Delaware State Housing Authority (DSHA) Programs:
Updated March 2026DSHA 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 kissyourlandlordgoodbye.com/help-for-homebuyers/ 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!
View First-Time Home Buyer Programs for: Florida
Frequently Asked Questions
What home buyer assistance programs are available in Delaware?
Delaware buyers may be able to use statewide assistance, local housing support, and federal loan options such as FHA, VA, and USDA loans. Available programs may differ based on household income, location, and purchase price.
What home buyer assistance programs are available in Delaware?
Delaware buyers may be able to use statewide assistance, local housing support, and federal loan options such as FHA, VA, and USDA loans. Available programs may differ based on household income, location, and purchase price.
Who qualifies as a first-time buyer in Delaware?
Many Delaware programs define a first-time buyer as someone who has not owned a principal residence in the last three years. Certain exceptions may apply for veterans or buyers in targeted areas.
Who qualifies as a first-time buyer in Delaware?
Many Delaware programs define a first-time buyer as someone who has not owned a principal residence in the last three years. Certain exceptions may apply for veterans or buyers in targeted areas.
Can Delaware programs help with both down payment and closing costs?
Yes, some Delaware assistance programs can help with both down payment and closing costs. The support may come through grants, forgivable assistance, or deferred-payment financing.
Can Delaware programs help with both down payment and closing costs?
Yes, some Delaware assistance programs can help with both down payment and closing costs. The support may come through grants, forgivable assistance, or deferred-payment financing.
Is a homebuyer education class required in Delaware?
Many Delaware first-time buyer programs require a homebuyer education course. These classes are meant to help borrowers understand mortgages, budgeting, and the full cost of homeownership.
Is a homebuyer education class required in Delaware?
Many Delaware first-time buyer programs require a homebuyer education course. These classes are meant to help borrowers understand mortgages, budgeting, and the full cost of homeownership.
Should Delaware buyers use an agent familiar with assistance programs?
Yes. A Delaware real estate agent who knows buyer assistance programs can help identify suitable properties, avoid preventable issues, and better coordinate timing with your lender and program requirements.
Should Delaware buyers use an agent familiar with assistance programs?
Yes. A Delaware real estate agent who knows buyer assistance programs can help identify suitable properties, avoid preventable issues, and better coordinate timing with your lender and program requirements.