualifying borrowers.
Requirements:

• Income limits vary by county, household size, and whether the property is in a DSHA targeted area. Example ranges: Welcome Home non-targeted limits often around $108,800–$119,400 for 1–2 person households and $125,120–$137,310 for larger households; targeted area limits are higher. See DSHA income tables for exact values.
• Minimum credit score commonly 620 (DSHA notes 620 minimum; borrowers with scores 659 or below typically must complete counseling). See DSHA program page for loan type specifics.
• Purchase price caps apply by county and are commonly in the mid hundreds of thousands (example caps: approx $544k in Kent/Sussex, $617k in New Castle; higher caps for targeted areas). Check DSHA purchase price limits for current caps.
• 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 are 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). See DSHA homeownership page.
• 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). See DSHA homeownership page.
• Diamond in the Rough (FHA 203k limited): 5% DPA for buyers using FHA 203k limited renovation financing; same deferred structure. See DSHA for program details.
• Home Sweet Home (temporary): DSHA has run limited time forgivable DPA initiatives for lower purchase price homes (commonly targeted at homes with max sale price near $285,000). Public DSHA notices and press releases have cited either $10,000 or $12,000 in different updates; confirm the current Home Sweet Home amount on DSHA before publishing. See DSHA news and program notice for details.
• Delaware Diamonds (temporary): Targeted forgivable DPA for qualified workers in education, healthcare, public safety, and certain other occupations; amounts in DSHA materials have been described at around $10,000 and are forgivable over time if occupancy is maintained. Check DSHA for the current eligibility list and amounts.

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; some program materials show assistance levels up to around $15,000 depending on income and loan layering. Always confirm current funding at the City of Wilmington housing pages. See the official City of Wilmington program document for details: Wilmington First Start Homebuyers Program.

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

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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