First-Time Home Buyer Programs in Delaware

Delaware State Housing Authority (DSHA) Programs:

Delaware First-Time Homebuyer Program:

Eligibility: Targets first-time homebuyers (no homeownership in the past three years) or buyers in targeted areas of Delaware.
Offerings: Provides a 30-year fixed-rate mortgage (FHA, VA, USDA, or conventional) at competitive rates through participating lenders; can be paired with down payment assistance.
Requirements:

• Income must not exceed county-specific limits (e.g., $126,300 in New Castle County as of 2025).
• Minimum credit score of 620 (or per loan type guidelines).
• Debt-to-income ratio typically capped at 45%.
• Homebuyer education course required for all first-time buyers.

Delaware Diamonds Down Payment Assistance:

Benefits: Offers up to $15,000 as a 0% interest second mortgage for down payment and closing costs, repayable over 10 years; prioritizes state employees, educators, and healthcare workers but open to all eligible buyers.
Eligibility: Must use a DSHA first mortgage; income and purchase price limits apply (e.g., $417,000 for a single-family home).

Home Sweet Home Program:

Description: Provides up to $10,000 as a 0% interest, deferred second loan (due on sale, refinance, or transfer) for down payment and closing costs; combinable with DSHA first mortgages.
Requirements: Must be a first-time homebuyer or buying in a targeted area; income must not exceed DSHA limits.

Local Programs:

Wilmington

Home Ownership Assistance Program (HOAP): Offers up to $10,000 as a forgivable loan (forgiven after 10 years) for first-time buyers in Wilmington; income must not exceed 80% of area median income (AMI).

New Castle County

First-Time Homebuyer Program: Provides up to $5,000 as a 0% interest, deferred loan (due on sale or refinance) for down payment and closing costs; income must be at or below 80% AMI, and property must be in New Castle County outside Wilmington.

Dover

Dover Down Payment and Settlement Assistance: Offers up to $12,000 as a forgivable loan (forgiven after 5 years) for first-time buyers in Dover; income must not exceed 80% AMI, and homebuyer counseling is required.

Additional Information:

• Mortgage Credit Certificate (MCC): Provides a federal tax credit of up to 35% of annual mortgage interest (max $2,000) for first-time buyers or those in targeted areas when using a DSHA mortgage; fee of $500 applies.
• USDA and VA Loans: Zero-down payment options for rural areas (USDA) or veterans/active military (VA).
• FHA Loans: Minimum 3.5% down payment, suitable for credit scores as low as 580 (10% if below 580).