Down Payment Path

Down Payment Assistance Programs in Delaware

Delaware offers several programs designed to help homebuyers with the upfront costs of purchasing a home. These programs aim to make homeownership achievable for a broad range of buyers, not just first-time purchasers, ensuring more people can enjoy the benefits of owning a home in the First State.

DSHA Preferred Plus Program

The Delaware State Housing Authority (DSHA) Preferred Plus Program provides financial assistance to cover down payment and closing costs.

  • Offers up to 5% of the loan amount as a forgivable loan.
  • Forgiveness occurs over a set period if the buyer remains in the home.
  • Available for FHA, VA, USDA, and conventional loans.
  • Open to buyers who meet income and purchase price limits.

DSHA Homeownership Loans

The DSHA Homeownership Loan program offers affordable fixed-rate mortgages, which can be paired with down payment assistance.

  • Available to both first-time and repeat homebuyers.
  • Supports FHA, VA, USDA, and conventional loans with competitive interest rates.
  • Income and purchase price limits apply but cover a wide range of buyers.

USDA Rural Development Loans

For buyers in eligible rural areas, the USDA Rural Development Loan provides financing with no down payment required.

  • Open to low- and moderate-income buyers in designated rural areas.
  • Can be combined with other programs to cover closing costs.
  • Flexible credit requirements make it accessible to many buyers.

Mortgage Credit Certificate (MCC)

The Mortgage Credit Certificate program offers tax benefits to reduce the overall cost of homeownership.

  • Allows buyers to claim a federal tax credit for a portion of their mortgage interest paid annually.
  • Available to buyers meeting income and purchase price limits.
  • Can be combined with DSHA or other assistance programs.

Local Assistance Programs

In addition to statewide programs, many cities and counties in Delaware provide additional resources for homebuyers.

  • Programs in areas like Wilmington and Dover often include grants or low-interest loans for down payment and closing costs.
  • Some local programs offer incentives for public service workers or residents buying in targeted neighborhoods.
  • Eligibility and assistance levels vary by location.

Delaware’s down payment assistance programs are designed to make homeownership more attainable by reducing upfront costs. Whether you’re purchasing your first home or moving to a new one, these resources can help you achieve your goal of owning a home in the First State.