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
Delaware State Housing Authority (DSHA)
DSHA administers the primary DPA programs for Delaware. Program details below are current as of April 23, 2026 - confirm current terms directly with DSHA before applying.
Statewide DPA Programs in Delaware
Welcome Home (First Mortgage)
DSHA
30-year fixed-rate first mortgage for first-time homebuyers, eligible to pair with DSHA down payment assistance programs.
Paired with: Conventional, FHA, VA, USDA
- First-time homebuyer: Required
- Primary residence only
- Minimum FICO: 620
- Homebuyer education required
First-time homebuyer is defined as not having owned a primary residence in the prior three years.
Source: www.destatehousing.com
Home Sweet Home Loan Down Payment Assistance
DSHA
Up to $12,000 in down payment and closing cost assistance as a silent second mortgage.
Paired with: Conventional, FHA, VA, USDA
- Primary residence only
- Minimum FICO: 620
- Income: Household income at or below 80% of area median income (AMI).
- Homebuyer education required
Available to first-time and repeat buyers subject to income limits.
Source: www.destatehousing.com
Delaware Diamond DPA
DSHA
Forgivable second mortgage of $15,000 toward down payment and closing costs for eligible essential workers.
Paired with: Conventional, FHA, VA, USDA
- Primary residence only
- Minimum FICO: 620
- Homebuyer education required
Forgivable if the home is occupied as the primary residence for at least 10 years. Occupational eligibility applies; see DSHA schedule.
Source: www.destatehousing.com
Delaware First-Time Homebuyer Tax Credit
DSHA
Federal tax credit equal to up to 35% of annual mortgage interest paid, capped at $2,000 per year.
- First-time homebuyer: Required
- Primary residence only
Issued with a DSHA-approved first mortgage. Subject to IRS recapture rules.
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)
$806,500 baseline
FHA
$524,225 floor
Most Delaware counties use the FHA floor limit.
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.