Delaware Down Payment Assistance
Delaware Down Payment Assistance Programs
A guide to current down payment assistance options in Delaware, including the state Housing Finance Agency, well-known city and county programs, and live DPA mortgage pricing for Delaware homebuyers.
Delaware Housing Finance Agency
Housing Delaware (Delaware State Housing Authority) (DSHA)
DSHA administers the primary DPA programs for Delaware. Program details below are current as of October 17, 2026 - confirm current terms directly with DSHA before applying.
Statewide DPA Programs in Delaware
Welcome Home (First Mortgage)
DSHA
Below-market 30-year fixed-rate first mortgage for first-time homebuyers under the Delaware Mortgage Program, with a choice of down payment and closing cost assistance options.
Paired with: Conventional, FHA, VA, USDA
- First-time homebuyer: Required
- Primary residence only
- Minimum FICO: 620
- Income: Household income up to $122,700 (1-2 persons) or $141,105 (3+) in New Castle; $111,400 or $128,110 in Kent and Sussex. Higher limits in targeted areas.
Applicants with credit scores of 659 or below must complete housing counseling. Purchase price limits apply by county. First-time homebuyer is defined as not having owned a primary residence in the prior three years.
Source: www.destatehousing.com
Open Door (First Mortgage)
DSHA
30-year fixed-rate first mortgage at or below market rates for first-time and repeat buyers, with a choice of 3% or 4% down payment and closing cost assistance.
Paired with: Conventional, FHA, VA, USDA
- First-time homebuyer: Not required
- Primary residence only
- Minimum FICO: 620
- Income: Household income up to $147,240 (1-2 persons) or $184,050 (3+) in New Castle; $133,680 or $167,100 in Kent and Sussex.
Applicants with credit scores of 659 or below must complete housing counseling. Purchase price limits apply by county.
Source: www.destatehousing.com
First State, Keys4You, and Take5 Home Loans
DSHA
Zero-interest second mortgage for down payment and closing costs equal to 3% (First State), 4% (Keys4You), or 5% (Take5) of the first mortgage amount. No monthly payment.
Paired with: Conventional, FHA, VA, USDA
- Primary residence only
- Minimum FICO: 620
- Income: Welcome Home or Open Door income and purchase price limits apply by county and household size.
Repayment deferred until refinance, sale, transfer of title, or the home is no longer the primary residence. First State and Keys4You pair with Welcome Home or Open Door; Take5 is Welcome Home only (first-time buyers). Keys4You and Take5 launched April 2026.
Source: www.destatehousing.com
Diamond in the Rough Home Loan
DSHA
Zero-interest second mortgage equal to 5% of the first mortgage amount for down payment and closing costs, on a home needing minor repairs.
Paired with: FHA 203(k) Limited
- First-time homebuyer: Required
- Primary residence only
- Minimum FICO: 620
- Income: Welcome Home income and purchase price limits apply by county and household size.
Welcome Home only. Buyer must qualify for the FHA 203(k) limited program. Repayment deferred until refinance, sale, transfer of title, or the home is no longer the primary residence.
Source: www.destatehousing.com
Delaware First-Time Homebuyer Tax Credit
DSHA
Federal tax credit equal to 35% of annual mortgage interest paid, capped at $2,000 per year; unused credit can carry forward 3 years.
- First-time homebuyer: Required
- Primary residence only
Issued through participating lenders on a first mortgage; income and purchase price limits apply. Issuance fee of 1% of the loan amount, waived with a Welcome Home loan. Subject to IRS recapture rules. Not listed in the 2026 Delaware Mortgage Program lineup; confirm current availability with DSHA.
Source: www.destatehousing.com
Delaware Notes for Homebuyers
- Delaware is an attorney-closing state; a licensed Delaware attorney typically conducts the settlement.
- Delaware realty transfer tax is among the higher rates in the country; first-time buyers may qualify for a partial state exemption.
2026 Loan Limits in Delaware
Conforming (Conventional)
$832,750 baseline
FHA
$541,287
Standard FHA limit, applies to most Delaware counties.
Live DPA Pricing for Delaware
Pricing below is sourced live from hundreds of wholesale lenders for a Delaware scenario. Edit the inputs to match your situation.
FHA Down Payment Assistance
Up to 5% assistance; repayable second at first rate + 2% over 10 years
▸Program details
- ✓Minimum credit score: 580
- ✓Non-traditional credit also possible
- ✓Assistance up to 2.5%, 3.5%, or 5% of the lesser of purchase price or appraised value
- ✓Assistance can be used for down payment, closing costs, or both
- ✓Second lien: 10-year fixed, repayable
- ✓Second lien rate is 2% higher than the first mortgage rate
- ✓No first-time homebuyer requirement
- ✓No income cap
- ✓Purchase of primary residence only
- ✓Eligible properties: 1-unit residences, PUD, 2-4 units, FHA-approved condos, manufactured (single/double-wide)
- ✓DTI per AUS and FHA manual underwriting guidelines
- ✓First lien: FHA 30-year fixed
Assistance amount
Compare DPA options for Delaware with live pricing
Rate Direct pairs down payment assistance with live first-lien pricing so you see the combined monthly payment up front.