Guides / Down Payment Assistance / Delaware

Down Payment Assistance in Delaware

Delaware does have a distinct state-level program: the Delaware State Housing Authority (DSHA), which in April 2026 rebranded its entire single-family lending lineup from "Kiss Your Landlord Goodbye" into the "Delaware Mortgage Program," organized under two tracks — Welcome Home (first-time buyers only) and Open Door (first-time and repeat buyers). All DPA is delivered as a zero-interest, deferred (forgivable-at-sale-timing, not forgivable-outright) second mortgage sized as a percentage (3%, 4%, or 5%) of the first mortgage, with a uniform 620 minimum credit score and mandatory housing counseling below 660. Note: two previously popular DSHA grant programs — Home Sweet Home ($12,000 forgivable) and Delaware Diamonds ($10,000 forgivable, for essential workers) — are currently out of funds with no confirmed refunding date as of mid-2026, so they are excluded from the list above; only the four currently funded percentage-based DPA programs are included.

Programs

First State Home Loan (Welcome Home)
Delaware State Housing Authority (DSHA), via the "Delaware Mortgage Program" (rebranded April 2026, formerly "Kiss Your Landlord Goodbye")
Amount: Zero-interest, deferred second mortgage equal to 3% of the first mortgage loan amount; no monthly payments, repaid only upon sale, refinance, transfer of title, or when the home stops being the primary residence
Type: Deferred-payment silent second mortgage (down payment/closing cost assistance)
Must be a first-time homebuyer (Welcome Home category); minimum credit score 620 (mandatory HUD-approved housing counseling required if score is 659 or below); must use a DSHA-approved 30-year fixed first mortgage (conventional, FHA, VA, or USDA); household income limits (as of the current DSHA schedule): New Castle County $122,700 (1-2 person) / $141,105 (3+ person); Kent & Sussex Counties $111,400 (1-2 person) / $128,110 (3+ person); purchase price limits approximately $617,241 (New Castle) and $544,232 (Kent/Sussex)
Keys4You Home Loan
Delaware State Housing Authority (DSHA), available under both Welcome Home (first-time buyers) and Open Door (repeat buyers) categories
Amount: Zero-interest, deferred second mortgage equal to 4% of the first mortgage loan amount; no monthly payments, deferred until sale/refinance/transfer
Type: Deferred-payment silent second mortgage (down payment/closing cost assistance)
Open to both first-time and repeat buyers; minimum credit score 620 (housing counseling required if 659 or below); Welcome Home income limits apply for first-time buyers (same as First State above); Open Door (repeat buyer) income limits are higher: New Castle $147,240 (1-2 person)/$184,050 (3+); Kent & Sussex $133,680 (1-2 person)/$167,100 (3+); same purchase price limits as First State
Take5 Home Loan
Delaware State Housing Authority (DSHA), Welcome Home category only
Amount: Zero-interest, deferred second mortgage equal to 5% of the first mortgage loan amount for down payment and closing costs; no monthly payments
Type: Deferred-payment silent second mortgage (down payment/closing cost assistance)
First-time homebuyers only (Welcome Home); minimum credit score 620 (counseling required if 659 or below); same Welcome Home income limits as First State (New Castle $122,700/$141,105; Kent & Sussex $111,400/$128,110); same purchase price caps as above
Diamond in the Rough Home Loan
Delaware State Housing Authority (DSHA), Welcome Home category only
Amount: Zero-interest, deferred second mortgage equal to 5% of the loan amount, paired specifically with an FHA 203(k) renovation first mortgage (covering homes needing minor repairs, historically up to roughly $75,000 in rehab costs)
Type: Deferred-payment silent second mortgage paired with FHA 203(k) rehab first mortgage
First-time homebuyers only (Welcome Home); minimum credit score 620 (counseling required if 659 or below); must use FHA 203(k) first mortgage; same Welcome Home income and purchase price limits as First State/Take5

Facts on this page reflect research current as of 2026-07-05. Programs, rates, and laws change — confirm current figures with the relevant state agency before relying on them.

Related Resources
Property Taxes in DelawareTransfer Tax & Closing Costs in DelawareBuyer-Agent Agreements in DelawareSeller Disclosure Laws in DelawareFind Agents in DelawareDown Payment Calculator