Delaware First-Time Home Buyer Programs and Assistance
Delaware State Housing Authority (DSHA) currently lists 5 programs for Delaware buyers, with down payment help up to 5% of the loan (about $18,310 on a median-priced home) through DSHA Take5 Home Loan. Figures below were read from the agency's own pages on September 11, 2026.
Delaware first-time buyer programs open now
Delaware State Housing Authority (DSHA) is the state's housing finance agency (homebuyer programs page). It runs 4 down payment or closing-cost assistance programs alongside 1 below-market first mortgage. Has not owned a primary residence in the past 3 years (standard DSHA first mortgage programs); not required for DSHA's Open Door program, which serves both first-time and repeat buyers
| Program | Type | Amount | First-time only | Min. credit | Income limit |
|---|---|---|---|---|---|
| DSHA Smart Start Home Loan source | First mortgage | See program page | Yes | 620 | $111,400 (Kent & Sussex, 1-2 person) to $141,105 (New Castle, 3+ person) under the Welcome Home track; |
| DSHA First State Home Loan source | Deferred second loan | 3% of the first mortgage loan amount | Yes | 620 | $111,400 (Kent & Sussex, 1-2 person) to $141,105 (New Castle, 3+ person) under Welcome Home; |
| DSHA Keys4You Home Loan source | Deferred second loan | 4% of the first mortgage loan amount | Yes | 620 | $111,400 (Kent & Sussex, 1-2 person) to $141,105 (New Castle, 3+ person) under Welcome Home; |
| DSHA Take5 Home Loan source | Deferred second loan | 5% of the first mortgage loan amount | Yes | 620 | $111,400 (Kent & Sussex, 1-2 person) to $141,105 (New Castle, 3+ person) |
| DSHA Diamond in the Rough Home Loan source | Deferred second loan | 5% of the first mortgage loan amount | Yes | 620 | $111,400 (Kent & Sussex, 1-2 person) to $141,105 (New Castle, 3+ person) |
- DSHA Smart Start Home Loan. Terms: 30-year fixed-rate first mortgage with no down payment/closing cost assistance attached Purchase price limit: $566,354 (Kent & Sussex) to $659,385 (New Castle); higher in targeted areas ($692,211-$805,916) Homebuyer education: required Program page
- DSHA First State Home Loan. Terms: 0% interest second mortgage, no monthly payment; repayment deferred until refinance, sale, transfer of title, or the home stops being the primary residence Purchase price limit: $566,354 (Kent & Sussex) to $659,385 (New Castle) Must pair with: A DSHA first mortgage (Smart Start or another DSHA first-mortgage loan) Homebuyer education: required Program page
- DSHA Keys4You Home Loan. Terms: 0% interest second mortgage, no monthly payment; repayment deferred until refinance, sale, transfer of title, or the home stops being the primary residence Purchase price limit: $566,354 (Kent & Sussex) to $659,385 (New Castle) Must pair with: A DSHA first mortgage Homebuyer education: required Program page
- DSHA Take5 Home Loan. Terms: 0% interest second mortgage, no monthly payment; repayment deferred until refinance, sale, transfer of title, or the home stops being the primary residence Purchase price limit: $566,354 (Kent & Sussex) to $659,385 (New Castle) Must pair with: A DSHA first mortgage Homebuyer education: required Program page
- DSHA Diamond in the Rough Home Loan. Terms: 0% interest second mortgage, no required monthly payment; repayment deferred until refinance, sale, transfer of title, or the home stops being the primary residence; must be paired with an FHA 203(k) Limited renovation first mortgage Purchase price limit: $566,354 (Kent & Sussex) to $659,385 (New Castle) Must pair with: FHA 203(k) Limited renovation first mortgage Homebuyer education: required Program page
City and county programs in Delaware
Local governments run their own down payment funds on top of the state programs. These can be combined with a state loan in most cases; each has its own income limit and area.
- City of Wilmington: First Start Homebuyer Program. Lesser of $15,000 or 6% of the purchase price. Forgivable second loan. Income limit: 80% of median family income (CDBG-funded track) to 100% of median family income (non-federal track); e.g.. First-time buyers only. Official page
How little you can put down
You do not need 20% down. Conventional loans go as low as 3% (through programs like Fannie Mae HomeReady and Freddie Mac Home Possible), FHA loans start at 3.5%, and VA and USDA loans can require nothing down. On Delaware's median-priced home (about $366,200), 3% down is roughly $10,986. Putting 20% down lets you skip private mortgage insurance, but most first-time buyers put down far less.
Who counts as a first-time buyer
For most programs, a first-time buyer is anyone who has not owned a primary residence in the last three years, so many repeat buyers qualify again. Delaware programs often add income and purchase-price limits, which is another reason to confirm the details with Delaware State Housing Authority.
Stack a buyer rebate on top in Delaware
Down-payment assistance and a buyer commission rebate are two different things, and in Delaware you can use both. Assistance from Delaware State Housing Authority helps with your down payment and closing costs; a buyer rebate returns about 2% of the price to you at closing (roughly $7,324 on a median-priced home), which can cover much of your closing bill.
Frequently asked questions
What first-time home buyer programs are available in Delaware?
Delaware State Housing Authority (DSHA) lists 5 programs: DSHA Smart Start Home Loan, DSHA First State Home Loan, DSHA Keys4You Home Loan, DSHA Take5 Home Loan, DSHA Diamond in the Rough Home Loan. Down payment help runs up to 5% of the loan (about $18,310 on a median-priced home). City of Wilmington also run local down payment programs.
How much down payment assistance can you get in Delaware?
Up to 5% of the loan (about $18,310 on a median-priced home) through DSHA Take5 Home Loan (deferred second loan). Other Delaware programs offer different amounts; see the table on this page for each one.
Do you have to be a first-time buyer to qualify in Delaware?
Has not owned a primary residence in the past 3 years (standard DSHA first mortgage programs); not required for DSHA's Open Door program, which serves both first-time and repeat buyers
How much down payment do you need in Delaware?
As little as 3% on a conventional loan, 3.5% on an FHA loan, and 0% on VA or USDA loans. On Delaware's median-priced home (about $366,200), 3% is roughly $10,986. You do not need 20% down, though 20% lets you avoid mortgage insurance.
Who counts as a first-time home buyer?
For most programs, a first-time buyer is anyone who has not owned a primary residence in the last three years. Some Delaware programs also have income and purchase-price limits, so check with Delaware State Housing Authority.
Can I combine assistance with a buyer rebate in Delaware?
Yes. A buyer commission rebate is separate from down-payment assistance and is legal in Delaware. Assistance helps with your down payment and closing costs up front; a rebate returns about 2% of the price at closing, which you can put toward closing costs. You can use both.
Official sources
- Delaware State Housing Authority (DSHA)
- DSHA - Delaware Mortgage Program
- City of Wilmington - First Start Homebuyer Program
- Consumer Financial Protection Bureau: down payment options and how to prepare
Delaware program details last verified against Delaware State Housing Authority on September 11, 2026.
Read the full guide to the cash you need to buy →
This is general information, not financial advice. Program details, limits, and loan terms change; confirm the current rules with Delaware State Housing Authority and your lender before you rely on them.
See first-time buyer programs in all states