Delaware State Housing Authority (DSHA) Programs:
Updated June 8, 2026DSHA 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, DSHA interest rates, or in DSHA's lender materials (see the DMP Fact Sheet (April 2026) and the Delaware Mortgage Program Notice (April 2026)).
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 provides program pricing and down payment options for qualifying borrowers.
Requirements:
- Income limits: DSHA income limits vary by county, household size, and whether the property is in a targeted area. Current DSHA published examples (Welcome Home): New Castle roughly $122,700 (1-2 person) / $141,105 (3+); Kent & Sussex roughly $111,400 (1-2 person) / $128,110 (3+). Open Door limits are higher. See DSHA income tables for exact household-size values. (DSHA Homeownership Loans; DSHA lender materials show alternate tables — see Program Notice (April 2026)).
- Minimum credit score: DSHA generally requires a minimum middle FICO of about 620 for its mortgage programs. DSHA lender materials and the DMP Fact Sheet specify that any borrower with a FICO score of 659 or below must complete HUD-approved housing counseling prior to closing. Confirm product-specific FICO rules (manufactured home, FHA 203(k) limited, USDA) with the lender or DSHA program notice. (DMP Fact Sheet).
- Purchase price caps: DSHA publishes county caps and higher caps for targeted areas. Public DSHA tables commonly show single-family non-targeted caps about $659,385 for New Castle and $566,354 for Kent/Sussex; targeted-area caps are higher. DSHA's April 2026 Program Notice and lender bulletins contain the precise reservation caps and per-product limits; verify before quoting or underwriting a file. (DSHA Homeownership Loans; Program Notice (April 2026)).
- Homebuyer education: Counseling or a HUD-approved education course is required for many borrowers and is mandatory when credit scores fall below program thresholds. DSHA lists approved counseling resources on its site and in lender materials.
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 set periods when occupancy rules are met. DPA must be paired with a DSHA first mortgage and processed 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 and the DSHA fact sheet for details. (DMP Fact Sheet).
- 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 (available on certain Welcome Home products).
- Diamond in the Rough (FHA 203(k) limited): 5% DPA for buyers using FHA 203(k) limited renovation financing; same deferred structure.
- Temporary/forgivable offers: DSHA occasionally runs time-limited forgivable DPA initiatives. Amounts and eligibility vary by round and budget; check DSHA news and lender bulletins before assuming availability. (DSHA Homeownership Loans).
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 administers the First Start Homebuyer Program that provides down payment and settlement assistance to eligible buyers. Assistance levels vary by funding source: some CDBG-eligible buyers may receive up to roughly $40,000 while other eligibility tiers show caps around $15,000 or the lesser of $15,000 or 6% of purchase price. Always confirm current funding and caps in the City manual or program portal. (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. (DSHA Homeownership Loans)
- 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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